Chapter 1 Flashcards
Two of the three main components of globalization are?
Globalization of markets and production
The trend towards a more integrated global economy is known as what?
Globalization
The sourcing of goods and services from locations around the globe is knows as?
The globalization of production
The global dispersal of production activities is found in what size firms?
In all sizes of firms
Coca cola and Pepsi are examples of what?
Global competition
Globalization results in a greater degree across markets of what?
Uniformity
What area are most global markets?
Industrial goods
The ______ was created in 1944 by 44 nations that met in Brenton Woods, New Hampshire
International Monetary Fund
The ________ is seen as a lender of last resort to nation states whose economies are in turmoil with currencies that are loosing value
International Monetary Fund
The two macro factors leading the trend of greater globalization are:
Decline in trade barriers (free flow of goods and services) and technological change
With 192 member countries the ____ was created to preserve peace through international cooperation
United Nations
Investing resources in business activities outside a firm’s home country is referred to as?
Foreign direct investment
The ______ is a treaty designed to remove barriers to free flow of goods and services and capital between nations
General Agreement on tariffs and trade
When a country exports goods or services to consumer in another country it’s known as what?
International trade
Under the GATT there have been 8 rounds of negotiations among member states the most recent one was?
Uruguay round
What does GATT stand for?
General Agreement of Tariffs and Trade
The agency established in the 1993 Uruguay round is known as?
World Trade Organization
If a company has a complain about a international trade issue who could they take it to?
World Trade Organization
Have the average tariff rates risen or fallen since 1950
Fallen
Between 1990 and 2000 the flow of FDI worldwide grew how many times?
5
Between 1950 to 2000 the world trade grew by 20, and the world output grew by what?
12%
What does WTO stand for?
World Trade Organization
The lowering of trade barriers to international trade has done what?
Enabled firms to approach the world as their market
Evidence suggests that the FDI is playoff what role in world economy?
An increasing role
What is the major cause for the lowering of trade barriers?
Technological change
What is the most important technological innovation that has been developed?
Microprocessor
____ is the theory that predicts the power of the microprocessor technology doubling and the cost of production falls every 18 months
Moore’s law
The greatest potential of the Web is between what areas?
Business to business
Due to containerization what have transport costs in terms of globalization done?
They have dropped
Most dominant power in the 1960s?
America
Which is the only country who has not seen a drop in world output?
China
2006 worlds largest exporter?
America
Between 2008-9 Canada’s imports did what?
They fell
What kind of enterprise is a business that has productive actives in two or more countries?
Multinational
What are mini-multinationals?
Medium- small sized multinationals
The decline of U.S. Dominance can be linked to two factors: globalization of the worlds economy and what?
Japan’s rise to the top rank of economic powers
Outsourcing has extended to what Canadian industry?
iT
What is the primary purpose of the world trade organization?
To arbitrate trade disputes
The WTO and trading polices were established by what?
GATT
