Question

"international business plays an important role to face the challenge of unequal distribution of natural resources." Do you agree with the above statement. Give reason in support of your answer.

Answer 1

Explanation:

INTRODUCTION

One of the most dramatic and significant world trends in the past two decades

has been the rapid, sustained growth of international business. Markets have

become truly global for most goods, many services, and especially for financial

instruments of all types. World product trade has expanded by more than 6

percent a year since 1950, which is more than 50 percent faster than growth of

output the most dramatic increase in globalization, has occurred in financial

markets. In the global forex markets, billions of dollars are transacted each day,

of which more than 90 percent represent financial transactions unrelated to trade

or investment. Much of this activity takes place in the so-called Euromarkets,

markets outside the country whose currency is used.

This pervasive growth in market interpenetration makes it increasingly difficult

for any country to avoid substantial external impacts on its economy. In

particular massive capital flows can push exchange rates away from levels that

accurately reflect competitive relationships among nations if national economic

policies or performances diverse in short run.