- The course provides a generalist overview of the global business environment, including themes such as globalization, legal and ethical considerations, business strategies, global business practices, and technologies and trends. - Globalization is the process by which people and goods move across borders, and the course explores its pros and cons, as well as the impact of political, legal, and economic systems on the spread of businesses and goods across borders. - Businesses must consider legal and ethical considerations when expanding internationally, including adhering to different nations' antitrust, environmental, production and labor, contract, and property laws and cultural and ethical guidelines. - To succeed in an international market, firms must strategize on how to enter the market, develop a cost-efficient and stable supply chain, and maximize their profit. - The course explores the technologies that have made it easier for businesses to expand globally and the expected trends for the future. - Understanding the digital divide and the advantages and disadvantages of operating in environments without a strong technological infrastructure is important for businesses. - The course covers robotics, artificial intelligence, automation, and the internet of things and their impact on global business. - The information in the course is organized into units with each unit having introductory pages, modules, lesson pages, and summary pages. - The course content includes embedded or linked readings and videos, instructional graphics or charts, and navigational icons to help identify important components in the course content. - As you work through the content, you will have opportunities to practice and reinforce what you are learning through learning checks, module assignments, unit tests, and an integrated case study. - The purpose of the integrated case study is to apply specific functional knowledge that you learn in a module to a single, complex case and understand how various units work together to achieve an organization's objectives. - This course has a proctored objective assessment, and prior to taking it, you will take a pre-assessment that will give you a similar experience. You are assessed on your overall competency relative to a topic, and unscored items may be added to the proctored assessment. - Japan and South Korea are the majority of car manufacturers in Thailand, and there are also American and Indian car manufacturers. - Flooding in Thailand in 2011 caused significant damage to the country's economy, and a Japanese car manufacturer's manager must evaluate whether to continue building a factory in Thailand or leave. - The manager must consider the financial benefits and drawbacks of building a factory in Thailand instead of Japan, as well as the political and economic environment in Thailand. - The manager must also consider the company's legal obligations to employees and the Thai government if another natural disaster occurs. - This situation highlights the political, economic, and legal risks and benefits of globalization. - Globalization is the worldwide interconnection of cultural, economic, and political activities. - Global trade has increased significantly since 1980, allowing countries to specialize in their production and increasing global production. - Proponents of globalization argue that it has expanded markets, raised living standards, and driven innovation. - Globalization has had different effects on wage inequality and job availability across the world. The International Monetary Fund (IMF) identifies trade, capital and investment movements, migration and movement of people, and dissemination of knowledge as fundamental aspects of globalization. Globalizing processes also impact business, work organizations, economics, sociocultural resources, and the natural environment. Globalization is commonly subdivided into economic, cultural, and political globalization. Globalization has led to the widespread sharing of information, cultural trends, and increased connectivity through social media platforms and advancements in transportation. Some research indicates positive trends in the developing world such as increased life expectancy, but it is unclear whether these trends are directly linked to globalization. 1. Infant mortality rate has significantly decreased and adult literacy has increased in developing countries since 1970 due to improved living standards and health conditions. 2. Globalization has led to outsourcing of jobs to lower cost locations, resulting in income disparity. 3. Some regions benefit from globalization, while others may suffer harm. Cultural trends, social media platforms, and commercial air travel are drivers of globalization, while wealth inequity is a negative result. - Members of a work team from different countries share their thoughts on developing a strategy to market a product in multiple countries. - The term for the international integration of the team members' exchange of worldviews and ideas to develop the strategy is not specified in the text. - Cultural globalization refers to the transmission of ideas, meanings, and values around the world in a way that extends and intensifies social relations. - While cultural globalization has increased cross-cultural contacts, it has also been accompanied by a decrease in the uniqueness of once-isolated communities. - Many argue that cultural globalization is a process of homogenization and the global domination of American culture at the expense and erasure of other cultures. Globalization has effects on political and economic environments. Political globalization may reduce the importance of nation-states and increase the influence of supranational institutions and NGOs. Economic globalization refers to the movement of goods, capital, services, technology, and information across borders. This has been supported by the integration of developed and developing economies through foreign direct investment and trade agreements. Globalization refers to international integration from exchanging products, ideas, and cultures, affecting political, economic, and cultural environments globally. Technology and transportation have increased the opportunity for trade and sharing ideas, which has also changed the economic landscape. Globalization is characterized by worldwide connections, rapid change, diversity, and complexity. NGOs work across borders to deal with worldwide issues. Globalization has both advocates and opponents, as some feel that it exposes people to more cultures, while others worry about cultural homogenization. - Globalization creates business opportunities and challenges for organizations and individuals. - Multinational corporations have changed the way businesses are run daily, with access to a broader market, specialization, and cheaper labor. - International business involves the production or distribution of goods or services across country borders and can encompass a range of cross-border exchanges of goods, services, or resources. - Globalization can take place in markets and production, and managers should consider a broader definition of international business. - International business involves various legal protections, such as copyrights, trademarks, and assets/liabilities. - It includes multinational corporations and small companies involved in cross-border transactions for financial or nonfinancial gains. - The process of becoming a global organization involves five stages: market entry, product specialization, value chain disaggregation, value chain reengineering, and creation of new markets. The article discusses the five stages of globalization in the supply chain infrastructure: production presence, product specialization, value chain disaggregation, value chain reengineering, and creation of new markets. These stages do not follow a rigid sequence for all industries. Companies can benefit from cost savings and market expansion in the later stages. Examples of industry specialization and location focus are given in the consumer electronics industry. - The article discusses the five stages of going global, which include market entry, product specialization, value chain disaggregation, value chain reengineering, and creation of new markets. - Companies seek to reduce costs by shifting production to low-cost locations and substituting lower-cost labor for capital. - Globalization drivers, such as convergence of customer needs, create opportunities for economies of scale through standardized offerings that meet global customer demands. Globalization drivers for industries are market opportunities, cost, competition, and government support, which are shaping industries worldwide. The globalization of customer needs and opportunities for scale and standardization will alter the economics of many industries, making economies of scale and scope crucial determinants of global strategy. Both scale and scope help drive costs and support globalization efforts. As industries become more homogenous, global branding and marketing will become increasingly important to global success. Summary: - Globalization potential of an industry is affected by characteristics such as trade levels, competitive diversity, and interdependence, as well as industry evolution. - Government drivers such as trade policies, technical standards, and regulations shape the global competitive environment and are crucial for a global strategy. - The benefits of globalization include access to a wider range of products, services, technologies, and knowledge, leading to increased sales, GDP growth, and empowerment of individuals and political systems. - Global companies, or MNCs, can benefit from expanding into developing markets with unsaturated demand. - MNCs operate internationally to achieve higher revenue or lower cost structure - Global expansion offers opportunities for economies of scale and scope, leading to business growth and larger revenues - Challenges of global expansion include ethical business practices, organizational structure, and public relations - Maintaining the highest ethical standards while operating in any nation is an important consideration for all MNCs. - Finding a way to capture value despite fixed organizational investment is important for global corporations. 1. Building a brand in a new geographic region is challenging and requires effective localization and capital expenditures. 2. Finding talented leadership with intercultural competence is critical for successful global strategy. 3. Understanding the legal and regulatory structure of a new market is necessary for compliance and profitability. 4. Developing infrastructure and navigating technological challenges can pose additional difficulties, particularly in developing and less-developed countries. This text discusses the benefits and challenges of expanding business globally, including the importance of reliable access to broadband internet and the need to balance costs and risks. The four drivers of globalization are market, cost, government, and competition. Challenges to international business expansion may include poor infrastructure and technological limitations. There are five stages of entering a global market, each with increasing commitment and potential risks. McDonald's: - Plans to increase investment in Russia and accelerate expansion - Faced an EU antitrust complaint in 2016 - CEO warns about "consumer uncertainty" - Gets special sauce abroad - Had 12 restaurants shut down in Russia as tensions rose in 2014 - Pratt & Whitney consolidated its Indiana plant into Singapore in 2009 due to the global economic downturn and to be more competitive. - The move resulted in the loss of 104 jobs and $4.7 billion in profits and $7.7 billion in U.S. contracts. - The benefits of moving operations to Singapore were increased efficiency, Six Sigma certification, and a highly skilled workforce. - The globalization debate concerns the movement of goods from one geographic region to another and has been a critical factor in human affairs since prehistoric times. - Globalization is the shift toward a more interdependent and integrated global economy, primarily fueled by declining trade and investment barriers and new technologies. - The globalization debate is centered around whether and how fast markets are merging together and how it is affecting countries' cultural, consumer, and national identities. - According to Friedman, globalization has gone through three stages: Globalization 1.0 (1492-1800) driven by nationalism and religion, Globalization 2.0 (1800-2000) disrupted by the Great Depression and world wars and driven by MNCs, and Globalization 3.0 (around 2000) driven by advances in global electronic interconnectivity. - Globalization 3.0 has allowed an unprecedented number of people worldwide to work together with unlimited potential, enabled by software advances and the ability to outsource work to other countries. This article discusses the trend of outsourcing and home sourcing in the globalized economy. Companies can outsource any service or business that can be simplified to its key components and converted to computerized operations. Outsourcing allows companies to access qualified and cheap labor from around the world. With the flattening of the world, new workers and workers facing dislocation should refine their skills and capitalize on new opportunities. Friedman identifies 10 significant events that helped reshape the modern world and make it flat. Jobs that cannot be typically moved offshore range from local barbers and plumbers to professionals such as surgeons and specialized lawyers. 1. Improved acquisition and distribution can lower costs and encourage suppliers to boost quality. 2. Technological advances have resulted in powerful computing capability and transmission. 3. The convergence of new software, increased public familiarity with the internet, and the market influx of billions of people from Asia and the former Soviet Union generated a critical mass, creating opportunity for billions of people. 4. The world is not completely flat but is semiglobalized and multi-domestic, with national differences affecting global strategy. 5. Cultural differences between countries reduce their economic exchange, and a CAGE analysis can be used to study barriers to cross-border economic activity. The article discusses the CAGE framework for analyzing the differences between countries that affect international business. The four dimensions of the framework are: 1. Administrative distance: Similarities or differences in government institutions and policies 2. Geographic distance: Physical distance and differences in time zones, ports, borders, topography, and climate 3. Economic distance: Differences in demographic and socioeconomic conditions, such as GDP, per capita income, labor costs, and access to capital 4. Cultural distance: Differences in language, religion, values, and norms that affect communication and behavior. The article notes that the greater the CAGE distance between countries, the more difficult it is to conduct business across borders. However, when CAGE differences are small, there is a greater opportunity for international business. 1. CAGE framework for international trade includes considerations for culture, administration, geography, and economics. 2. Factors like similar culture, administrative policies, closer geography, and comparable economic parameters increase the likelihood of trading. 3. Reactions to globalization vary widely, with proponents seeing it as desirable for economic growth and development while opponents view it as detrimental to social welfare and causing inequality. - Globalization brings benefits to organizations including increased pace of development, awareness of international community, and potential for selling to broader markets. - Advocates of globalization argue that it leads to higher economic freedom, creating more wealth and jobs, and a less compartmentalized world structure. - However, critics argue that unrestricted fair trade benefits the rich at the expense of the poor, and competition between countries has not driven prices down as expected. - There are ongoing debates surrounding the impact of globalization on the planet and individual nation-states, particularly those in the Third World. - Globalization has led to a culture of fear among middle-class workers in developed countries as jobs are exported to developing countries where labor is cheaper. - While globalization has decreased inequality between countries, it has increased inequality within countries. - Critics challenge traditional metrics like GDP and point to evidence of social disintegration, environmental damage, and increasing poverty as unintended consequences of globalization. - Environmental challenges like climate change and overfishing have been linked to globalization, and some see it as promoting corporate interests at the expense of local populations. - Critics question the ethics and long-term feasibility of profits captured through global expansion, arguing that it creates unfair exchanges between larger and smaller economies. Globalization has winners and losers, and the benefits can be interpreted differently by different groups. There are concerns about the negative impacts of globalization, including damage to the environment, unethical labor practices, and weakening of cultural values. Advances in technology and transportation have led to at least three waves of globalization, and countries evaluate their trading partners based on various factors. There are significant concerns for sustainability in the face of globalization, but proponents point to increased financial stability in developing nations and potential technology development as positives. This text contains a list of references and attributions from various sources related to globalization. The sources cover both the pros and cons of globalization and include articles, books, and blog posts. The sources provide insights into the economic impact, human effects, and corporate pursuit of globalization. 1. Huawei, the top telecom supplier and phone manufacturer, has been banned from the US due to concerns about its equipment being used for spying. 2. The US Commerce Department blacklisting Huawei products led to layoffs of 600 workers. 3. Political and legal environments affect global businesses, and firms must abide by local rules and regulations. 4. Governments can regulate or enforce that companies abide by their rules and regulations, so global businesses monitor and evaluate the political and legal climate in the countries in which they operate or hope to operate. - A political system is the system of politics and government in a country, consisting of rules, regulations, institutions, and attitudes. - Political systems have different philosophies on individual and group rights and the role of government, which impact policies that govern the local economy and business environment. - There are more than 13 major types of government, ranging from anarchism to totalitarianism, but most countries have a combination of both. - Pluralism asserts that both public and private groups are essential in a well-functioning political system, but some countries have authoritarian governments that centralize all control in the hands of one strong leader or a small group. - A country's political system can significantly impact the success rate of a business. - Companies may assess a prospective country's political risk and stability by considering factors such as government stability, democracy or dictatorship, concentration of power, and government involvement in the private sector. - Political stability is crucial for attracting foreign investment. - Businesses need to consider a country's view of capitalism and whether it is a free market, government-controlled, or heavily intervened in industries. - Historically, democratic governments have supported capitalism, while authoritarian regimes have used a state-controlled approach. 1. Established democracies offer high political stability, while other democracies can be less stable due to fluctuations in economic and trade policy with government changes. 2. China has combined an authoritarian government with a market-oriented economy, resulting in a unique economic model referred to as "a socialist market economy with Chinese characteristics." 3. Doing business in China can pose challenges related to privacy, individual rights, and intellectual rights protections. 4. The Chinese government is divided among seven state organs, and the Communist Party has control over the state, military, and media. 5. It is not always straightforward for businesses to operate only in democratic, capitalist countries as China's economy has become the second largest in the world. Global firms have historically done business with authoritarian governments in industries such as commodities and oil for long-term access and investment. Governments have protected their nation's largest business interests in markets around the world, as seen in the history of the oil industry. The Chinese government has been using government loans and investment in Africa to gain access to local resources and commodities for Chinese companies. Political factors can have a significant impact on the success of a business in a foreign country, and accommodation may need to be made, such as restrictions on freedom of speech in China. - Sanctions or tariffs can make international trade with a nation impossible - A country's political system can have a significant effect on local and international businesses, with governments motivated to intervene in trade by economic and security factors - Firms need to assess the balance of power in a country to determine how local policies, rules, and regulations will affect their business. - An economic system is the decision-making structure of a nation’s economy and can involve markets, firms, and government to answer the economic problem of resource allocation. - There are different types of economic systems such as command, market, and mixed economies, which can impact how businesses operate. - Economic growth is measured by the increase in the amount of goods and services produced by an economy over time, and countries can be classified into industrialized, developing, and less-developed nations based on their economies. - Industrialized nations have economies characterized by a healthy climate for private enterprise, higher literacy rates, modern technology, and higher per capita incomes. 1. Industrialized nations include the US, Japan, and the UK, while less-developed nations include Cambodia and Uganda. Developing nations include India and Costa Rica. 2. The most significant business opportunities exist among industrialized nations, but longer-term growth potential exists in developing nations. 3. When developing an economic system, three questions must be answered: what to produce, how to produce it, and who will get the final product. 4. Traditional economies use methods of trade and exchange passed through generations and have very little economic evolution or growth. 5. The five key characteristics of a traditional economy include subsistence agriculture, bartering, lack of technology, social roles, and the absence of a monetary system. - Traditional economy is centered around a family or tribe, relies on bartering, and everyone consumes and produces the same goods. - Members produce what they need with no surplus and eventually evolve to some form of currency. - Advantages of traditional economies include little friction between members and sustainability, while disadvantages include vulnerability to climate and lower standard of living. - Examples of countries with traditional economies are Haiti and Bhutan. - Command economies operate differently with economic effort devoted to goals passed down from a ruler or ruling class, with resources and businesses owned by the government and government determining production, prices, and worker pay. - Only North Korea and Cuba currently have command economies - Command economies have state control over resources, inputs and outputs, labor, ownership, and prices - Advantages include mobilizing large resources and transforming economy based on a leader's vision, while disadvantages include neglect of society's needs, rationing, lack of innovation, black markets, and inflexibility - Venezuela is an example of a command economy, with authoritarian government control and a focus on oil production. The text compares command and market economies, highlighting the characteristics of each. In a command economy, the government controls production and distribution, while in a market economy, decisions are based on consumer demand. Market economies are decentralized, with privately owned means of production, and prices regulate supply and demand. The six characteristics of a market economy are: private ownership, freedom to produce and purchase goods, profit motive, competition, price regulation, and specialization. - Market economies rely on efficient markets with equal access to information and minimal government interference. - Advantages of market economies include consumer choice, efficient production methods, innovation, and investment. - Disadvantages of market economies include disadvantages for those who cannot compete, lack of access to education and skills, and a significant divide between the privileged and the underprivileged. - Mixed economies borrow from both market and command economies, with advantages including distribution of goods and services where they are most needed, innovation, and government intervention to minimize disadvantages. However, disadvantages may include too much government interference and debt. - Mixed economies combine market freedom with governmental regulation - Freedoms in a mixed economy include possession of means of production, participation in managerial decisions, and peaceful protest - Services provided by the government include education, healthcare, transportation, and infrastructure - Regulations and laws imposed by the government include environmental, labor, and consumer protection laws, as well as taxes and fees - Each country must determine the ideal balance between market freedom and governmental regulation. The text discusses four main categories of economies: traditional, market, command, and mixed. Most countries have a mixed economy that has less government intervention than a command economy, and supply and demand control the economy. A market economy is a decentralized economy where firms and households determine resource allocation. Traditional economies are found in rural countries where farming is the primary occupation. In a command economy, the economic system is controlled by a centralized power, while in a planned economy, factors of production are used for the common good. The text provides an overview of different types of economic systems, including traditional, market, command, and mixed economies. Each type of economy has its unique characteristics, advantages, and disadvantages. Traditional economies rely on methods of trade and exchange passed through generations, while command economies have state control over resources, inputs, and outputs, labor, ownership, and prices. Market economies are decentralized, with privately owned means of production, and prices regulate supply and demand. Mixed economies borrow from both market and command economies, with a balance between market freedom and governmental regulation. The text also discusses economic growth and how countries can be classified based on their economies, including industrialized, developing, and less-developed nations. Industrialized nations have economies characterized by a healthy climate for private enterprise, higher literacy rates, modern technology, and higher per capita incomes. Developing nations have longer-term growth potential, while less-developed nations have lower levels of economic development. In summary, the text provides a broad understanding of economic systems, their characteristics, and their impact on businesses and societies. Understanding the different types of economies and their strengths and weaknesses can help individuals, businesses, and governments make informed decisions about resource allocation and economic development. - Airbnb's online rental platform may violate housing laws in certain cities. - Different cities have varying laws on short-term rental and Airbnb has faced legal challenges in cities like New York, Barcelona, and Berlin. - Multinational companies must understand the legal systems and laws of the countries they operate in to mitigate legal risks. - Legal risk analysis involves assessing a country's legal system and enforcement agencies. - There are three main legal systems: common law, civil law, and religious law. - Civil law is based on a detailed set of laws that constitute a code, while common law is based on traditions and precedence. - Islamic law, or Sharia, is the most widely accepted religious law system and is found throughout Africa, the Middle East, Central Asia, and South Asia. - The impact of religious law on business can be observed most directly in Islamic law, which is a moral legal system rather than a commercial one. - Sharia has clear guidelines for many aspects of life, including business and finance. - Islamic banks cannot charge or benefit from interest, leading to the development of financial products and strategies to simulate interest. - Talmudic law applies in some regions with a significant Jewish population, relying on the written and oral Torah and the Talmud. - Customary law is found in countries without strong formal justice systems and is based on longstanding local customs. There are three conventional systems of law: civil, common, and religious laws. Countries under civil law have more detailed, prescriptive laws in which the role of the judge is to investigate whether a law has been broken. Common law is based on precedence. The role of the judge is to hear arguments from both parties and make a judgment. Religious law is based on religious beliefs. One example is a requirement in Sharia that people following Sharia may not borrow money. - Globalization increases interdependence and interconnectedness among countries and companies, leading to more opportunities for revenue generation. - Developing countries benefit from globalization, but it can be detrimental to workers in the manufacturing industry in developed countries. - Political and legal environments in every country where business is done should be taken into consideration as political disagreements can lead to tariffs and sanctions. - Market and command economies have different impacts on different industries. - The IMF, World Bank, and WTO play a role in regulating and assisting in the process of globalization. - Tasks to be performed include defining globalization, identifying business opportunities presented by globalization, identifying pro- and anti-globalization arguments, identifying political and economic systems and their impact on global business, and comparing legal systems in the global business environment. - The least clear concept or topic is not specified. - Other questions are not specified. Sure Start Batteries is a manufacturer of traditional automotive batteries that has been mildly profitable since its founding in 1994. The company has opened a small corporate office in Buenos Aires to manage business throughout South America. CEO Charlie Wicker recently started a research division to develop rechargeable batteries for electric cars, with the hope of becoming a mass producer in this new market. Although there was some pushback from employees concerned about financial risk, the new electric battery has received positive publicity and the firm has signed contracts as a battery supplier for small electric car manufacturers in Europe and Asia. To support this expansion, Sure Start will need to establish corporate offices, make changes to marketing, sales, and pricing, and establish new manufacturing facilities in these new markets. Sure Start is considering manufacturing electric batteries in Asia to reduce transportation costs, which concerns employees in North Carolina. Sure Start plans to expand and establish new offices in Europe and Asia, with trusted leaders temporarily relocating to assist with hiring and maintaining corporate vision. Sure Start faces challenges with new trade policies and safety concerns related to the batteries, and the Chief Marketing Officer is tasked with developing a marketing strategy to communicate safety and balance existing employee concerns with the promising future of the new product offering. Corporate communication will also be essential with the spread of four corporate offices around the world. - Effective communication channel must be established for physical separation of senior leadership - Internal communication to ensure a unified vision and message for employees globally - Coordinated external communication to maintain a unified message for suppliers, investors, customers, and communities - CFO recommends clearly defined goals for achievement to manage cost implications of rapid expansion - Managers should identify current deficiencies and prioritize goals into short-term and long-term categories for financial decision-making. Question 1 of 6 Question 1This is not a form; we suggest that you use the browse mode and read all parts of the question carefully. Which type of globalization is represented by Sure Start expanding into South America, Europe, and Asia? Cultural Political Economic Legal Question 2 of 6 Question 2This is not a form; we suggest that you use the browse mode and read all parts of the question carefully. Sure Start is starting a new division for rechargeable batteries in different parts of the world. What was the globalization driver of this decision? Competition Government Cost Market Question 3 of 6 Question 3This is not a form; we suggest that you use the browse mode and read all parts of the question carefully. Which antiglobalization argument could lead to Sure Start continuing to maintain its current factories instead of moving them to Asia? Tariffs for batteries made in Vietnam will make them less expensive. Factory workers fear their jobs will be moved to another country. Moving manufacturing to Vietnam will result in lower profits for the company. Labor laws in Germany will ensure the company maintains ethical labor practices. Question 4 of 6 Question 4This is not a form; we suggest that you use the browse mode and read all parts of the question carefully. Which action should the U.S. government take to encourage Sure Start to keep electric battery production in the country? Allow dumping of batteries made in Vietnam Impose tariffs on batteries made in Vietnam Enact more strict environmental regulations of U.S.–produced batteries Levy a value-added tax on manufacturing activity in the United States Question 5 of 6 Question 5This is not a form; we suggest that you use the browse mode and read all parts of the question carefully. Which economic system facilitates the global expansion of Sure Start? Market Traditional Command Mixed Question 6 of 6 Question 6This is not a form; we suggest that you use the browse mode and read all parts of the question carefully. Which legal system will Sure Start be following when they begin operating in Germany? Civil law Common law Religious law Cannon law Answer 1: The type of globalization represented by Sure Start expanding into South America, Europe, and Asia is economic globalization, as it involves the expansion of their business operations to different parts of the world. Answer 2: The globalization driver of Sure Start's decision to start a new division for rechargeable batteries in different parts of the world is the market, as they are responding to the demand for rechargeable batteries in various regions. Answer 3: The antiglobalization argument that could lead to Sure Start continuing to maintain its current factories instead of moving them to Asia is the fear among factory workers that their jobs will be moved to another country. Answer 4: To encourage Sure Start to keep electric battery production in the country, the U.S. government could impose tariffs on batteries made in Vietnam. Answer 5: The economic system that facilitates the global expansion of Sure Start is the market economic system, as they are responding to market demand for their products in various regions of the world. Answer 6: When Sure Start begins operating in Germany, they will be following the civil law legal system, which is the predominant legal system in Germany and is based on detailed, prescriptive laws that determine whether a law has been broken. MODULE 2 In 1945, delegates from 44 allied and associated countries arrived in Bretton Woods, New Hampshire for the United Nations Monetary and Financial Conference. The conference aimed to promote world trade and encourage world peace by creating international organizations with the power to enforce international rules and regulations. As a result, the International Monetary Fund and the International Bank for Reconstruction and Development (later known as the World Bank) were created, and the foundation was laid for the General Agreement on Tariffs and Trade and later the World Trade Organization. These policies and institutions form the foundation of modern economic policies and play a vital role in global economic stability. - The International Monetary Fund (IMF) is an international organization that promotes global monetary cooperation, financial stability, international trade, and sustainable economic growth. - The IMF was established in 1944 in Bretton Woods, New Hampshire, along with the International Bank for Reconstruction and Development (IBRD), which later became the World Bank. - The IMF's primary purpose was to ensure the stability of the international monetary system by managing the fixed-rate currency exchange system and helping governments correct temporary trade imbalances with loans. - The IMF continues to have far-reaching influences across international organizations, governments, and political systems. - The World Bank and IMF are twin intergovernmental institutions supporting the global economic and financial order, with expanded roles and calls for further expansion. - Despite similarities, they have distinct functions and roles, with the World Bank focused on developmental projects and the IMF overseeing the international monetary system. - Both organizations are owned and directed by member nations, have almost every country as a member, and are headquartered in Washington DC with joint task forces and research offices. - The World Bank has a larger staff and is a developmental institution that invests in developing countries, while the IMF is smaller and acts more like a credit union that provides financial assistance and loans to all member nations. - The IMF was created in 1944 and has 189 member countries. - Its goal is to stabilize exchange rates, promote global monetary cooperation, and reduce poverty. - Members' voting power and financial commitment to the IMF are based on a quota system. - The IMF provides policy advice and financing to countries in economic difficulties and works to help developing nations achieve macroeconomic stability. The International Monetary Fund (IMF) oversees the global monetary and financial system and monitors the policies of its 189 member countries through "surveillance." Since the 1970s, surveillance has evolved by way of changes in procedures rather than through t