Practical 3

Question 1

international modes of operations

Answer 1

Goods export & import
Service export & import
Investments

Question 2

The Advantages of Globalization

Answer 2

• FDI
  (tech transfer higher productivity and growth of global companies)
• Job creation in host countries reciving FDI
  (many of these “inward” investment jobs
  are highly skilled cause inward transfer of technologies to host countries; skills then spread through the host economies)
• Technology innovatoion
  (Access to more info and new technology development, improving economic
  output ( new products and more efficient processes) and environmentally friendly.)
• Economies of scale
  (Enables large companies to reduce costs, improve profits and reduce prices, but can hurt small businesses attempting to compete domestically)
• Developement of weaker economies.
  (Poor countries sell their goods and services to richer countries, opening them up for development and prosperity)

Question 3

Criticism of globalisation:

Answer 3

• Threats to national sovereignty
  (- National interests vs. proliferation (spread) of international agreements,
  – Worker & environmental protection vs. competing with countries with less protection
  – Small economies’ overdependence and inadequate capacity to deal with globalization
  – Cultural Homogeneity)
• Environmental stress
  (More use of natural resources and carbon footprint vs. eco-friendly technologies and global cooperation)
• Growing income inequality and personal stress
  (Greater access to low-cost labour in poor countries has reduced the real wage growth of labour in rich countries and job opportunities)

Question 4

Is regionalisation replacing globalisation?

Answer 4

NO
WTO suggests increase in
Regionalization trend during
2012 – 2016 but stabilization in
recent years. Resilience of Asian Exports and global Trade position
preventing further growth in regionalization.

Question 5

Impact of Covid 19 on Globalization

Answer 5

Covid-19 blow to globalization has turned out to be much smaller than the decline caused by the 2008-09 global financial crisis

Question 6

Factors impacting the future of globalization:

Answer 6

• Behavior of national governments
• Attitudes of consumers
• Mindset of executives and key stakeholders in
  multinational companies
• Economics of business globalization and supplychain management
• Emergence of Political and Trade conflicts

Question 7

Further globalization is inevitable even with disruptive events such as Pandemics and Wars.
True or False

Answer 7

True

Question 8

IB will grow primarily along regional lines rather than global lines
True or False

Answer 8

True