IB 303 EXAM 1 WITH ACCURATE
SOLUTIONS
Globalization - ANS-refers to the shift towards a more integrated and interdependent
world economy (interconnected and interdependent)
The 4 pillars we can measure globalization - ANS-1. Capital
2. People
3. Trade
4. Information
Globalization trends POST Covid - ANS-Took a hit during and with recession but it is
now back on the rise and higher than before
globalization of markets - ANS-the merging of historically distinct and separate national
markets into one huge global marketplace
2 types of markets - ANS-Non-consumer products and Consumer Products
non-consumer products - ANS-this is most markets; industrial--> microprocessors,
software, memory chips, jet aircraft; commodities --> aluminon, oil, wheat, soybeans;
financial assets --> stocks, bonds, Euro, futures
consumer products - ANS-demand side where the consumer tastes are converging
EX: citi CC, coke soft drinks, mcdonalds, starbucks, ikea, tiktok, different ads, netflix
Globalization of production - ANS-make it for less outside the home country
factors of production --> labor, energy, land and capital, outsourcing and offshoring
ex: i phone parts made in china then assembled in the USA
9 months or 5 days
globalization of services - ANS-driven by digital technology
threat to service sector in developed countries
indian software engineers debugging for our stuff
Drivers of Globalization - ANS-Declining trade and investment barriers
Technological change
Declining Trade and Investment Barriers (Driver of Globalization) - ANS-WTO and RTA
driving down barriers, no tariffs
, Technology (Driver of Globalization) - ANS-Communication and information processing
(Moores law - doubles for half the price every 18 hours, internet of things) EX: satellite
ballon --> tech to the most remote areas
Transportation advancements
EX: containerization and commercial jet for a faster travel of people and goods
Institutions that support globalization and Primary Functions - ANS-WTO, IMF, WB, UN,
G20
World Trade Organization (WTO) - ANS-a trade organization that polices trade and fair
market values (regulates and facilitates international trade)
International Monetary Fund (IMF) - ANS-promotes financial stability and monetary
cooperation (looks for other economies that are in trouble one country bad others follow
like a sneeze)
Work Bank - ANS-focused on economic development (provides low cost loans to the
poorest countries so they can compete in a global market)
United Nations - ANS-international peace and security
G20 - ANS-economic stability and growth
19 of the largest worlds economics + EU
formulate solutions to economic problems
management contracts - ANS-an arrangement under which operational control of an
enterprise that performs the necessary managerial functions for a return fee
Offshoring - ANS-a firm is shifting production to a different country (operations)
Outsourcing - ANS-give that work to a 3rd party (Boeing with Japan)
trade openess - ANS-measured by the actual size of registered imports and exports,
orientiational in context of international trade
multinational corporation(MNC) - ANS-business with activities in more than one country
Most Attractive Market - ANS-Democracy, Market Oriented Economy, Rule of Law
Political Eviorment - ANS-Gov't attitudes/ policies influences how business is conducted
(covid and gun control); businesses have to be able to react
Characteristics of Democracy - ANS-citizens participate, market economy, rule of law
(written and transparent), Value freedom and individualism, political environment
promotes economic growth, low corruption
SOLUTIONS
Globalization - ANS-refers to the shift towards a more integrated and interdependent
world economy (interconnected and interdependent)
The 4 pillars we can measure globalization - ANS-1. Capital
2. People
3. Trade
4. Information
Globalization trends POST Covid - ANS-Took a hit during and with recession but it is
now back on the rise and higher than before
globalization of markets - ANS-the merging of historically distinct and separate national
markets into one huge global marketplace
2 types of markets - ANS-Non-consumer products and Consumer Products
non-consumer products - ANS-this is most markets; industrial--> microprocessors,
software, memory chips, jet aircraft; commodities --> aluminon, oil, wheat, soybeans;
financial assets --> stocks, bonds, Euro, futures
consumer products - ANS-demand side where the consumer tastes are converging
EX: citi CC, coke soft drinks, mcdonalds, starbucks, ikea, tiktok, different ads, netflix
Globalization of production - ANS-make it for less outside the home country
factors of production --> labor, energy, land and capital, outsourcing and offshoring
ex: i phone parts made in china then assembled in the USA
9 months or 5 days
globalization of services - ANS-driven by digital technology
threat to service sector in developed countries
indian software engineers debugging for our stuff
Drivers of Globalization - ANS-Declining trade and investment barriers
Technological change
Declining Trade and Investment Barriers (Driver of Globalization) - ANS-WTO and RTA
driving down barriers, no tariffs
, Technology (Driver of Globalization) - ANS-Communication and information processing
(Moores law - doubles for half the price every 18 hours, internet of things) EX: satellite
ballon --> tech to the most remote areas
Transportation advancements
EX: containerization and commercial jet for a faster travel of people and goods
Institutions that support globalization and Primary Functions - ANS-WTO, IMF, WB, UN,
G20
World Trade Organization (WTO) - ANS-a trade organization that polices trade and fair
market values (regulates and facilitates international trade)
International Monetary Fund (IMF) - ANS-promotes financial stability and monetary
cooperation (looks for other economies that are in trouble one country bad others follow
like a sneeze)
Work Bank - ANS-focused on economic development (provides low cost loans to the
poorest countries so they can compete in a global market)
United Nations - ANS-international peace and security
G20 - ANS-economic stability and growth
19 of the largest worlds economics + EU
formulate solutions to economic problems
management contracts - ANS-an arrangement under which operational control of an
enterprise that performs the necessary managerial functions for a return fee
Offshoring - ANS-a firm is shifting production to a different country (operations)
Outsourcing - ANS-give that work to a 3rd party (Boeing with Japan)
trade openess - ANS-measured by the actual size of registered imports and exports,
orientiational in context of international trade
multinational corporation(MNC) - ANS-business with activities in more than one country
Most Attractive Market - ANS-Democracy, Market Oriented Economy, Rule of Law
Political Eviorment - ANS-Gov't attitudes/ policies influences how business is conducted
(covid and gun control); businesses have to be able to react
Characteristics of Democracy - ANS-citizens participate, market economy, rule of law
(written and transparent), Value freedom and individualism, political environment
promotes economic growth, low corruption
