Assignment 1 consists of four questions worth a total of 100 possible marks. It constitutes 10% of your final grade. You should complete and submit this assignment after you have completed all the learning activities for Unit 1.

Prepare a 300–350-word answer for each question, and submit all four responses in one Microsoft Word (or compatible) document.

1) What is the basic liberal argument in support of globalization? What are some of the limitations of this argument?

2) According to Joseph Stiglitz (2006) in his video, “Making Globalization Work,” what were the original expectations about how globalization would affect global disparities, inequality, and poverty? What evidence does Stiglitz offer to show that those expectations were wrong?

Reference

Stiglitz, J. (2006). Making globalization work. Google Author Series. YouTube. [Video]. Retrieved from https://www.youtube.com/watch?v=UzhD7KVs-R4

3) What roles do innovation and entrepreneurship play in technological advances and economic development? Does innovation have a better chance of catching on in a market economy or in a planned economy?

4 (a) Explain how Poland’s government was able to avoid the worst effects of the economic crisis during 2008–2009.

(b) From the perspective of international business, what is attractive about the Polish economy? What are the weaknesses and risks associated with doing business there?

5. What are the major benefits and costs to a nation receiving FDI?

6. Describe the major trends that have led to the growth in FDI over the last 30 years.

7 (a) What is the difference between a greenfield investment and an acquisition? Which form of investment is a firm more likely to choose? Be sure to substantiate your answer.

(b) How might the entry of Walmart into the Japanese retail sector benefit that sector? Who could lose as a result of Walmart’s entry?

8. Compare and contrast the internalization theory of FDI and Knickerbocker's theory of FDI (Hill, 2015). Which theory do you think offers the best explanation of the historical pattern of FDI? Why?

Reference

Hill, C. W. L. (2015). International business: Competing in the global marketplace (10th ed.). New York: McGraw-Hill Education