Business Assignment: Questions - Essay Example

On the contrary, when a technology company located in America receives a loan from a Bank in Germany it is termed as a credit trade transaction. When a German resident purchases stock from a broker located in U.S, is it termed as a credit transaction. On the contrary, when a U.S resident receives dividend payments from stocks of a company located abroad is a debt trade transaction. When an American tourist is on a shopping extravaganza in Hong Kong, this is also a debt trade transaction. 2) Globalization is known as the process of integration across economies and societies.

The Key drivers of globalization include trade and market, investment and capital flows and information and innovation on poverty (Hill 11). The types of trade flows encompass the flow of services, finance, information and products. The frequency and intensity of this flows related to the increase and decrease forming a trend in globalization. The changing demographics on the global market place occur due to one main reason, competition. Competition in a global market place with the dominance of countries like U.

S in the world economy and the world trade picture. There was also change in demographics with the dominance of world foreign direct investment. Trade flows can be a fundamental factor for determining an emerging market. As an emerging market, a country is seen to embark on an economic reform that will be good for the country. 3) Given the current state of the global economy, for a nation that is emerging and wants to build on their competitive trade position through factor conditions, related and supporting industries, county’s structure, strategy and rivalry and, demand conditions should be highly considered.

This means that the government should act as catalysts of competition but do not get directly involved in the competition. The new trade theory and the international trade theory can help support this claim. As the output of a country expands with specialization its ability to realize economies of scale will increase as unit cost decrease. Countries that have early entrance in a certain type of market have an advantage of fist mover and limited barrier to entry (Hill 23). International trade theory encompasses the difference between countries.

Since factors like trade differ from one country to another, cheap labour can be used as a competitive advantage. This is in reference to Ricardian trade theory which purports difference in labour patterns. Michael Porter’s article on the “Competitive Advantage of Nations” offers a clear insight on how an emerging country should take advantage of its trade position by implementing the first theory of competitiveness. This is based on the causes of productivity in which companies will tend to compete.

A country’s natural resources and pool of labour are deemed as a source of prosperity. Porters concept of “ clusters” advocates for interconnection of firms, companies related industries as a new way of improving economies by setting public policies. 4) Harmonized code is an international standardized coordination of names and numbers that are used to classify traded products that are developed by the WCO World Customs Organization. Product HS CODE Women’s Silk Dresses 500720 Brown rice 100620 Herrings, excluding livers and roe 030310  Men’s Cotton Raincoats 620332  Leather Brief Case 410791 5) With reference to the theory of