Globalisation

Question 1

What is globalisation?

Answer 1

The shift towards a more integrated and independent word economy.
A process rather than a fact trend or structure
Freedom is the central issue

Question 2

What are the components of globalisation?

Answer 2

Consumption
Markets
Production

Question 3

What is the globalisation of markets?

Answer 3

Merging of historically distinct and separate national markets into one huge global marketplace.
Most global markets are not typically markets for consumer products
Where national differences in tastes and preferences can still be important enough to stop integration but rather industrial goods and materials that serve universal needs.

Question 4

What is the globalisation of production?

Answer 4

The shift towards a more integrated and independent world economy
A process rather than a fact trend or structure
Freedom is the central issue

Question 5

Why do firms engage in international business?

Answer 5

To expand sales 
To acquire resources 
Lower costs 
Operating knowledge 
To diversify or reduce risks

Question 6

What necessitated the emergence of global institutions?

Answer 6

To help manage regulate and police the global marketplace

To promote the establishment of multinational treaties to govern the global business system