Choose any two of the following questions and submit a report on your Essay

Choose any two of the following questions and submit a report on your findings with special reference to G20 summit - Essay Example Some of the drivers that positively influence globalization include the growth of industrialization in other countries of the world which reduces costs, tariff and working capital. Decreasing government trade barriers have increased foreign direct investments much faster than the world outputs (Suk, Seung and Kenneth 2006). For these reasons major corporations are engaged in expansionary activities to outsource their operations abroad. For example Ford is an American based company. It is one of the big three motor companies in the US and used to be the source of livelihood for a significant portion of the US population. However, with the increase in global financing opportunities, Ford has diversified its products to sell its motor vehicles in Europe and Asia. As Europe has opened its consumer markets to the world Ford has capitalized on the ready market to sell its completely assembled cars in collaboration with local companies. However, as the global finance environment in parts of Asia improved and opened up to Western investors, Ford has gradually shifted production of automobiles in low cost country like in China. Investment in China not only reduces cost of operations and productions Global financing has thus become an important source for world trade and incentive for foreign investment as it allows multinational companies to increase shareholders wealth. However, there are risks associated with global investing. Unlike local investment, global investment is subject to political, financial and regulatory risks. In countries where political turmoil is apparent like those in France, India, China and Indonesia, investment in these countries pose great threats to exchange controls, confiscation of assets and changing corporate policies. Similarly, financial risks include the fluctuating exchange rates, tax laws, interest rates and inflation rates as well as balance of payments. Legal risks like differences in legal system, overlapping jurisdiction and