MNG 00723 Assessment 1: Short written response (20 marks) 1500 words Answer the following 3 questions (each approximately 500 words): 1. What is globalisation and how does it affect domestic...

ASSESSMENT 1: SHORT WRITTEN RESPONSE
WORD COUNT = 1550
Table of Contents
1. Globalisation and its Positive as well as Negative Impact on Domestic Business    3
Definition of Globalisation    3
Positive Impacts of Globalisation on Domestic Business    3
Its Negative Impacts on Domestic Business    3
2. Factor Proportions Theory, International Product Cycle Theory and a Limitation of Each    4
Factor Proportions Theory    4
International Product Cycle Theory    4
One Limitation of these Theories, with Example    5
3. Imposition of Tariff on Chinese Imports by Donald Trump    6
(i) Reason for the Tariff    6
(ii) Its Impact on Domestic Customers    6
References    8
1. Globalisation and its Positive as well as Negative Impact on Domestic Business
Definition of Globalisation
Globalisation is an active process of overall development that has significant spatial effects in economic, cultural and political domain. As mentioned by Zajda (2015), it assists a society in getting international recognition, influence as well as operation. However, globalisation can impact the domestic business of a country both positively and negatively. Due to globalisation, the concept of global market has emerged in the society. The emerging markets could be successful due to the privatisation of state-owned industries.
Positive Impacts of Globalisation on Domestic Business
Several companies are raising the consumer demand by extending and expanding their value chain to global level. Therefore, globalisation increases the transactions across in international domain. The multinational companies are a result of globalisation. Globalisation is also responsible for competition in the market. Therefore, as viewed by Liang et al. (2015), the positive effects of globalisation are expressed through the high-quality products and services offered by the competing companies. The domestic companies are forced to raise their own standards to satisfy the needs of the customers while competing with foreign companies to survive in the market.
Globalisation has also affected the culture positively. Due to globalisation, various cultures came together and shared their good practices to make the world a better place. As supported by Broner and Ventura (2016), when organisations share a similar cultural background and communicate in a common language or in a language that they can relate to easily, the sharing of ideas become even more convenient. Therefore, the understanding between the employees and employers, amongst the team members as well as the allied firms is stronger, while they also cooperate with one another in a better way.
Lastly, due to globalisation, geographical proximities have eased up better than that it used to be before. As stated by Liang et al. (2015), presently, since a large number of countries support the idea of globalisation, they have embraced political unity and have facilitated the trade of goods, services and labour movements. This has been even more facilitated in case of neighbouring countries as they mostly share common culture, language or geographical histories.
Its Negative Impacts on Domestic Business
Despite the positive impacts; however, it cannot be denied that globalisation also does lay some negative impacts on the domestic business. Firstly, in the urge to meet the global standards, often it has been noticed that the uniqueness of the country’s own domestic products are lost. As supported by Broner and Ventura (2016), when businesses opt...