1. Economic globalization is defined as the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology. Although globalization is generally viewed favorably, it also increases the vulnerability of a country to economic conditions of other countries. An economist predicts a 60% chance that country A will perform poorly and a 25% chance that country B will perform poorly. There is a 16% chance that both countries will perform poorly.
a. What is the probability that country A performs poorly given that country B performs poorly?
b. What is the probability that country B performs poorly given that country A performs poorly?
c. What do these results mean when you consider the statement “increases the vulnerability”?

To find the probability , We use the formula :
p = Number of favourable outcomes/Number of total outcomes

a.) Lets find probability of country A

A(p) = 60% = 60/100

A(p) = 3/5
So the probability of country A to perform poor is 3/5.

b.) Now have to find probability of country B
B(p) = 25/100

B(p) = 1/4

So the probability of country B to perform poor is 1/4.

c.) The statement “increases the vulnerability” means when their is a high probability of country to become poor, then it effect the country directly on the economy and makes a situation bad in the specific area.

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