Chapter 2: Globalization of markets and the internationalization of the firm Flashcards
1
Q
- ongoing economic integration and growing interdependency of national economies
- both compels and facilitates firms to expand abroad (internationalize)
A
globalization of markets
2
Q
the tendency of companies to deepen their international business activites systematically
A
internationalization of firms
3
Q
- rise of manufacturing: cross border trade of commodities, largely by trading companies
- Triggers: introduction of railroads and ocean transport
- 1830 to late 1800’s, peaking in 1880
what phase of globalization is this ?
A
First phase
4
Q
- emergence and dominance of early MNEs (mainly from Europe and North America) in manufacturing, extractive and agricultural industries
- Triggers: rise of elctricity and stell production
- 1900 to 1930
which phase of globalization is this ?
A
Second phase
5
Q
- focus by industrializing western countries to reduce trade barriers; rise of MNEs from Japan; development of global capital markets; rise of global trade names
- Triggers: formation of general agreement on tariffs and trade; conclusion of world war 2; marshall plan to reconstruct Europe
which phase of globalization is this ?
A
Third phase
6
Q
- rapid growth in cross border trade of products, services, and capital; rise of internationally active SMEs and services firms; rising prosperity of emerging markets
- Triggers: privatization of state enterprises in transition economies: revolution in information, communication, and transportation technologies; remarkable growth of emerging markers
- 1980s to about 2006
which phase of globalization is this ?
A
Fourth phase
7
Q
- leveraging technology to facilitate trade and local production; rising trade in digitally enabled services but slowing growth of trade in merchandise goods
- triggers: rise of digital technologies, and other new technologies, which are boosting manufacturing productivity and the efficiency of international trade in services
- 2007 to present
which phase of globalization is this ?
A
Fifth phase
8
Q
- driving forces or causes of globalization
- dimensions or manifestations of globalization
- Firm-level consequences of market globalization
- societal consequences of market globalization
A
organize framework of market globalization
9
Q
- worldwide reduction of barriers to trade and investment
- market liberalization and adoption of free markets
- industrialization, economic development, and modernization
- integration of world financial markets
- advances in technology
which organized framework of market globalization is this ?
A
driving forces
10
Q
- integration and interdependence of national economies
- growth of global investment and financial flows
- convergence of buyer lifestyles and preferences
- globalization of market globalization
- globalization of services
which organized framework of market globalization is this ?
A
dimensions of market globalization
11
Q
extends economic activities across the globe
A
globalization of capital
12
Q
- can be on the firms value chain
which organized framework of market globalization is this ?
A
Firm level consequences of market globalization: internationalization of the firms value chain
13
Q
the sequence of value adding activites thte firm performs in the course of developing, producing, marketing, and servicing a product
A
firms value chain
14
Q
the rapid spread of monetary and financial crisis
A
contagion
15
Q
- contagion
- loss of national sovereignty
- offshoring
- reshoring
- effect on the poor
- effect on sustainability and natural environment
- effect on national culture
- which organized framework of market globalization is this ?
A
societal consequences of market globalization
