Ch. 1 Globalization

What is Globalization?

Process of joining global economic systems into one.

What is International trade?

Exporting and importing goods from or to another country

What is the Globalization of Markets?

when markets have that have been seperate come together to form on large market

True or False. Globalization has given small, medium, and large businesses lots of opportunities

True

What is GATT or General Agreement on Tariffs and Trade?

it is a legal agreement between many countires to promote international trade

What is WTO or World Trade Organization

Helps manage, regulate, and police global trade

International monetary fund or IMF is what

it is the international federal reserce. Lender of last resort

What is the United Nations?

promotes peace through international cooperation

What is the G20?

group of 20 are a group of powerful countries that came together to make better trade relations and keep peace in economic means

What are the main drivers of globalization?

It is mainly the internet and how that allows for greater communication

The USA lower exporting percentage is mainly due to what?

other countires developing

What is FDI?

foreign direct investment and it is when you give money to another country

What are multinational enterprises?

any company that has produtive activity in two or more countries

What is Moore’s Law?

the pwoer of microprocessor technology doubles and the cost cuts in half every 18 months

In 1960 what country had the largest share of worldwide GDP?

United States

In 2018 what country has the worlds second largest economy in terms of GDP?

China

In 2030 this country is expected to be the third largest country in terms of purchasing power

India

what country has the largest share of the worlds exports?

china

Managing international businesses can be difficult for what reasons?

different cultures, infrastrucutre, and other complex ideas

An organization whose purpose is to maintain order in international monetary systems. Also known as the lender of last resorts

International Monetary Fund (IMF)

When a firm invests resources (money) in business activities outside of it’s home country

Foreign direct investment (FDI)

An organization whose purpose it to help, manage, regulate and police the global marketplace, and promote the establishment of multinational treaties to govern the global business system

World Trade Organization (WTO)

Medium and small businesses involved in international business

Medium and small businesses involved in international business

Mini-multinationals

An economic term that describes the inputs used in the production of goods or services to make an economic profit -Land – topography, Labor – specialization, Energy, Capital

Factors of production

An organization whose purpose is to preserve peace through international cooperation and collective security

United Nations (UN)

The shift toward a more integrated and interdependent world economy

Globalization

A legal agreement between many countries, whose overall purpose is to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas.

multilateral trade agreement