International Business Today

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1 What are the major issues of Globalization and why are they important in looking at International Business today?
Globalization has had several major issues that are important when looking at international business today. Globalization has led to economic inequality. Although globalization has led to immense growth in wealth, this wealth is unevenly distributed between countries/ regions. This inequality may promote social and political instability. Globalization has also led to labor exploitation. It is important to look at these issues, for it has led to debilitating working conditions and other issues such as child labor. Globalization has also encouraged the exploitation of the environment (Hill et al., 2017). It is important to look at this issue as it leads to undesirable climatic changes. The other issue with globalization is the spread of Western culture. This spread threatens to erode most local cultures and traditions.2. How did President Nixon ending the Gold Standard in 1971 change the landscape of International Business? Please explain.
The first main change was an increase in the volatility of exchange rates. Before ending the gold standard, exchange rates were more stable as currency values were pegged on gold. The volatility in exchange rates led to increased uncertainty in international trade. Secondly, the change led to the rise of currency speculation and hedging. Here, traders use the fluctuating exchange rates to their advantage. The change also led to the introduction of new financial instruments, such as futures and options. The change further encouraged trade imbalances. Since currencies are not backed by gold or anything else, countries could adjust the value of their currencies to gain a competitive advantage. 3. What was the main point of the End of the Chinese Miracle video that we watched in class? Please explain why the issues of the video are important in understanding trends in international business today.
One of the issu...