Author Question: Ongoing globalization has reduced the cost and risk of entering foreign markets. Indicate whether ... (Read 43 times)

tatyanajohnson · **on:** Jul 7, 2018

Ongoing globalization has reduced the cost and risk of entering foreign markets.

Indicate whether the statement is true or false

Question 2

In a short essay, discuss the impact of globalization on Africa.

What will be an ideal response?

Question 3

Which of the following statements is true of the above scenario?

A) Foodland has a comparative advantage in producing drinks.
B) Drinkland cannot trade with Foodland because trade is too expensive.
C) Drinkland has an absolute advantage in producing drinks.
D) Foodland should stop producing food and just produce drinks.

Pariscourtney · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

TRUE

Answer to Question 2

Africa is home to the poorest countries. The majority of its one billion people live on less than 2 a day. It is the area least integrated into the world economy and accounts for less than 3 percent of world trade. Although it has abundant natural resources, Africa remains underdeveloped due to many factors including an inadequate commercial infrastructure, lack of access to foreign capital, high illiteracy, government corruption, wars, and the spread of AIDS. One of the most effective ways to alleviate African poverty is to develop more business-based models of development. Several sub-Saharan African countries have recently experienced significant economic growth by increasing international trade in commodities. Africa is a major supplier of petroleum to Europe and the United States. Angola is among the top oil suppliers to China. This activity has developed a ripple effect of economic development. As a result of the boom of certain sectors in Africa, there has been an increase in foreign banks, retailers, and MNEs operations in the continent. Rwanda, had developed business opportunities in sectors as diverse as mining, tourism, telecommunications, and real estate. China and India are beating out U.S. firms and quickly increasing their business dealings in Africa. Chinese companies are investing billions of dollars in the continent. International trade and investment are helping to address many of Africa's most pressing development needs. Samsung has set a goal of 10 billion in African sales and is committed to training 10,000 African engineers and technicians to develop the capabilities needed for success. It will take many more years before Africa achieves a critical mass of infrastructure and business culture sufficient to substantially raise average incomes across the continent.

Answer to Question 3

C