Globalization

Flashcards for reviewing Globalization lecture notes.

What is Globalization?

The process by which businesses develop international influence or operate across borders.

What does the Globalization of Markets mean?

Integration of national markets, reduced trade barriers, similar consumer tastes, opportunities for all sizes of companies, and consistent competition.

What areas does Globalization encompass?

Various interconnected processes, including economic, cultural, political, and technological exchanges.

What is Glocalization?

The adaptation of global products and strategies to local markets and cultures, blending global and local elements.

What is the Globalization of Production?

The process of sourcing goods and services globally to take advantage of cost and quality differences.

List some factors that make companies globalize production.

Cost efficiency, access to expertise & resources, and optimized production chains.

Name some key factors of production.

Labor, land, capital, and energy.

What are the four key determinants of national competitive advantage in Porter's Diamond Model?

Factor conditions, demand conditions, related & supporting industries, and firm strategy, structure & rivalry.

What are impediments to Optimal Global Dispersion?

Trade barriers, barriers to FDI, transportation & logistics costs, political & economic risk, and global supply chain coordination.

Name some key drivers of globalization.

Economic, cultural, political, technological and environmental.

What are some examples of Economic Globalization?

Multinational corporations, trade agreements, and outsourcing.

What are some examples of Cultural Globalization?

Spread of cultural products, immigration, and language adoption.

What are some examples of Political Globalization?

International organizations and international law.

Why are global institutions important?

They establish rules, resolve disputes, provide financial support, and foster global collaboration.

What is the mission of the WTO?

To facilitate and regulate global trade by setting and enforcing rules for international commerce.

What is the mission of the IMF?

To maintain exchange rate stability, facilitate balanced growth of international trade, and provide financial support to countries in economic distress.

What is the mission of the World Bank?

To provide financial and technical assistance to developing countries.

What is the mission of the UN?

To foster international cooperation and provide a platform for dialogue, diplomacy, and global problem-solving.

What is the G20?

A premier forum for international economic cooperation, bringing together the world’s major economies.

Name some results of Technological Globalization.

Spread of technology and technological innovation across borders.

What is Environmental Globalization?

Increasing interconnectedness and standardization of environmental practices and regulations across national borders.

What are consequences of Declining Trade and Investment Barriers?

Increased international trade and foreign direct investment.

What are some implications for the Globalization of Production?

More economical location of production in separate locations and convergence of consumer tastes.

What is the Changing World Output?

Developing nations predicted to account for more than 60 percent of world economic activity by 2030.

What is an MNE?

Multinational enterprise; any business that has productive activities in two or more countries.

What is a result of the Changing World Order?

Former communist countries present export and investment opportunities.

What are the upsides to the Global Economy of the Twenty-First Century?

Globalization is beneficial to consumers as it decreases the cost of manufacturing.

Define Isolationism.

Nations prioritize their own interests and minimize international involvement.

What are some Factors Influencing Isolationism?

Economic Vulnerability and Disruption, Political Shifts and Populism, Cultural and Social Factors.

What are anti-globalization protestors concerned about?

Detrimental effects on living standards, wage rates, and the environment.

What do critics of globalization argue?

Falling trade barriers allow firms to move manufacturing activities to countries where wage rates are much lower, destroying manufacturing jobs in wealthy advanced economies.

What are some Managing Challenges in the Global Marketplace?

Managing International Business is more complex for organizations and Must find ways to work within limits imposed by government.

Name some benefits of International Business and Globalization.

Access to New Markets, cost Savings, Access to Talent, Increased Competition and Economic Growth.

What are some Challenges of International Business and Globalization?

Cultural and Language Barriers, Political and Economic Risks , Logistical Complexities, Increased Competition, and Uneven Distribution of Benefits

What are some Key Strategies for Success in International Business?

Market Research and Analysis, Adaptation and Localization, Building Strong Relationships, Embracing Technology, and Developing a Global Mindset