Chapter 4: Case 1, "The Comeback Accelerates"

Question 1

What is a “flatliner”’s view on globalization?

Answer 1

Technology is unstoppable: powered by innovations in hardware and software, eventually anyone, anywhere, will be able to trade anything, anytime.

Question 2

What do some believe is the affect of billions of new people entering the global marketplace?

Answer 2

Every skill done in the US or Europe will be able to be done in an emerging market for as little as 10 cents on the dollar. (Value of US/European innovations decreases as new economies learn how to do the same thing, cheaper)

Question 3

What is the pessimistic view of globalization?

Answer 3

Slowing market trends signal the triggering of deglobalization.

Question 4

Why is it important to understand the history of globalization?

Answer 4

Understanding our past helps us more accurately predict future trends. (But the text also says it’s really hard to predict trends. So we’re basically in really big trouble.)

Question 5

What three entities make up the “Triad”? What did the Triad do?

Answer 5

The United States, Japan, and Western Europe. They created the foundation of globalization and international business.

Question 6

By 2050, four of the six largest economies in the world will be in greater Asia. What are these countries?

Answer 6

Japan, China, India, Russia

Question 7

Collectively, the accelerating rise of emerging economies signaled what?

Answer 7

The wealthy countries of the 20th century would not dominate the global economy in the 21st century.

Question 8

We are currently experiencing roughly _____ times the economic acceleration of the industrial revolution.

Answer 8

TEN!
10!
DIEZ!

Question 9

Many analysts are not surprised at the rise of China as an economic power. Why?

(a) The Chinese are incredibly frugal.
(b) China’s rice and cotton production have always been dominant world forces, accounting for over 21% of the world’s exports in those resources.
(c) In 1850, China produced the highest percent of all goods consumed in the world.

Answer 9

(c) In 1850, China produced the highest percent of all goods consumed in the world. In 2009, it reclaimed that spot, producing 19.8% (but fell the next year to the US).

Analysts see China’s recent rise to power as a cycle; it was bound to happen. Note that (a) and (b) were completely made up.