What is the best example of modern globalization as it relates to business?
O A Thai food restaurant in Boston uses peppers imported from Thailand.
O The customer service operation for an American computer manufacturer is based in Ireland
O Tourists from Japan vacation in Florida
O A young man in Canada buys his fiancée a diamond mined in South Africa.
Answers
Answer:
Spice Route. Salt Road. Trans-Saharan Trade Route. Trade has been an aspect of the human experience for literally thousands of years, with merchants hazarding mountains, rivers, deserts and seas to obtain rare commodities. However, the environment pre-20th century traders were operating in was significantly different than our current business environment. In this section, we will draw a distinction between international trade and globalization and discuss the implications for businesses, workers and societies. This section will also introduce the concepts of comparative and absolute advantage and illustrate how these concepts relate to opportunity cost and serve as the basis for making specialization and trade decisions. This section concludes with a video and interactive exercise that reinforces learning and the relationship between international trade, productivity and standards of living—be it on Gilligan’s Island or in the real world.