| 1. Explain what is meant by the globalization of markets. Provide an example. What are the most global markets? The globalization of markets refers to the idea that historically distinct and separate national markets are merging into a single, huge global marketplace. The most global markets are not actually for consumer goods, but instead are for industrial goods and materials that serve the same needs across the world.Discuss the concept of the globalization of production. The globalization of production refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production (such as labor, energy, land, and capital). By doing this, companies hope to lower their overall cost structure or improve the quality or functionality of their product offering, thereby allowing them to compete more effectively. 2. What is the International Monetary Fund? What is the World Bank? What is their relationship, if any, with each other? The International Monetary Fund (IMF) was created to maintain order in the international monetary system. The World Bank was established to promote economic development. Both organizations were launched as part of the 1944 Bretton Woods Agreement, and have emerged as significant players in the global economy. The IMF is often seen as the lender of last resort to nation-states whose economies are in turmoil and currencies are losing value against those of other nations. 3. How has the foreign direct investment picture changed since the 1960s? The U.S. accounted for about 66.3 percent of worldwide foreign direct investment flows in the 1960s, followed by British firms with about 10.5 percent of FDI flows, and Japanese firms with 2 percent. As barriers to trade fell, non-U.S. firms increased their investments around the world in search of optimal