Chapter 1 Summary Flashcards
Identify types of companies active in International Business
Multinational Corporations, Born Global firms, Entrepreneurs, and small firms.
Explain Globalization and how it effects Markets and production
Globalization is the trend towards greater economic, cultural, political, and technological interdependence among national institutions and economies.
-Reduces costs by standardizing market activities
-Opportunity to explore the international market if the home market is small/saturated
-Level income streams
-Access low-cost labor
-Access technical know-how
-Access natural resources that are non-existent/too expensive at home.
Detail the forces that drive Globalization
-Falling barriers to trade and investment
-Those helping to reduce barriers are the WTO, the World Bank, the International Monetary Fund, and regional trading groups.
-Technological innovations (email/video conferencing/intranets/extranets/gps)
Outline the debate about Globalizations impact on jobs and wages
Opponents say: destroys developed-country jobs that are moved to developing countries, lowers wages, job security, and employee morale/loyalty, and exploits the developing nations’ workers, reducing the bargaining power of labor.
Supporters say: fuels efficiency, increases production, raises consumer income, promotes labor market flexibility, outsources jobs to developing nations and helps elevate their living standards, and strengthen labor rights.
Summarize the debate about income inequality
Regarding inequality within nations:
evidence suggests that a developing nation can boost incomes for its poorest residents by integrating itself into the global economy.
In the debate about inequality between nations:
studies find that a nation embracing world trade and investment can grow faster than rich nations, whereas a sheltered economy becomes worse off.
Regarding global inequality:
groups tend to agree that inequality has fallen in recent decades although they differ about the extent of the drop.
Outline the debate about culture, sovereignty, and the environment
Cultures of developing nations are thriving in an age of globalization and that deeper elements of culture are not easily abandoned.
In terms of national sovereignty the case can be made that globalization has not undermined democracy. but has developed it to spread worldwide and has aided progress on many global issues.
Regarding the environment, it seems globalization has not caused a race to the bottom but instead has urged firms to embrace sustainability as a precondition to fostering healthy future markets.
Identify how this course will help you develop skills for your career
This course helps develop critical thinking, business ethics and social responsibility, communication, knowledge application and analysis.
