1. Explain what is meant by the globalization of markets and globalization of production. Also, provide and discuss an example of each.

Globalization of Markets, refers to the integration of different and separate markets (offering the same basic product worldwide) into one global market place. Some specific consumer products such as Apple, Pepsi, Nike are a good example of globalization of markets, though we need to clarify that the most global markets currently are not for consumer products; they are for Industrial goods and material, such as traded commodities (oil, gas, corn, steel), industrial machinery, computer software etc.
We also realize that as companies (competitors) follow each other around the world in order to establish themselves in different markets, they bring along many of the assets that served them well in other national markets, such as, product, brands, and marketing strategies.

Globalization of products refers to the sourcing of materials, goods and services from low cost producers around the world to be able to offer equal or better quality product at a more competitive and profitable level. A manufacturer of clothing company is a good example of this, cotton is purchased in Peru, Crocodile skin in Colombia, and is all put together in Montreal to be sold in the USA market. Another advantage of globalizing products or services is to be able to deliver results to the client (depending on the industry) at a much faster pace.

2. What does the Venezuelan economy teach us about appropriate systems needed to develop economically and to enhance future prosperity and standards of living? In your estimation, what is the long run prognosis for the Venezuelan economy? Is this a country that is attractive to international businesses? Currently Venezuela is benefitting from a boom in oil prices. What do you think might happen if oil