FVC1 Global Business - WGU Study Guide questions with complete solutions

What are the characteristics of globalization? correct answer: Removal of trade barriers, Promote free trade, Removal of cultural barriers, Interdependence, Technological innovation How do major international institutions facilitate globalization? correct answer: International Monetary Fund system (IMF) - to Promote global financial stability; World Bank - to help reconstruct developing nation economies and end extreme poverty; World Trade Organization (WTO) - to promote trade in agriculture, services, inventions and intellectual property Why is it important for political leaders and institutions to be transparent in responding to global competition? correct answer: Promotes a competitive market structure. Greater levels of trade and investment and promotes overall globalization What are key policy measures that make globalization sustainable? correct answer: Transparency, Removing trade barriers, Channel information about market conditions, goods, services, and participants, Define property rights and contracts, Promote competition and innovation in markets What are ways that technology bridges the global digital divide? correct answer: Decreases communication costs What is the rationale of specific anti-globalization arguments? correct answer: There cannot be a guarantee that quality of life for all people will increase, or that all changes caused by globalization will be positive. Globalization creates winners and losers, Job losses and income stagnation, Loss of local control over economic policies and development, Disappearance of old industries, related erosion of communities What are the benefits of trade? correct answer: Greater amount of choice in the availability of goods and services, Gr