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Financial Crisis Question Paper

In: Business and Management

Submitted By taskinpritom
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CORK INSTITUTE OF TECHNOLOGY
INSTITIÚID TEICNEOLAÍOCHTA CHORCAÍ
Autumn Examinations 2013/2014

Module Title:

International Business Environment

Module Code:

MGMT7070

School:

School of Business

Programme Title:

Bachelor of Business in Marketing
Bachelor of Business (Honours) in Marketing
Bachelor of Business in Management

Programme Code:

BMKTG_7_Y3
BMKTG_8_Y3
BMGT_7_Y3

External Examiner(s):
Internal Examiner(s):

Prof Jimmy Hill
Ms. Colette M. Murphy

Instructions:

Section A: Question 1 mandatory
Section B: Do either question 2 or question 3

Duration:

2 hours

Sitting:

Autumn 2013/2014

Requirements for this examination:

Note to Candidates: Please check the Programme Title and the Module Title to ensure that you have received the correct examination paper.
If in doubt please contact an Invigilator.
Page 1 of 4

Section A
Question 1 Mandatory
The Global Financial Crisis and Protectionism

Two facts characterized international trade between 1986 and 2007. First, the volume of world trade grew every year, creating an increasingly interdependent global economy, and second, barriers to international trade were progressively reduced. Between 1990 and 2007 international trade grew by
6 percent annually compounded, while import tariffs on goods fell from an average of 26 percent in
1986 to 8.8 percent in 2007. In the wake of the global financial crisis that started in the United States in 2008 and quickly spread around the world, this changed. As global demand slumped and financing for international trade dried up in the wake of tight credit conditions, so did the volume of international trade. The volume of world trade fell by 2 percent in 2008, the first decline since 1982, and then slumped a further 12 percent in 2009. This contraction was alarming because past sharp declines in trade have...

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