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Ibmg 543: International Trade Question Paper
Ibmg 543: International Trade
Course:Master Of Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2013
KENYA METHODIST UNIVERSITY
SCHOOL OF BUSINESS AND MANAGEMENT
END OF SEMESTER EXAMINATION FOR MASTERS IN BUSINESS ADMINISTRATION AUGUST, 2013
UNIT CODE : IBMG 543
UNIT TITLE : INTERNATIONAL TRADE
TIME: 3 HOURS
Instructions:
Answer question one and any other three.
Question One (Compulsory)
Read the case below and answer the questions that follow.
"Does Globalization Benefit Developed or Developing Country?"
Since its inception, the concept of globalization has inspired numerous competing definitions and interpretations, with antecedents dating back to the great movements of trade and empire across Asia and the Indian Ocean from the 15th century onwards.
Globalization is not a new phenomenon. It began towards the end of the nineteenth century, but it slowed down during the period from the start of the First World War until the third quarter of the twentieth century.
Globalization describes the process by which regional economies, societies, and cultures have become integrated through a global network of political ideas through communication, transportation, and trade. The term is most closely associated with the term economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, the spread of technology, and military presence. However, globalization is usually recognized as being driven by a combination of economic, technological, socio-cultural, political, and biological factors. The term can also refer to the transational circulation of ideas, languages, or popular culture through acculturation. An aspect of the world which has gone through the process can be said to be globalized.
Globalization has various aspects which affect the world in several different ways, such as industrial, financial, economic, job market and political. There is little common ground between proponents and opponents of globalization. The benefits of globalization have been addressed by various scholars. For example, firstly, globalization is a very positive force that lifts countries out of poverty. Secondly, globalization causes a virtuous economic cycle associated with faster economic growth. Next, workers in developing countries now have more occupational choices than ever before. Educated workers in developing countries are able to compete on the global job market for high paying jobs. Production workers in developing countries are not only able to compete; they have a strong advantage over their counterparts in the industrialized world [8]. In addition, the global economy provides a market for the products of cottage industry, providing more opportunities.
Globalization has generated significant international opposition over concerns that it has increased inequality and environmental degradation. For the inequality issues, the first point should be addressed is the income inequality. This has resulted in a growing gap between the incomes of the rich and poor. This trend seems to be greater in the United States than other industrial countries. Income inequality in the United States started to rise in the late 1970’s, however the rate of increase rose sharply in the 21st century; it has now reached a level comparable with that found in developing countries. The next one could be called "brain drains." Opportunities in rich countries drive talent away from poor countries, leading to brain drains. Brain drain has cost the African continent over $4.1 billion in the employment of 150,000 expatriate professionals annually. The Associated Chambers of Commerce and Industry estimates that the brain drain of Indian students cost India $10 billion per year in addition, the issue of sweatshops is widely discussed in recent years. In many poorer nations, globalization is the result of foreign businesses utilizing workers in a country to take advantage of the lower wage rates.
From the perspective of environmental, the rapid increasing of emitter of CO2, reducing of tropical rainforests and nearly running out of minerals, such as zinc, indium, hafnium, and terbium, could be caused by globalization. Next with the development of globalization, the financial interdependency could increase. In addition, some illegal activities could be promoted by globalization, such as drug and illicit goods trade. Some also view the effect of globalization of culture as a rising concern. Along with globalization of economies and trade, culture is being imported and exported as well. The concern is that the stronger, bigger countries such as the United States, may overrun the other, smaller countries’ cultures, leading to those customs and values fading away. This process is also sometimes referred to as Americanization or McDonaldization.
As discussed above, globalization could affect all the fields of today’s world. There is no different in construction industry. The benefits and concerns of globalization have been debated for long a time in many fields. But most of them are focused on the nation or country level. This research will focus on the construction industry to explore the developing country (China) and developed country (Australia’s) construction industries’ performance and position in the international market in hence to explore whether the globalization only benefit developed countries, for the perspective of industry.
Question One (Case Study) Compulsory
Discuss the factors contributing to the growth of globalization.
(10 marks)
Describe the positive and negative impact of globalization to the developing countries.
(10 marks)
Between developed and developing nations, who benefits from globalization? Support your answer.
(5 marks)
Question Two
Using appropriate examples, discuss the factors influencing the balance of payment for a country.
(15 marks)
Discuss the exchange rate systems used by various countries in the world.
(10 marks)
Question Three
Using COMESA as an example, discuss the advantages and disadvantages of membership to common markets.
(15 marks)
Describe the causes of grey markets and suggest how they can be controlled.
(10 marks)
Question Four
Discuss the role of W.T.O in international trade. Use examples to elaborate.
(15 marks)
Discuss the advantage of disadvantages of indirect exporting as a mode of entering foreign markets.
(10 marks)
Question Five
Discuss the political legal forces that influence international trade. (25 marks)
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