BUSN 3100(GLOBAL BUSINESS ENVIRONMENT)DUE DATE: – 06 February 2018ASSIGNMENT #1SUBMITTED BY – BALWINDER SINGH (300282176)?QUE (1): – What are the drivers of globalization? Briefly explain how each has contributed to globalization?ANS (1): – Globalization makes the whole world a global village today. It provides opportunities to the developing countries to become developed by dealing with the other developed nations. Today we are going to talk about the drivers of the globalization. There are following drivers of the globalization which gives their contribution in globalization – • Falling barriers of trade and investment• Competition • Technological innovations• FlowsFalling barriers to trade and investments: – It helps in to reduce the barriers in way of trade within the different nations. The big barrier in trade among the nations was high rate of tariffs in trade. To promote the free trade by reducing tariffs, General Agreements on Trades and Tariffs (GATT) comes into existence in 1994. After that World Trade Organization(WTO) had been established in 1995. It promotes free trade among the member nations and settle trade disputes of different nations. This is the biggest contribution of WTO into the globalization. Trade agreements between different nation are SAARC, NAFTA, EU and ASEAN.Competition: – competition among the different nations promote globalization. For the economic growth of the country they sell their domestic products into the international market. It creates the competition among the different countries at global level. So, producer use global strategies to compete with the international market to increase the GDP and Per- capita income of the country. All the countries dealing in international market and gives their contribution in globalization. BRICS and CIVETS are the best example of global agreements. Which deals in international market and compete with other nations products.Technological innovation: – In 21st century, technological innovation has a big contribution in globalization. The internet and web make easier to deal with the any part of the world. We can do communication through making video calling and conferences. Sea shipping, air shipping is the best example of technological innovation which puts their contribution into the globalization. For example, Amazon is a global dealer in modern days, we can buy anything from the any part of the world by ordering online through the internet. It is only become possible through globalization and technology.Flows: – Trade flows, trade partnership and trade priorities of different countries contributes to the globalization. Trade partnership like U.S – China, Asia – Africa, South – South and EU helps low and middle-income countries to deal with the high-income countries to become developed. Trade priorities are the needs which a country wants in a agreement, for example in NAFTA agreement U.S, Canada and Mexico has different trade priorities which makes the agreement successful.QUE (2): – Pick a country and explain how each of these drivers has facilitated in increased global business for that country?ANS (2): – I am choosing the United States as the country for which I am going to talk about how the drivers of the globalization facilitated in increasing global business for this country.• First, I talk about the falling in the barriers of the trade, due to the inducement of world trade organization(WTO), tariffs on the trade were reduced and settlement of the trade dispute increase the business on the global level among the member nations. NAFTA and APEC are two biggest free trade agreements which promote the global business among the different countries by providing tariff free trade. NAFTA include North American countries Canada, Mexico and United States. APEC stands for Asia – Pacific Economic Cooperation it includes Asia – Pacific regional countries.• Competition is another important driver of the globalization which promotes the business on the global level. Different countries sell their domestic products in the international market to increase the GDP and Per capita income of the country. It creates a competition among the other countries who deals in the international market. In United States there are number of industries who deals in international market and meets with the competition on international level. It encourages industries to make quality products to survive in international market. The best example of this is Apple. It is a company of United States who deals with international market and according to the competition in the market they sell their products on global level and get success.• With the inducement of the technology, a person can access whole the world through the internet. Global business would only become successful through the technology. The technology which mostly promote global business in United States is the cargo, sea and air shipping to the different parts of the world. In old days, cargo takes 10 -15 days to reached at the destination but in modern days it is possible to complete shipping in 9 -10 hours. This is only possible through the technology. So, technology increase the business of a country on the global level.• Trade flows and trade partnerships with other countries encourage home country business to do business on global level by meeting the demands of the other countries. In United States different agreement made to establish the partnership with other countries for example NAFTA, EU and APEC. With these partnerships U.S can do trade with member nations through reduced tariffs. So, it encourages to expand the domestic business to the global level.QUE (3): -Describe the important role of international trade for Canada’s economy. What does the Canadian government do to promote trade with other countries? Visit the federal or provincial government agency responsible for international trade and provide specific ways government gets involved in promoting local firms?ANS (3): – International trade has an important role in the economy of the Canada. Import and export helps in to make balance in the economy. One third of the economy of Canada is depend upon the export and One half of the productivity depend upon the imports from the other countries. Canada export natural resources to the Asian countries and the other parts of the world and gets inputs for the production of the other goods needed into the domestic country. So, it balanced the overall economy of the Canada.Canadian government made many free trade agreements with the other countries to promote the international trade. Which becomes successful and helps in the economic growth of the country. These free trade agreements are listed below – • General Agreement on Tariffs and Trade (GATT)• Canada became a member of World Trade organization (WTO) on 1 January 1995.• Trans pacific partnership (TPP)• North America Free Trade Agreement (NAFTA)• Brazil, Russia, India, China and South Africa (BRICS) and Columbia, Indonesia, Vietnam, Egypt, Turkey and South Africa (CIVETS) are growing and emerging countries in international trade.• European Free Trade Association (EFTA)Federal government held the power to solve the affairs related to the international trade and Ministry of International trade in every province is responsible for the trade partnership and the dispute related to the international trade. Government provide tariff free trade to the local firms and give opportunity to them to meet with the challenges of international market. Government also provide subsidies to the particular industries like agriculture to promote the industry and sell the domestic products into the international market. It helps in to promote local firms to deal with the international market and also increase the economic growth of the country.