BUSN 279 CH 1-4 Exam Questions and Answers Fully Solved Latest Update

BUSN 279 CH 1-4 Exam Questions and Answers Fully Solved Latest Update Globalization - AnswersTrend away from distinct national economic units and toward one huge global market Globalization of Markets - AnswersMerging national markets into one global market Globalization of Production - AnswersWhen businesses disperse production around the world to take advantage of cost and quality differences Factors of Production - AnswersInputs into the productive process of a firm including labor, management, land, capitol, and technological know how World Trade Organization - AnswersPrimarily responsible for policing the world trading system and making sure everyone follows the rules World Bank - AnswersSet-up to promote economic development. Makes low-interest loans to poor nations that want to make significant infrastructure investments International Money Fund - AnswersSet up to maintain order in the international money system: last resort lender to nations whose economies are in trouble and currency is losing value Foreign Direct Investment - AnswersDirect investments in business operations in a foreign country Multinational Enterprise (MNE) - AnswersA firm that owns business operations in more than one country Describe five technological changed driving globalization of markets and production. - AnswersSuperfreighters, commerical jet travel, and containerization lowers costs and reduces time to transport goods. Microprocessors increases amount of information able to be communicated and processed in business. Internet allows e-commerce sales, so the barriers of time, location, etc. don't apply and both small and large businesses can expand at a lower cost. What are five arguments in favor of globalization? - Answers1. Allows firms to move manufacturing activities to places with lower wage costs. 2. Allows countries to specialize in production of certain goods 3. Countries will be able to import goods and services that they cannot produce efficiently. 4. As countries get richer as a result of globalization, they raise their environment and labor standards. 5. Power of organizations is limited to what nation-states collectively agree to grant. 6. Actions of governments have made limited economic development in many countries. What are five arguments against globalization? - Answers1. Jobs in advanced economies are being lost to low-wage nations 2. Negatively affects living standards and the environment 3. Encourages firms from advanced nations to move manufacturing facilities to less developed countries with lax environmental and labor regulations. 4. Economic power is shifting away from national governments and toward supranational organizations like the WTO, EU, and the UN.