GLOBALIZATION Flashcards
trade of goods, services, technology, capital, and
knowledge across national borders and at a global or transactional scale. It involves
cross-border transactions of goods and services between two or more countries.
International Business
purchased abroad and brought into a country.
Imports
sold abroad and sent out of a country.
Exports
operates facilities (such as factories and
distribution centers) in many countries around the world.
Global business
facilities only in its home country.
International business
spread of products, technology, information, and jobs across national borders and cultures. An
interdependence of nations around the globe fostered through free trade. Therefore, it is the change in business from a company associated with single country to one that operates in multiple countries.
Globalization
a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.
- Free Trade Agreement
brought advances in transportation and communication in the 19th century that eased trade across borders
The Industrial Revolution
- Technological Innovation brought by
Globalization
- E-business
- E-mail and videoconferencing
- Internet
- Company Intranets and Extranets
MNE
Multinational Enterprise – mostly discussed foreign entrant
FDI
Foreign Direct Investment: investment in, controlling, and managing value-added activities in other countries.
Characteristics of Globalization (Tt Mp Ci Mdk)
Trade and Transactions
Migration of People
Capital and Investment
Movements and dissemination of knowledge
Primary characteristics of globalization (FT L C EG CG PG O L PA)
Free Trade
Liberalization
Connectivity
Economic Globalization
Cultural Globalization
Political Globalization
Opportunity
Learning
Product Advantage
without government interference
Free Trade
freedom for business people or industrialists to establish a business.
Liberalization
free exchange of ideas, culture, knowledge, and information technology
Connectivity
exchange of services, goods, technology, and capital.
Economic Globalization
exchanges of social behavior across national and regional borders.
Cultural Globalization
growth and prosperity of the political system worldwide.
Political Globalization
opportunity for everyone to prosper, anyone can be a developing/developed country.
Opportunity
opens doors for abundant knowledge and experience from different countries
Learning
open for trading
Product Advantage
IMF
International Monetary Fund
organization of 190 countries that
facilitates international trade
International Monetary Fund
