BBB4M Practice Midterm

 

Thinking

 

1. Which character trait is most important? Why? Give examples. (T) (5)

Integrity is the most important trait because it is about doing the right thing, even when no one is looking. It is also about doing the right thing even when other people are not. No one can always be checking if a person is behaving morally or not, which is why integrity must be the first character trait to develop.

 

Examples of integrity:

-I do my exam fairly even if I know other people are cheating

-I create quality products that are safe for my customers, even if my competitors don’t

-I do my homework daily even if the teacher doesn’t check and it doesn’t count for marks

 

If a person gets more power but lacks integrity, they become more and more dangerous to the people around them.

 

2. How can countries improve their productivity? (T) (5)

There are three major ways for a country to improve productivity. First is increasing investment in machinery and equipment. That will make the secondary industry workers produce more output with the same amount of input (time and labor). Second is spending more on innovation, science, and technology because these fields can create new ways of doing things that bring a jump in productivity to society. Third is outsourcing production of simple things like clothes and food to lower-cost countries. That will free up workers to work in higher-skilled jobs, which produce more for the economy.

 

 

3. What are some things a country can do if it is worried that domestic companies can’t compete with foreign companies? (T) (5)

The most effective method is a trade quota, which will ensure that all domestic items are sold first before any imported items are sold. However, that doesn’t work for all products because sometimes, the quality of imported items is better or more desirable from customers. In that case, a tariff works because it makes the imported product more expensive and therefore less appealing to customers.

 

 

C&A

 

1. Explain 3 pros and 3 cons of globalization. Do you think the pros of globalization outweigh the cons? (C&A) (10)

 

Pros:

One major advantage of globalization is that there’s more foreign investment, which means countries have more resources to invest in innovation and productivity, which then improves the economy. Another advantage is reduced prices for customers in developed countries due to businesses outsourcing to less-developed countries. A third advantage is the decrease in poverty levels, especially in developing countries because of the foreign investment they get from developed countries.

 

Cons:

Globalization has many disadvantages, mainly because of a lack of morality and character in businesspeople and citizens. One major disadvantage is the prevalence of unhealthy products such as junk food and processed foods. These companies are only focused on making a profit and create really addictive but harmful foods that customers can’t stop eating. Another disadvantage is exploitation of cheap labor. Again, the companies only care about profit, and they treat the workers extremely inhumanely because no one is watching. A third disadvantage is the influence of large multinational corporations on governments. Whereas before, governments could focus on serving their citizens, now, large businesses give money to politicians, and then the politicians start caring more about serving these businesses rather than their citizens.

 

Verdict:

Globalization would be great if people had integrity, character, and humanity. But our current society lacks these traits, resulting in businesses focusing purely on maximizing profit in the short term. As a result, the negative effects of globalization clearly outweigh the benefits.

 

2. The Canadian Minister of International Trade has come to you to ask for your opinion on trading with other countries. He wants to know if you think Canada should try to attract more foreign investment, and how to do so. (C&A) (10)

Attracting more foreign investment would help increase the productivity of the country. As a developed country, increasing productivity is key to sustaining economic growth, so it is a good idea for Canada to attract foreign investment. The only country to be cautious of is USA because USA already invests a lot in Canada. If USA invests too much in Canada, they will have too much control over Canada’s businesses. But attract investment from other countries would be very beneficial.

 

There are five ways Canada can attract more foreign investment. First, they can create a more supportive business environment by reducing business taxes and making it easy to set up a business. Second, Canada should build a strong infrastructure system (airports, railroads) so that it’s easy for people to travel from their country to Canada and then to major business centers in Canada. Third is having outstanding employees, which Canada can support by investing in education and getting skilled immigrants to come. Fourth is making the country a great place to live, which Canada supports by having free health care and a clean environment. Fifth is serving as a gateway to the rest of the world. Canada serves as a gateway to doing business with the US and also APEC countries.

 

 

3. The Minister of Finance in China is contemplating whether or not to have a common currency across Mainland China, Hong Kong, Macau, and Taiwan in order to facilitate trade. What is your advice? (C&A) (10)

 

Pros of the idea:
Having a common currency would eliminate the hassle of having to exchanging currencies and the fees involved. It is also easier for talent to move across these areas because people don’t have to change their currencies when sending money back home. It also eliminates the risk of exchange rate fluctuations for businesses in those areas.

 

Cons of the idea:

A common currency only works if the countries involved have similar power. For example, in the EU, all the countries are around the same size and power. It is not a good idea if one country is significantly bigger and more powerful than the other countries. That's because the big country will prioritize their own economy over the smaller countries, so the smaller countries would never agree to have a common currency. Mainland China is much bigger than those other countries, so there's no way those countries would agree to a common currency.

 

Final advice:

While the idea is good for Mainland China, it is clearly unfavorable for Hong Kong, Taiwan, and Macau. Since they won’t like the idea, it’s better to not propose it.