1: Globalization

Question 1

Define globalization.

Answer 1

Globalization is the trend toward greater political, economical, cultural, and technological interdependence among national institutions and economies.

Question 2

Define globalization of markets.

Answer 2

Globalization of markets is the convergence in buyer preferences in markets around the world.

Question 3

Define globalization of production.

Answer 3

Globalization of production is the dispersal of production activities worldwide to minimize costs or maximize quality.

Question 4

Compare denationalization and internationalization.

Answer 4

Denationalization is less emphasis on national boundaries, while internationalization is cooperation across borders.

Question 5

List the benefits of global markets.

Answer 5

• Reduced marketing costs
• New market opportunities
• Levels income stream

Question 6

List the benefits of global production.

Answer 6

• Reduced labor costs
• Technical expertise access
• Material or input access

Question 7

List the positive impacts of globalization on jobs and wages.

Answer 7

• Eliminates jobs in developed nations
• Lowers wages in developed nations
• Exploits workers in developing nations

Question 8

List the negative impacts of globalization on jobs and wages.

Answer 8

• Increases wealth and efficiency everywhere
• Generates labor market flexibility in developed countries
• Advances economies of developing nations