Headings

Question 1

Benefits of Globalization

Answer 1

Increased Trade
Increased Investment
Developed Countries Benefit

Question 2

Constraints of Globalization

Answer 2

Environmental Costs
Labour Drain
Less Cultural Diversity

Question 3

When countries specialise there will be several gains/benefits/advantages from trade.

Answer 3

1. Lower prices for consumers
2. Greater choice of goods
3. Bigger export markets for domestic manufacturers.
4. Economics of scale through being able to specialise in certain goods.
5. Greater competition

Question 4

Key developments in gloz; Internationally: Two most prominent pro-globalization organizations.

Answer 4

1) World Trade Organization

2) World Economic Forum

Question 5

Key developments in gloz; Regionally:

Closer intro-regional cooperation among member countries.

Answer 5

Association of Southeast Asian Nations Free Trade Association (ASEAN FTA)

Question 6

Factors contributing to gloz in SG.

Answer 6

1. Pragmatic business-oriented government
2. High quality human capital
3. Extensive infrastructure improvement
4. Greater national commitment towards establishing a free trade region
5. Inflow and outflow of direct foreign investment
6. Increasing numbers of state-owned enterprises
7. Rising private consumption

Question 7

Implications of globalization for the individual employee (pg 58)

Answer 7

a) People will have greater access to employment opportunities.
b) Effective labour and employment policies will enhance an individual’s adaptability to the labour force, and improve trade and investment activities that will eventually benefit the work force.
c) There is increasing accessibility to quality education and skills training.
d) Individual employees will have more opportunities to be posted overseas to work.
e) Employees will also benefit from learning the social cultures of the foreign country and get to interact with their peers.
f) Employees also need to be mindful that they face greater competition from foreign workers. Therefore, they need to constantly upgrade themselves to remain employable.

Question 8

Forms of International Business

“International business can either be trading or investing overseas.”

Answer 8

1 International Trade

2 International Investment [Consortium]

Question 9

Ways of a firm controling a business through International Investment.

Answer 9

1. Licensing
2. JoinT Ventures
3. Setting up Foreign Subsidiaries and Branches

Question 10

International Investment.

Licensing.

Answer 10

• Patent
• Franchising
• Copyright

Question 11

Reasons for Firms to trade and invest overseas (pg 60)

Answer 11

1 Market Factor
2 Geographical Factor
3 Resource Factor
4 Governmental/Political Factor

Question 12

Types of trade barriers that the government could adopt:

Answer 12

1. Tariffs
2. Subsidies
3. Quota
4. Embargo
5. Nationalistic Campaign