gbm 1

Question 1

Globalization

Answer 1

• The shift toward a more integrated and interdependent world economy. - The merging of historically distinct and separate national markets.

Question 2

What is Global Business?

Answer 2

• Any business activity carried out across national borders. - Involves an interdependent, integrated global economic system.

Question 3

Globalization of Markets

Answer 3

• Distinct national markets are merging into a global market - Tastes and preferences of consumers worldwide are converging.

Question 4

Globalization of Production

Answer 4

• Firms source goods and services globally to capitalize on differences in factors of production.- Leads to cost reduction and product quality improvement.

Question 5

Driving Forces of Globalization

Answer 5

• Decline in barriers to free flow of goods, services, and capital. - Technological advancements.- Need for global institutions to manage the global marketplace.

Question 6

Why Do We Need Global Institutions?

Answer 6

• Manage, regulate, and police the global marketplace.<br></br> - Promote multinational treaties.<br></br> - Examples include WTO, IMF, World Bank, UN.

Question 7

What Does Globalization Mean for Firms?

Answer 7

• Lower barriers to trade and investment.<br></br> - Technological advancements enable global operations.<br></br> - Worldwide market expansion.

Question 8

Can a firm stay isolated?

Answer 8

• No, due to global interdependence and competition.

Question 9

Differentiating features of GB

Answer 9

• Political, legal, cultural, economic differences.<br></br> - Currency and trade restrictions.<br></br> - Higher cost of distance.

Question 10

Why firms become global?

Answer 10

• Push factors (reactive) and pull factors (proactive).<br></br> - Profitability, growth, competition, government policies.

Question 11

Is an Interdependent Global Economy a Good Thing?

Answer 11

• Lower prices, economic growth, more jobs vs. job losses, environmental degradation, cultural imperialism.

Question 12

How does Globalization affect Jobs and Income?

Answer 12

• Job losses vs. specialization, trade benefits.

Question 13

Home Markets under Attack from Foreign Competitors

Answer 13

• Increased competition globally across industries.

Question 14

How Does Globalization Affect National Sovereignty?

Answer 14

• Shifts power from national governments to global organizations. - Debate on democracy and control over policies.

Question 15

How is Globalization Affecting the World’s Poor?

Answer 15

• Widening gap between rich and poor nations. - Debate on the best strategies for economic improvement.

Question 16

How Does The Global Marketplace Affect Managers?

Answer 16

• Complexities in managing international vs. domestic businesses. - Government intervention, currency conversions.