Globalization & Sustainability Midterm Revision

Flashcards based on Globalization and Sustainability lecture notes preparing for the midterm examination.

What is globalization in business?

A shift toward a more integrated and interdependent world economy.

What are the two sides of globalization in business?

Globalization of Markets and Globalization of Production.

What is globalization of markets?

Tastes and preferences of consumers in different nations are converging on some global norm, creating a global market.

Give examples of companies representing globalization of markets.

Coca-Cola, McDonald's, IKEA, Starbucks, Apple.

What are the most global of markets for industrial goods?

Products like aluminum, oil, wheat, and microprocessors.

What is globalization of production?

Sourcing of goods and services from locations around the globe to take advantage of national differences.

What are the advantages of globalization of production?

Increase productivity, decrease cost, improve product quality and competitiveness.

What barriers exist to globalization?

Formal and informal trade barriers, barriers to foreign direct investment, transportation costs, economic and political risk, scattered supply chain.

What is the World Trade Organization (WTO)?

It polices the world trading system and ensures nation-states adhere to the rules established in WTO treaties.

What role does the International Monetary Fund (IMF) play?

Lender of last resort that requires nation-states to adopt specific economic policies in return for loans.

What is the purpose of the World Bank?

Promotes economic development using low-interest loans to governments.

Who comprises the Group of Twenty (G20)?

Finance ministers and central bank governors of the 19 largest world economies plus the EU and European Central Bank.

What key driver of globalization relates to trade barriers?

The decline in trade barriers to free flow of goods, services, and capital.

What is foreign direct investment (FDI)?

Occurs when a firm invests resources in business activities outside its home country.

What past events have affected international trade?

The global financial crisis of 2008 to 2009 and the COVID-19 global pandemic.

What is a multinational enterprise (MNE)?

Any business that has productive activities in two or more countries.

What is collectivism?

A system that stresses the primacy of collective goals over individual goals.

Who are socialists?

Those who believe in public ownership of the means of production for the common good of society.

What is privatization?

The sale of state-owned enterprises to private investors.

What defines individualism in a political economy context?

The freedom of individuals over collective pursuits.

What is democracy?

A political system in which government is by the people, exercised directly or through elected representatives.

What is totalitarianism?

A form of government in which one person or political party exercises absolute control over all spheres of human life.

Define market economy.

A market-based economic system likely in countries where individual goals are prioritized.

What is the primary difference between common law and civil law systems?

In common law, contracts are detailed and specific; in civil law, contracts are shorter and less specific.

What are the three types of legal systems?

Common Law, Civil Law, Theocratic Law.

What is intellectual property?

Property that is the product of intellectual activity.

What are the three kinds of intellectual property?

Patents, copyrights, trademarks.

What is the Human Development Index (HDI)?

A composite measure assessing development based on life expectancy, education, and income levels.

What does deregulation refer to?

Removing legal restrictions on direct investment by foreign enterprises and international trade.

What is cross-cultural literacy?

An understanding of how cultural differences can affect business practices.

Define norms in the context of culture.

The social rules that govern the actions of people toward one another.

What is the difference between a caste system and a class system?

In a caste system, social position is determined by birth; in a class system, it can change through achievement.

What does class consciousness refer to?

The awareness of one's social class and the implications it has for personal identity and behavior.

What are the five dimensions that Geert Hofstede identified in cultural analysis?

Power distance, individualism versus collectivism, uncertainty avoidance, masculinity versus femininity, long-term versus short-term orientation.