IGCSE Development Studies: Specimen Questions with Answers 43 - 44 of 98

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Understand by Globalization

Question 43 (1 of 8 Based on Passage)

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Explain the following:

Joint ventures

Explanation

Joint ventures: Joint venture reefers to the co-operation of two or more individuals or business in which each agrees to share profit and loss and control in a specific enterprise. It is usually a temporary partnership without the use of a firm name. It limited to the specific purpose for which the persons agree to contribute capital and share losses. The liability of the partners is limited to the venture concerned for which they agree to contribute capital and share profit and losses.

Features of Joint Venture Are

  • Agreement between two or more persons.
  • Joint venture is made for the specific execution of a project or task. Thus, the going concern concept of accountancy is not applicable to a joint venture.
  • Agreement for joint venture is dissolved as soon as the specific project is over.
  • The profit and loss of joint venture is computed on completion of the venture.

Question 44 (2 of 8 Based on Passage)

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What do you understand by globalization?

Explanation

Globalization is a process of interacting and sharing technology, knowledge, skills with other nations through different modes like:

  • Trade
  • Political co-operation
  • Science
  • Media
  • Culture Exchange

It is the ongoing social, economic, political process that broadens and deepens the relationship and interdependencies amongst different countries, their people, government, and firms. International business is responsible for facilitating the process of globalization. The power remains in the hands of stock bonds and currency traders moving fund. It is beneficial for the multinational corporations looking for more efficient, low cost producers.

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