Globalization Debate (Scenario) In His International Business Class, Professor Jang Organizes a Debate

question 36

Multiple Choice

Globalization Debate (Scenario)
In his international business class, Professor Jang organizes a debate on the societal effects of market globalization. Juan Prince takes a position that highlights the negative effects of market globalization. He emphasizes how multinational enterprises can wield so much influence that they threaten national sovereignty. He also notes the prevalence of low wages and sweatshop conditions as firms utilize low-cost labor abroad. Juan then describes the detrimental effects of corporate pollution on the environment, and he ends his argument by explaining how market globalization helps homogenize national cultures. Rina Taylor is assigned to counter Juan's position.
-Which of the following is Rina most likely to cite as a counter example to Juan's argument regarding the influence of MNEs on national sovereignty?

• A) the dominating influence of market forces on the global economy
• B) technological advances in computer-aided design of products
• C) the political influence of large firms such as Walmart
• D) the actual GDPs of underdeveloped economies

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Definitions:

Economic Growth

An increase in the production of goods and services in an economy over a period, often measured as the percent rate increase in real gross domestic product (GDP).

Foreign Exchange Market

A global decentralized or over-the-counter market for the trading of currencies, enabling currency conversion for international trade and investment.

Depreciation

The reduction in the value of an asset over time, often due to wear and tear, obsolescence, or market conditions, considered in financial accounting and tax calculations.

Economic Downfall

A significant decline in the economic activity of a region or country, characterized by decreased GDP, high unemployment, and falling prices.