1. What is globalisation and how does it affect domestic businesses? In your response, include a definition of globalisation, and discuss at least three positive and three negative impacts of globalisation. (6 marks) 2. Explain the Factor Proportions Theory and International Product Cycle Theory. Also, discuss one limitation for each of these two theories using real examples. (6 marks) 3. Donald Trump, president of the United States of America, announced the imposition of a tariff on Chinese imports in the recent past. Based on your understanding of the first 3 topics of this unit, (i) what could have been the reason/logic behind such a comment/decision, and (ii)what are the implications of such an intervention on domestic consumers? (8 marks)
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