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1. What is globalization?

Answer No.1:

Globalization is the interaction and the process of integration worldwide among different people, governments and companies. It is a shift of world economy towards potential markets and production. McDonalds, Starbucks are a few examples of Globalization, where they have shifted from their own country towards other countries for potential markets(Gaies, Goutte and Guesmi, 2018). The three drivers that helped fuel globalization in the past few decades are:

1. Free flow of goods and services: Foreign Direct Investment: After World War 2, countries started investing in the other countries with the help of FDI, as high tariffs were now reduced. Under the umbrella of GATT and Uruguay Round patents, trademarks, low tariff rates have made possible for the companies to go worldwide.

2. Technological Factors: As the emergence of Internet of Things, good communication networks, easy transportation etc. has increased, the companies are also feeling free to get in touch with the other countries.

3. The strategies of MNC's: there is a rise of Mini Multinational Companies due to the FDI's; many companies have also set up joint ventures with other MNC's in different countries which drive the companies to go for globalization.

Case against Globalization: in 1999,European Union banned the import of beef from U.S. because sheep workers of France didn't wanted McDonalds to enter into their country. The sheep workers thought it would be a problem for their business and it would exploit the health environment of the people as well as beef was not considered as hood food those times. But today there are more than 1,200 McDonalds Restaurants in France. After a protest of 20 years both the countries are earning a good amount (more than $700 billion dollars FDI). Here, it could be seen that benefits outweigh the costs(Greider, 2009).

2. Explain the role of global intuitions in governing the globalization process:

Answer No. 2:

World Bank: plays a vital role in governing the globalization process as it focuses on securing long-term funding by the countries investing. The World Bank gives advisory services to the countries and companies in need, the bank are always into creating right policies and framework for the institution. It is also offering debt relief to the low-income countries and robusting the financial services.
United Nations: plays an important role in developing globalization by promoting, formulating and then implementing the process of globalization to the countries and companies those who want to get globalized. UN has promoted concepts like Aglobal housekeeping etc. for defining the platform with all the norms needed to be globalized for harnessing the potential to get globalized.

International Monetary Fund: IMF with UN has promoted International Economic Cooperation. IMF has an implication that through Globalization a country can contribute in the reduction of the poverty globally. IMF with other core Financial Sectors are putting efforts in strengthening financial sectors like FSAP. It is laying the moral foundations of recognizing the roles of Organizations of the Civil Society(Azizi and Noruzi, 2011).

World Trade Organization (WTO): Since 1995, is addressing and developing issues such as rights of the labors, protection of consumers, protecting the health and environment, elusion and evasion of taxes. This judiciary body was established to solve the disputes in the trade system. It has started to introduce the Global Taxes towards the public global goods and creating the Economic Security Council.
Forums such as such as G7, G20, etc: these are the forums that are internationally developed for the Governments and the Central Banks governors from European Union and 19 Countries. This was founded in 1999 with aim for discussing the policies regarding the promotion of proving financial stability. In this leaders meet annually for discussing and solving matters related to global economy and International Security.

3. What is the meaning of the term political economy?

Answer No. 3:

Political economy stresses that a country's political and economic-legal systems are interdepending and influence with one another.
Explain about Adam Smith's ‘invisible hand'in The Wealth of a Nation? Adam Smith in 1776 from his passage from "Wealth of Nations" has put that any individual who wants his gain is always led by an invisible hand, which he has no part of intentions. It is not worse for the society for not being a part of it

What is a mixed economy? Mixed Economy is the economy state that blends private and state institutions with regulatory oversight. It is a capitalist economy with private ownership in the means of production for profit seeking.In mixed economies, governments tend in taking into ownership of state those who are the troubled firms but whose operations are continued, can be important for national interests. Hungary is an example of Mixed Economy combining economic planning with the forces of market.
Difference between common law vs civil law? Common Law system is the old traditional system of law prevalent in Britain and now in U.S. it is based on the traditions and Customs, it refers to the legal history of a country. Whereas Civil Law refers to the detailed structure of law organized in codes. Countries like Germany, Russia and Japan follow the Civil law structure(Kastelle, Merchant and Verreynne, 2015).

4. Explain:

Answer No. 4:

Anti-trust laws: these laws were made in the year 1980 and 1915 to encourage the free enterprise. These were incorporated to prevent the large corporations of business serve monopolies. These were institute to curb and restrict competitions. It promotes the just and fair competition for the sake of the customers.

Foreign Corrupt Practices Act: FCPA was established in 1977 in United States. It is the US Federal Law which states that the addresses would be for accounting transparency requirements under the Act of Securities Exchange (1934) and for concerning the bribery of the foreign officials. It was amended in the years 1988 and 1998, for being into the subject concerns of that whether FCPA discourages the companies of US from investing abroad(L. Hill and M. Hult, 2019).

Trade-Related aspects of Intellectual Property Rights (TRIPS): it is an agreement that is legal internationally among all the nation members of the WTO. It became effective from 1st January 1995. It specifies the enforcement of the procedures, the remedies, and the dispute resolution procedures for the protection of all intellectual property rights. Its objective is to contribute in the promotion of innovation of technology so that the producer and the user both should be benefitted through it in a conducive manner.

Difference between patent, copyright, trademarks as forms of intellectual property protection:Any intellectual Property is an intellectual property for an individual or a group of members. By patent an intellectual Property it means that for a specified period of time the inventor has all the rights for manufacturing, selling or using that invented product. By trademarks, the inventor of the product gets a name or a design or a logo that is registered officially to make difference and designate between products of same kind. Copyrights are the legal rights for the authors, writers, composers etc. to get their work publish and differentiate(Rizvi, 2011).

Development of countries was historically measured by economic terms. Explain the terms:

Answer No. 5:

Gross National Income (GNI): To measure the Economic Development of a country One can measure the GNI per head of the population of that country. GNI measures the annual income gained by the residents of a country. It is to measure the economic activity of a country. Japan is considered to be one of the developed and richest country in 2016 as its GNI per capita was 38,000 and China is considered to be developing and poor country as its GNI is only $8,260.

What is the difference between Gross Domestic Product (GDP) and GNI? GDP is the measure the economic output of a country whereas GNI is the measure of the economic development of a country. GNI comprises of GDP with the total income earned as the dividends or interests from other countries. GDP depends upon the location of the country while, DNI depends upon the ownership income of the population of that country(Sutton-Brady, Voola and Yuksel, 2010).

Purchasing Power Parity (PPP): refers to an economic theory that helps in measuring the variables that are economic in nature of different countries. It is done to distort comparisons among the non-relevant exchange rate. It also suggests that the two countries exchange rate is equal to the ratio of purchasing power of the country to the currencies.

Economist Amartya Sen introduced countries' development measures in broader terms. Explain what Human Development Index (HDI) is: HDI was developed by Nobel Prize Winner Amartya Sen in 1990 by extending the Index developed by economist Mahbub ul Haq. It is used to measure and classify a country under three categories: Developed Developing or a country as under developing. It is also used to measure the education, literacy level and the GDP as per capita income.

6. Explain

Does geography has anything to do with countries economic development? [This is not in the book, but check Jared Diamond's guns germs steel. Also check Ashraf and Galor's role of genetic diversity in economic development]

Answer no. 6: Yes, the economic development of a country depends upon the geographical conditions of a country, the reason behind this is that a country being the geographical region with fertile land, good access of rainfall are more likely to get developed because of their high yielding crops. Countries on the region where the access to the market is easy, gain more economic development like America and China. Countries like Ethiopia are less developed due to the reason that they belong to mountainous region where trading is expensive. Countries lying in the region, from where they can get natural resources easily like UAE gets oil as a natural resource are lively to get economic development(L. Hill and M. Hult, 2019).

Do Muslim dominated countries embrace ‘western style' development? Fukuyama's end of history theory vs Huntington's clash of civilizations theory

It cannot be stated surely that all Muslim countries embrace western style development. It depends upon the government and the public of that particular country. Some Muslim countries are developing and embracing the western style while others do not. The clash of civilization was a hypothetical case that states that in future wars would be not between countries but would be in between cultures. Samuel P. Huntington, American Scientist and politician suggested in a lecture I 1992 at an American Institute that the primary source of wars in the future would be religious identities and cultures. Francis Fukuyama in the end of history theory states that a particular social, economic or political system that may have developed will be the end point of the socio culture in view of humanity(Sutton-Brady, Voola and Yuksel, 2010).

7. What is culture?

Define values, norms, folkways, mores

What is ethnocentrism?

Answer no. 7:

Culture is termed as the social behavior of the people residing in a society. It consists of the social guidelines and the norms that are meant by the society for the people living in it. Values are termed as the ideas that people of a particular community believe to be right or wrong. These values totally depends upon the background of the person believing in it like, the schooling, religion, neighborhood all builds the value system of a person. Norms are the rules and the regulations that one believes to be right or wrong. Norms can be considered as different guidelines that people have to behave while dealing in a particular situation. Culture also comprises of folkways, now folkwaysare the visible symbols and behavior that shows an outward expression of the values imbedded. Mores are also visible representations of the values but they are more significant to observe than the folkways. They are the moral representation of values of a person. Like, Americans can openly drink and it's their culture but its vice-versa in UAE. All are very important to understand while having a business deal in order to crack it.

Ethnocentrism is the process of making judgment and preconceptions while judging others on the basis and standard of own culture. It is the act when someone judges others based on its own culture and values.William G. Sumner defines it as considering one's own group superior to the other(Levi, 2018).

8. Economic / developmentimplications of religions:

Answer no 8:

Islam towards market based system?Islam is receptive towards the market based system if the market system behaves the way of Islamic customs and beliefs. The corrupted businesses are unlikely to be welcomed in the Islamic countries as they do not prefer it as per their own customs(L. Hill and M. Hult, 2019).

Islam towards banking. What is riba (similar to usury) and mudarabah: According to Islam taking interest is not into their customs. Under Mudarabah, the scheme of profit sharing, bank doesn't charge loans rather it takes profit from the scheme it has given loan to. Riba is mentioned in the verses of Quaran which states that gains made through exploitative manners are unjust for Islam.
Hinduism towards engage in entrepreneurship: Hindus believe in the caste system and in reincarnation. According to Max Weber, Hinduism does not believe in the entrepreneurial activities that are only meant for creating wealth. According to Mahatma Gandhi, all caste and creeds are equal. But modern India is full of entrepreneurs from every section of the society irrespective of the caste system(Kastelle, Merchant and Verreynne, 2015).

Buddhism towards globalized economy and large scale institutions and MNCs: Buddhism was founded by Gautam Buddha, who himself left all the wealth for the sake of real knowledge and hence Buddhism does not favor the gatherings of money. There is very less entrepreneurial stress on this section of society. It is antithetical towards large scale institutions or MNS's. According to Buddhism, if economy will grow it would be difficult to appreciate people on the very natural grounds.

Confucianism towards works ethics. What is Loyalty, guanxi, honesty: Confucianism is the ethical system of the country China. It teaches the people of China to attain salvation through the right action. Loyalty is considered to be the sacred by being loyal towards their superiors. In modern time also loyalty is considered as being loyal towards the heads of an organization keeps conflicts aloof. Guanxi is considered as relationship networks in the business organizations. Honesty is considered very important in Chinese organization as it binds organizations not to break any contractual obligations(Bartley, 2015).

9. Explain:

ANSWER NO. 9

Tragedy of commons: as the name suggests it is a situation when an individual member of a group in a shared system of resource acts independently for their own interest and they don't want to do common good for all the users instead they believe in their own interest. Also it was considered as sustainability test. This phrase originated in 1833 by William Forster Lloyd, who tried to explain this term by a hypothetical example of grazing of animals over a common land and depleting the land for others.It is also considered to issues such as sustainability

Foreign Corrupt Practices Act (FCPA). Is "facilitating payments" allowed under FCPA? FCPA in U.S. is an act to put exception on bribery from the foreign officers. This was objected by many business of U.S. and suggested that this outlaw will be a competitive disadvantage for the firms. Then it was amended and allowed facilitated payments for ensuring the standard treatment that should be offered to a business rather than a payment made to secure contracts(Cherp, Jewell and Goldthau, 2011).

Ethical dilemma: is considered as confusion in making a choice between two morally corrected imperatives. In the business world, sometimes the managers feels a lot more pressure from the managements, customers etc., that it is very difficult to choose the correct perspective. These moral obligations are always unclear and are not sorted as there exists no worldwide agreements which can make things ethically correct. An American Manager will find it unethical to see a 11 years old boy working and would ask for his replacement whereas for some it would be ethically correct to give employment to an 11 years old boy who is the only bread winner for him. So, some Ethical dilemmas are ethically acceptable for some while not for others(Barad and Patel, 2012).

10. Explain the following approaches to Ethics:

Answer No. 10

Straw Man approach: are ethical statements given by scholars to demonstrate inappropriate rules for decision making ethically for a MNC.
a. Friedman Doctrine: was given by the Nobel Prize winner Milton Friedman in 1970 in an article in The New York Times. It says that to earn profits is the social responsibility of a business without any fraud attempt.

b. Cultural relativism (When in Rome, do as the Romans): a business should run according to the ethics of the place it is running its business. It believes in operating in the same way as the ethics and culture of the place suggests like, if slavery is ethical in a country then it is not ethically wrong for the business to use slavery in that country.

c. Righteous moralist: suggests that managers should follow their own ethics of MNC's or the ethics of developed countries while working or dealing in other countries too to maximize their profits.

d. Naïve immoralist: suggests that in a host country the manager must follow the ethics of the host country if all the other businesses are doing so, in order to run his company.

Utilitarian approach:was given by David Hume in the year 1711 to 1776, Jeremy Bentham in the year 1748 to 1832), and John Stuart Mill in the year 1806 to 1873, suggests that the actions that are morally correct or incorrect is to be determined by their results or consequences. An action is said to be of good balance if its consequences are good over the bad ones.

Kantian ethics approach:was given by Immanuel Kant in the year 1724-1804 suggests that all workers should be respected as people are not machines. Ethically they should be treated well.

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