Question
(a) Globalization of markets is the phenomenon where consumer's preferences and tastes across different societies converge into a global norm.How does this phenomenon lead to
(a) Globalization of markets is the phenomenon where consumer's preferences and tastes across different societies converge into a global norm.How does this phenomenon lead to the merging of historically distinct and separate national markets from the perspective of international businesses? (4 marks)
Answer:
(b) Identify and explain how specific advances in communication and transportation technologies over the past decades have driven globalization of markets? (6 marks)
Answer:
(c) How does globalization of markets for a product or service benefit existing consumers? (3 marks)
Answer:
(d) Usually gains from international trade accrues to all countries irrespective of their size. However according to one specific trade theory, it is especially crucial for smaller economies (i.e. those with relatively small domestic markets) to embrace international trade. Identify this trade theory and explain the rationale (according to this theory) behind the increased necessity of smaller economies to embrace international trade? (5 marks)
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