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Pro and Anti Globalization and Capital Budgeting

1. Briefly summarize pro- and anti-globalization arguments.

2. Discuss how globalization impacts the capital budgeting decisions of multinational firms? Be sure to carefully explain your reasoning.

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The response address the queries posted in 948 words with references.

//Before starting the paper and discussing the arguments about pro and anti globalization, I will first; give a short introduction of what is 'Globalization'. I have stated this in the heading below, for example; //


At a worldwide level, globalization refers to the growing economic interdependence among countries as reflected in increasing cross-border flows of goods, services, capital and knowledge. For instance, world trade has increased considerably over the recent years. World exports which stood at $61 billion in 1950 rose to $ 315 billion in 1970, $ 3,447 billion in 1990 and further to $7,480 billion in 2003. During this entire period, the growth in world trade was significantly higher than the growth in world output. As a result an increasing proportion of world output entered into world trade (Mishra & Puri, 2007).

Pro and anti-globalization arguments

Free trade, capitalism and democracy are the factors that support the system that alleviate the globalization. In the developing nations, the supporters of the free trade are in the favor of the globalization, who claims that the economic prosperity and opportunities has been improved due to the globalization. The civil liberties are enhanced and the more efficient allocation of resources is lead by the globalization. According to the theories of comparative advantages, efficient allocations of resources with the countries that are involved in the trade gaining are lead by the free trade. The reduction in prices, high output, more employment and higher standard of living are the results of the globalization (Mishra & Puri, 2007).

The political ...

Solution Summary

The response address the queries posted in 948 words with references.