Monizha Selvan

BBA 1909-1442
Tutorial week 2
1. Describe the U.S role in the world economy?
 The United States has the largest economy in the world, accounting for 24% of the
world’s GDP in 2017. It is the most important export of goods and services for one –
tenth countries around the world. The United States also known as prime market for
lower – income countries and higher income countries.

2. How do differences in income levels and income distributing among countries affect
international businesses
 One important source of income statistics is the World Bank, which divides the world’s
countries into high-income, middle-income, low-income categories. High-income
countries are those that enjoy annual per capital incomes of at least $ 9,266. Middle-
income countries have per capital incomes of more than $ 755 but less than $ 9,266.
Low-income countries have per capital income of $ 755 or less. (Per capital income is
usually measured by dividing a country’s gross domestic product (GDP) by its
population). Middle-income and Low-income countries are less attractive to
international business because they offer less consumer demand and lack the public
infrastructure necessary for reliable production and distribution of goods and services.
3. What role did MITI serve in the Japanese economy?
 Japan’s rapid growth during the past 50 years is due in part to the partnership between
its Ministry of International Trade and Investment (MITI) and its industrial sector.
MITI has used its formal and informal powers to guide the production and investment
strategies if the country’s corporate elite. For example, immediately after World War 2,
MITI encourages Japanese firms to concentrate their efforts on such basic industries as
steel and shipbuilding. As other countries entered these industries, MITI and Japan’s
MNCs shifted their focus to producing automobiles consumer electronics, and
machinery.

4. What is keiretsu?
  Keiretsu refers to the Japanese business structure comprised of a network of different
companies, including banks, manufacturers, distributors, and supply chain partners. It is
a key element of the manufacturing industry in Japan.

5. Who are the four tigers? Why are they important to the international businesses?

 The Four Asian Tigers are the high-growth economies of Hong Kong, Singapore, South
Korea, and Taiwan. All four economies have been fueled by exports and rapid
industrialization, and have achieved high levels of economic growth since the 1960s.
 Importance of the four tigers when selecting a market for global expansion. The four
tigers refer to some of the strongest economies in the world such as Hong Kong,
Singapore, South Korea, and Taiwan. These four economies experienced rapid
industrialization and lightning-fast development.
6. What is chaebol?
 The chaebol is the largest conglomerate family-controlled firms of South Korea
characterized by strong ties with government agencies. 

7. Discuss the role of natural resources and agriculture in Africa’s economy.

 Agriculture is by far the single most important economic activity in Africa. It provides
employment for about two-thirds of the continent's working population and for each
country contributes an average of 30 to 60 percent of gross domestic product and about
30 percent of the value of exports.

8. How did import substitution policies affect the economies of Brazil and Argentina?

 Many major South American countries including Argentina, Brazil, adopted these well-

intended but ultimately destructive import substitution policies. In the late 1980s,
however, the countries began to reverse their policies. They lowered tariff barriers,
sought free-trade agreements with their neighbors, privatized their industries, and
positioned their economics to compete internationally. For example, now one of the
most free-market-oriented economies in the world. These policies shifted are expanding
South America’s role in world trade, attracting foreign capital to the continent, and
increasing productivity and per capital income.