1. What is the role of technological change in Globalization?

Technology is the vital force in the modern form of business globalization.

Technology has revolutionized the global economy and has become critical competitive
strategy. It has globalized the world, which drive all the countries to more ethical
standards. This paper attempts to show how Technology revolution is sweeping the
globe and the transition from manual to electronic delivery of services both in public and
private sector leads to advancement of business community throughout the world.
Globalization has led to new markets and information technology is one of the
technologies fostered to the new market in this increasing competitive world.
Technology has helped us in overcoming the major hurdles of globalization and
international trade such as trade barrier, lack of common ethical standard,
transportation cost and delay in information exchange, thereby changing the market
place. Technology has enabled the software experts to work collaboratively over the
network with companies from around the world. The technological advancement has
helped a lot in creation and growth of global market. Multinational Corporations (MNC)
can be seen as a central actor in globalization. Markets have become global at a rapid
pace, as indicated by several kinds of trade extended to foreign countries. The
innovation in host country is often undertaken by MNC based in one country and due to
the technological advancement MNC(s) have expanded to other countries by some
kinds of FDI also facilitating the movement of research and development. The
researchers have analyzed that though the technology has globalized the business but
economically well developed countries have been more benefited. While technology has
created many opportunities for global networks of tasks it is important to look at the
friction in the system to understand the limitations. The sources of friction are many and
could bring the system to its knees. Companies and countries that want to thrive in this
era of globalization will seek to mitigate the abuses, while dealing with the friction.

2. What is foreign direct investment of importance?

A foreign direct investment (FDI) is an investment in the manner of commanding

ownership in the company in one nation by an existence based in the different nation. It
is thus recognized from an international portfolio purchase by a perception of direct
monopoly.
Foreign direct investment is critical for developing and emerging
market countries. Their companies need multinational funding and expertise to expand
their international sales. Their countries need private investment in infrastructure,
energy, and water to increase jobs and wages.

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 Foreign direct investment benefits the global economy, as well as investors and
recipients. Capital goes to the businesses with the best growth prospects, anywhere in
the world. Investors seek the best return with the least risk. This profit motive is color-
blind and doesn't care about religion or politics that gives well-run businesses,
regardless of race, color, or creed, a competitive advantage. It reduces the effects of
politics, cronyism, and bribery. As a result, the smartest money rewards the best
businesses all over the world. Their goods and services go to market faster than without
unrestricted FDI.
Individual investors have the potential to achieve greater portfolio efficiency
(return per unit of risk), as FDI diversifies their holdings outside of a specific country,
industry, or political system. Generally, a broader base of investments will dampen
overall portfolio volatility and provide for stronger long-term returns.10
Recipient businesses receive "best practices" management, accounting, or legal
guidance from their investors. They can incorporate the latest technology, operational
practices, and financing tools. By adopting these practices, they enhance their
employees' lifestyles. That raises the standard of living for more people in the recipient
country. FDI rewards the best companies in any country. It reduces the influence of
local governments over them.
Recipient countries see their standard of living rise. As the recipient company
benefits from the investment, it can pay higher taxes. Unfortunately, some nations offset
this benefit by offering tax incentives to attract FDI.2
Another advantage of FDI is that it offsets the volatility created by "hot money."
That's when short-term lenders and currency traders create an asset bubble. They
invest lots of money all at once, then sell their investments just as fast. That can create
a boom-bust cycle that ruins economies and ends political regimes. Foreign direct
investment takes longer to set up and has a more permanent footprint in a country.

3. Do you think the pandemic of 2020 hour change the global market landscape?
Explain

Definitely, even here in our country our economy suffered a lot how much more
globally.
The COVID-19 pandemic has spread with alarming speed, infecting millions and
bringing economic activity to a near-standstill as countries imposed tight restrictions on
movement to halt the spread of the virus. As the health and human toll grows, the

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economic damage is already evident and represents the largest economic shock the
world has experienced in decades.
The June 2020 Global Economic Prospects describes both the immediate and
near-term outlook for the impact of the pandemic and the long-term damage it has dealt
to prospects for growth. The baseline forecast envisions a 5.2 percent contraction in
global GDP in 2020, using market exchange rate weights—the deepest global recession
in decades, despite the extraordinary efforts of governments to counter the downturn
with fiscal and monetary policy support. Over the longer horizon, the deep recessions
triggered by the pandemic are expected to leave lasting scars through lower investment,
an erosion of human capital through lost work and schooling, and fragmentation of
global trade and supply linkages.
The crisis highlights the need for urgent action to cushion the pandemic’s health
and economic consequences, protect vulnerable populations, and set the stage for a
lasting recovery. For emerging market and developing countries, many of which face
daunting vulnerabilities, it is critical to strengthen public health systems, address the
challenges posed by informality, and implement reforms that will support strong and
sustainable growth once the health crisis abates.
The pandemic is expected to plunge most countries in recession in 2020, with
per capita income contracting in the largest fraction of countries globally. Advanced
economies are projected to shrink 7 percent. That weakness will spill over to the outlook
for emerging market and developing economies, who are forecast to contract by 2.5
percent as they cope with their own domestic outbreaks of the virus. This would
represent the weakest showing by this group of economies in at least sixty years

4. What is a balance of trade? Explain its importance in Globalization

Balance of trade (BOT) is the difference between the value of a

country's imports and exports for a given period and is the largest component of a
country's balance of payments (BOP).
Economists use the BOT to measure the relative strength of a country's
economy. The balance of trade is also referred to as the trade balance or the
international trade balance. A country that imports more goods and services than it

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exports in terms of value has a trade deficit. Conversely, a country that exports more
goods and services than it imports has a trade surplus. The formula for calculating the
BOT can be simplified as the total value of imports minus the total value of exports. 
The integration of national economies into a global economic system has been
one of the most important developments of the last century. This process of integration,
often called Globalization, has materialized in a remarkable growth in trade between
countries.
Nations trade because they don’t produce all the products that their inhabitants need.
 They import those that they need but don’t produce and export those that are
needed elsewhere.
 To understand why certain countries import or export certain products, you need
to realize that not all countries are good at producing or are able to produce the
same products.
 The cost of labor, the availability of natural resources, and the level of know-how
vary greatly around the world

Because of this, globalization arise and it’s a very important factor for an economy to
boost.

The first wave of globalization came to an end with the beginning of the First World War,
when the decline of liberalism and the rise of nationalism led to a slump in international
trade. After the Second World War trade started growing again. This new – and ongoing
– wave of globalization has seen international trade grow faster than ever before. Today
the sum of exports and imports across nations amounts to more than 50% of the value
of total global output.

5. Do you think a country can survive economically without trading with other countries?
Justify

Depends on your definition of “survive”. If you define country as government,

then a country exist as long as it has enough resources to maintain country wide
administration and in some cases, a standing army. Large countries (such as china or
United States) are unlikely to survive complete isolation since its consumption are totally
dependent on another country. While small countries such as an island nations may
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survive total isolation providing that the government are strong enough to quell internal
rebellion. Global trade today have become inseparable part of modern counties. Taking
away global trade from a country is like taking away electricity from everyday live. It will
degrade comforts and quality of life significantly but some of us who’s hardy enough
may survive.
There are many countries that has closed economy before and even now they
can closed their economy because they are capable of being independent and isolated
But, looking at history though we notice that long-long before "global trade
liberalization" policies became an officially declared goal and agenda of the powerful
economies of the planet, international trade existed and expanded. For thousands of
years humans are observed to trade with abroad -and no, nobody forced them to. So it
appears that international trade gets chosen by human societies as a way to prosper.
And because this choice has been revealed time and again, through different eras,
civilizations, cultures, productive capabilities etc., it makes it difficult to think that a
country could obtain a comparable level of prosperity without international trade.
Survival, though, is another matter, since it is much easier to survive than to
prosper as an individual or as a country.

Bibliography

https://www.worldbank.org/en/news/feature/2020/06/08/the-global-economic-outlook-
during-the-covid-19-pandemic-a-changed-world
https://www.dentons.com/en/insights/alerts/2020/march/11/covid-19-and-its-impact-on-
the-global-economy
https://hbr.org/2020/03/what-coronavirus-could-mean-for-the-global-economy

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https://www.investopedia.com/terms/b/bot.asp
http://www.globalization101.org/the-trade-balance/
https://ourworldindata.org/trade-and-globalization
https://2012books.lardbucket.org/books/an-introduction-to-business-v1.0/s07-01-the-
globalization-of-business.html
https://www.wallstreetmojo.com/closed-economy/