FVC1 WGU Global Business Study Guide Questions WITH COMPLETE SOLUTIONS

Ch 1: What are the characteristics of globalization correct answer: Communication, transportation, transnational businesses, free trade agreements, consumer culture, labor force. *People are interacting across borders. *Lower barriers to trade, expansion of technology, decoupling - trade is happening among lesser developed countries. Emerging markets trading with each other. INTERDEPENDENCE (financial) Ch 1: How do major international institutions facilitate globalization? correct answer: International monetary funds (INF): provides financial stability. Oversight of international monetary systems [Global system of exchange rates and international payments/stability -facilitate other countries buying goods and services from each other] World bank: reconstruction and restructuring economies as an opportunity to reach global solutions to national challenges. * International Bank for Reconstruction and Development (IBRD): supports reconstruction using international capital markets * International development association (IDA): provides long-term low-interest social sector and infrastructure loans to poorest members using foreign aid funds provided by the rich nation members * International Finance Corporation (IFC): Provides loans and takes equity position to private companies of developing countries and works towards developing capital markets in those economies World trade organization (WTO): focuses on lowering/removing trade barriers to encourage trade and globalization to flow smoothly, freely and fairly, and predictably; settles trade disputes; negotiates and administers trade agreements Ch 1: Why is it important for political leaders and institutions to be transparent in responding to global competition? cor