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MNB 3701 ASSIGNMENT 2 2022/03/30

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Two major types of globalisation are described by Aregbeshola (2017, 7), namely market and production globalisation. In essence, market globalisation involves merging of previously discrete and independent markets into a global structure. Market globalization thus enables international trade via removal of trade barriers. Differing consumer tastes from various parts of the world set new global standards, which enable them to receive the same products from different companies. Globalization of markets also leads to stiffer competition as businesses compete for customers from different parts of the world. (2) Production globalisation enable companies to source goods from various parts of the globe in order to take advantage of differences in quality, cost and the performance of things like raw materials, land, capital and labor. Companies become more competitive as they develop their respective international production networks.

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MNB 3701
ASSIGNMENT 2
2022/03/30

, TABLE OF CONTENT
1. QUESTION 1 ........................................................................................................................2
1.1. Various types of globalisation........................................................................................2
1.2. World Bank: Worldwide Governance Indicators ............................................................2
1.3. Justice theories as theory of business ethics ................................................................3
2. QUESTION 2 ........................................................................................................................5
2.1. Examples of technology and innovation influencing the business world ........................5
2.2. Aside from innovation, describe 5 other drivers of competitiveness ..............................6
2.3. Need for a global information system ............................................................................6
3. QUESTION 3 ........................................................................................................................8
3.1. Explain what transfer pricing entails ..............................................................................8
3.2. The types of foreign exchange exposure MNC can encounter in foreign exchange
market .....................................................................................................................................8
3.3. Contrast forward exchange contract with foreign currency options with examples ........9
3.4. Role of capital market in the economy ........................................................................10
4. BIBLIOGRAPHY .................................................................................................................11
ADDENDUM A: DECLARATION ...............................................................................................13




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