The US is seen to play a major role in the globalization of culture for three reasons

Question 61

The US is seen to play a major role in the globalization of culture for three reasons. First, the US has a large economy accounting for approximately 25% of the economic output globally. This puts is in a dominant position. Second, the US culture is comparatively homogenous with 97% of the population being fluent in English and over 71% being classified within a major ethnic group. This is in contrast with other countries which lack a common language spoken by more than 30% of the total population. Third, the US has a large market of approximately 300 million consumers. This provides investors with an opportunity of taking advantage of scale economies.

Question 62

Globalization has impacted culture in various ways. First a new class of people characterized by goo education, and training have emerged. This population has led to the development of a common culture that is accepted across the globe. Second a popular culture had emerged impacting global culture. The culture is spread in form of clothing, consumer goods, and entertainment. The popular culture has greatly influenced culture creating almost a common culture. Third, globalization has created a global village where dominant cultures such as America continues to dominate.

Question 63

Nations export goods and services for various reasons. First nations that have its investors selling their products to foreign nations at higher prices compared to domestic prices are motivated to export this especially in the case of developed nations. Additionally, for developed countries, exports help in creating job opportunities. Second, nations are motivated to export when their production in consumed locally with a surplus. Even developing countries at times produce goods that the population cannot fully consume. This requires looking for foreign markets. Additionally, exports in developing nations serve as a means of earning foreign currency essential to buying imports.

Question 64

Importing involves making of profits on products that are consumed in the domestic market bought from other countries. Different nations export for various reasons. First the imported goods are very attractive to domestic consumers yet they are not available locally. To satisfy the consumers, some nations are forced to import. Second, the goods have potential in enhancing the economic wellbeing of a nation. Some nations are motivated to import to ensure that their economy is strong and stable. Third, the fact that some products which can satisfy domestic needs are produced efficiently and less costly in other countries lowering the selling price motivate some nations to import.

Question 65

A nation is considered to have a comparative advantage in goods or services that it has the minimal opportunity cost. This means that a country has a comparative advantage in goods or services that it sacrifices the least in the production process. For example, if a country spends one hour in the production of 10 loaves of bread, and one hour in the production of a bar of chocolate, then it has a comparative advantage in bread production. This is because it is the bread that the company produces with more efficiency. Production of this product will ensure that the country uses its resources in the most efficient manner.

Question 66

The suggestion of the comparative advantage theory on trade specialization does not work in a precise manner in reality. This is because, first, it is close to impossible to find a country that specializes entirely in exportation or production of a certain good or service. Second, every nation has a good or service that it produces in a more efficient manner compared to other nations. Third, developing nations may have the capacity to produce certain goods or services in an efficient manner compared to developed nations but can face challenges in reality in identifying foreign buyers. Such nations can also face challenges in transporting their goods to the foreign market. This forces the developed countries to continue with the production.

Question 67

Different kinds of foreign investments exist today. First is commercial loans. This category involves banks giving loans to governments or foreign businesses. The second form of foreign investment is official flows. These are the development assistance forms that are provided by developed countries to developing nations. Foreign direct investment is the third form of foreign investment. This involves international investors gaining a strong interest in a business established in another country. It may involve building factories, or enhance other facilities. The fourth form of foreign investment is foreign portfolio investment. This compared to FDI is less permanent and investors do not control a stake in a business. The interest is short-term such as investment in foreign stocks and bonds.

Question 68

Rich countries are expected to boost development in poor countries. The idea behind development assistance first, is that it is morally right to provide assistance to people who are struggling to enhance their lives. Second, offering developmental assistance helps developed countries to create foreign markets where they can export their goods and services and at the same tine helps in promoting foreign policy. This has led to the establishment of various institutions that help in providing the assistance such as the development banks, non-governmental organizations, international agencies, as well as governments.

Question 69

Globalization faces six main global environmental issues. First is wildlife. Globalization’s related activities such as human economic activities have led to degradation of animals’ ecosystems as well as the extinction of some species. The second issue is biodiversity loss with some plants and animals’ extinction and destruction of ecosystems in forests, marine, and coastal areas due to pollution. Degradation of the ecosystem which involves relationships of a habitat, plants, animals, and people. Global warming issue involves rising of temperatures causing severe weather. Ozone depletion is the fifth issue that globalization faces. The last issue is pollution caused by a lack of balance between environmental damage and economic development. Increased economic activities increase pollution causing various problems globally.

Question 70

People are driven by various factors to migrate to a foreign land. Some of the push factors are, first poverty and unemployment. Many people leave their homeland to seek a better living. This is one of the major push factors across the world. The second group of push factors includes war, religious and political oppression. These factors push some people to migrate to other countries. A third push factor is environmental problems. For instance issues such as loss of homes due to natural disasters or jobs forces people to cross borders. Poor education, poor medical care, and political instability also push people to cross borders.