Question

Since World War II, globalization has been driven by two major factors: the decline in barriers to the free flow of goods, services, and capital, and technological change. Business has fueled these trends and has been the beneficiary of these trends. Understanding globalization trends helps businesses identify opportunities and threats in their environment. Understanding these trends will also make the changes much more manageable. International businesses have greater flexibility, more options, and a broader scope to consider globalization of production and globalization of markets. Match the driving force to the correct description and implication for business.
a. declining trade barriers
b. technology transportation
c. declining investment barriers
d. technology computing and communication
Match each of the options above to the items below.
1. lower tariffs and increased international trade in goods and services rapid.
2. FDI growth and new production opportunities and new markets.
3. explosive growth of high-power, low-cost computing and growth in services.
4. faster and cheaper shipping and optimal production.

Answer 1

Answer: a to 1

b to 4

c to 2

d to 3

Explanation:

A to 1

Due to declining Trade barriers largely driven by trade agreements, countries are able to trade on a larger scale than before because goods are able to move in and out of a country with less hindrances. Tariffs are no longer as high and this has spurred companies to trade across borders to take advantage of new markets that do not increase their costs of selling.

B to 4.

With technology being applied to transportation, shipping has been made easier and faster and has also improved access to markets. Since World War II, the world has become smaller due to vessels capable for circumnavigating the world at a fraction of the time that they used to. Now vehicles like cargo planes and bullet trains can carry goods faster and at a cheaper rate thus inspiring people to keep trading.

C to 2

With Investment Barriers being lifted, entities in one country now have easier access to Investment opportunities in another. People and companies who had resources sitting ideal have now found new markets to invest in. This has improved those markets as well as giving wealth to the investors in a sort of win win situation.

D to 3

Computing since the days of the second World War and now are so Stark in difference that people then would probably view computing now as unfathomable. With this growth in computer processing, people around the world are able to trade faster and more efficiently with goods now at the tip of their fingers. Even stocks in Tokyo can easily be traded on by people in Cairo and in Alaska you can order a good from Sri Lanka. This accessibility has greatly improved trade.