Exam (elaborations) MNB3701 - Global Business Management IA COMPLETE GRADE A+

Anti-free trade arguments maintain that free trade agreements can result in: 1. an incremental increase in a country’s factory employment 2. a reduction in European Union membership 3. exports exceeding imports in a country’s economy 4. the stimulation of NAFTA’s trade goals. Question 2 Globalisation is often crystallised as “cross-border” trade and investments. But, this provides a limited perspective on what globalisation is. What, then, is globalisation? 1. Collective opposition to oppression, exploitation and injustice. 2. An attempt to achieve equilibrium in a country’s political economy. 3. It represents a shift towards a more interdependent world economy. 4. It constitutes politically influential opposition to poverty. Question 3 “Kenya’s growth potential is a sure reflection of the high growth being experienced in East African economies”. It all points to the drivers of globalisation at work. These drivers include the following, EXCEPT: 1. Changes in the technological environment. 2. The appropriation of globalisation gains, by rich countries. 3. The region’s growing middle-class. 4. Advances in transportation technology. Question 4 The function of GATT was to: 1. protect countries from the imposition of heavy, progressive, taxes. 2. promote dominance in global manufacturing, for member nations. 3. lower barriers to the free flow of goods, services and capital among nations. 4. help countries build a diverse economy, a democratic political system and a strong safety net. Question 5 The primary purpose of the World Bank (WB) is: 1. encourage the economical dispersion of production activities. 2. alleviate poverty and encourage economic development. 3. monitor the partial exportation of finished products. 4. regulate international production costs. Question 6 The Bretton Woods agreement signified the following most noteworthy achievement: 1. The demise of the fixed exchange regime. 2. The introduction of a set of rules and regulations aimed at facilitating international trade. 3. The provision of a US dollar-based monetary system: ensuring the convertibility of other currencies into the US dollar. 4. The establishment of an independently floating currency arrangement. Question 7 In terms of contemporary currency arrangements, an independent float refers to: 1. Trade balance adjustments. 2. Pegged exchange rates. 3. Flexible rates, relative to a single currency. 4. Exchange rate determination through market forces