BUSMHR 2000 EXAM SCRIPT 2025/2026 QUESTIONS WITH
SOLUTIONS RATED A+
✔✔Factors of Production - ✔✔Inputs into the productive process of a firm, including
labor, management, land, capital, and technological know-how.
By doing this, companies hope to lower their overall cost structure or improve the quality
or functionality of their product offering, thereby allowing them to compete more
effectively.
✔✔Requirements for Globalization - ✔✔Free movement of goods and services across
national borders
-The World Trade Organization has helped establish freer trade between member
nations
Relative economic stability across the world
-Political and economic risks reduce incentives to enter markets and engage in
business
-The IMF and World Bank created to foster economic stability
✔✔Requirements for Globalization Cont. - ✔✔Relative political stability across the world
-The United Nations created as a forum for political negotiations
-Political power of one or more countries to maintain order (highly controversial)
Communication improvements
-Email, satellite transmissions, telephone
Technological improvements
-Computers
Transportation improvements
-Air, ocean, ground
✔✔Who Benefits - ✔✔Producers
-Large multinational firms
-Small firms
-Medium firms
Workers
Consumers
Governments
The environment
✔✔Global Institutions - ✔✔Globalization has created the need for institutions to help
manage, regulate and police the global marketplace
General Agreement on Tariffs and Trade (GATT)
, -International treaty that committed signatories to lowering barriers to the free flow of
goods across national borders and led to the WTO.
World Trade Organization (WTO)
-The organization that succeeded the General Agreement on Tariffs and Trade (GATT)
as a result of the successful completion of the Uruguay Round of GATT negotiations.
-Primarily responsible for policing the world trading system and making sure nation-
states adhere to the rules laid down in trade treaties signed by WTO member states.
✔✔Global Institutions Cont. - ✔✔International Monetary Fund (IMF)
-International institution set up to maintain order in the international monetary system
-Helped with 2008-2009 financial crisis
- IMF requires nation-states to adopt specific economic policies aimed at returning their
troubled economies to stability and growth.
World Bank
-International institution set up to promote general economic development in the world's
poorer nations.
-The World Bank is the less controversial of the two sister institutions. It has focused on
making low-interest loans to cash-strapped governments in poor nations that wish to
undertake significant infrastructure investments (such as building dams or roads).
United Nations
-international organization made up of 193 countries headquartered in New York City,
formed in 1945 to promote peace, security, and cooperation.
- to maintain international peace and security, to develop friendly relations among
nations, to cooperate in solving international problems and in promoting respect for
human rights, and to be a center for harmonizing the actions of nations.
G20
-Established in 1999, the G20 comprises the finance ministers and central bank
governors of the 19 largest economies in the world, plus representatives from the
European Union and the European Central Bank.
✔✔Driver of Globalization - ✔✔International Trade
- Occurs when a firm exports goods or services to consumers in another country.
Foreign Direct Investment (FDI)
-Direct investment in business operations in a foreign country.
Moore's Law
-The power of microprocessor technology doubles and its costs of production fall in half
every 18 months.
✔✔National Sovereignty - ✔✔All nations are sovereign entities: they have the right to
govern themselves
SOLUTIONS RATED A+
✔✔Factors of Production - ✔✔Inputs into the productive process of a firm, including
labor, management, land, capital, and technological know-how.
By doing this, companies hope to lower their overall cost structure or improve the quality
or functionality of their product offering, thereby allowing them to compete more
effectively.
✔✔Requirements for Globalization - ✔✔Free movement of goods and services across
national borders
-The World Trade Organization has helped establish freer trade between member
nations
Relative economic stability across the world
-Political and economic risks reduce incentives to enter markets and engage in
business
-The IMF and World Bank created to foster economic stability
✔✔Requirements for Globalization Cont. - ✔✔Relative political stability across the world
-The United Nations created as a forum for political negotiations
-Political power of one or more countries to maintain order (highly controversial)
Communication improvements
-Email, satellite transmissions, telephone
Technological improvements
-Computers
Transportation improvements
-Air, ocean, ground
✔✔Who Benefits - ✔✔Producers
-Large multinational firms
-Small firms
-Medium firms
Workers
Consumers
Governments
The environment
✔✔Global Institutions - ✔✔Globalization has created the need for institutions to help
manage, regulate and police the global marketplace
General Agreement on Tariffs and Trade (GATT)
, -International treaty that committed signatories to lowering barriers to the free flow of
goods across national borders and led to the WTO.
World Trade Organization (WTO)
-The organization that succeeded the General Agreement on Tariffs and Trade (GATT)
as a result of the successful completion of the Uruguay Round of GATT negotiations.
-Primarily responsible for policing the world trading system and making sure nation-
states adhere to the rules laid down in trade treaties signed by WTO member states.
✔✔Global Institutions Cont. - ✔✔International Monetary Fund (IMF)
-International institution set up to maintain order in the international monetary system
-Helped with 2008-2009 financial crisis
- IMF requires nation-states to adopt specific economic policies aimed at returning their
troubled economies to stability and growth.
World Bank
-International institution set up to promote general economic development in the world's
poorer nations.
-The World Bank is the less controversial of the two sister institutions. It has focused on
making low-interest loans to cash-strapped governments in poor nations that wish to
undertake significant infrastructure investments (such as building dams or roads).
United Nations
-international organization made up of 193 countries headquartered in New York City,
formed in 1945 to promote peace, security, and cooperation.
- to maintain international peace and security, to develop friendly relations among
nations, to cooperate in solving international problems and in promoting respect for
human rights, and to be a center for harmonizing the actions of nations.
G20
-Established in 1999, the G20 comprises the finance ministers and central bank
governors of the 19 largest economies in the world, plus representatives from the
European Union and the European Central Bank.
✔✔Driver of Globalization - ✔✔International Trade
- Occurs when a firm exports goods or services to consumers in another country.
Foreign Direct Investment (FDI)
-Direct investment in business operations in a foreign country.
Moore's Law
-The power of microprocessor technology doubles and its costs of production fall in half
every 18 months.
✔✔National Sovereignty - ✔✔All nations are sovereign entities: they have the right to
govern themselves
