Globalization Flashcards
Refers to the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies.
Globalization
what are the characteristics of globalization?
denationalization & internationalization
the socio-economic reform process of eliminating trade, cultural, information technology and political barriers across countries.
Globalization
Reshapes our lives and forces industries to grow and be more competitive
Globalization
process of turning over publicly owned and operated businesses/services to private companies.
denationalization
national boundaries are becoming less relevant
denationalization
process of designing products to meet the needs of users in many countries
internationalization
what are the areas of business in which globalization has a profound effect?
globalization of markets
globalization of production
refers to the convergence in buyer preferences in markets around the world
globalization of markets
refers to the dispersal of production activities to locations that help a company achieve its cost-minimization or quality-maximization for a good or service
globalization of production
what are the forces that drive globalization?
falling barriers to trade and investment
&
technological innovation
what are the forces that drive globalization?
falling barriers to trade and investment
&
technological innovation
what are the falling barriers to trade and investment?
- general agreement on tariffs and trade (GATT)
- world trade organization
- regional trade agreements
- trade and national output
a treaty that promotes free trade and reduces tariffs and non-tariff barriers to international trade.
General Agreement on Tariffs and Trade (GATT)
giving protection to copyrights, trademarks and service marks, and patents.
Intellectual property rights
also known as custom duties; tax imposed on goods entering at its borders
Tariffs
are limits on the quantity of an imported product e.g., quota
non-tariff barriers
an international organization that enforces the rules of international trade
World Trade Organization (WTO)
agreement among the U.S, Canada, and Mexico designed to remove tariff barriers between the three countries
North American Free Trade Agreement
a political and economic union of 28 member states that are located primarily in Europe. promotes peace, establishes a unified economic and monetary system.
European Union (EU)
established in Bangkok on August 8 1967 by 5 countries. promotes economic growth, social progress, and cultural development in the southeast asian region
ASEAN Community
value of all goods and services produced by a domestic economy over a one-year period.
Gross domestic product
value of all goods and services produced by a country’s domestic and international activities over a one-year period.
gross national product
nation’s GDP or GNP divided by its population
GDP or GNP per capita
what are the technological innovation?
- e-mail and video conferencing
- internet and world wide web
- company intranets and extranets
advancement in transportation technologies
provides financing for national economic efforts
World bank
works to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
International monetary fund (IMF)
arguments against globalization?
- eliminates jobs in developed nations
- lowers wages in developed nations
- exploit workers in developing nations
arguments favoring globalization?
- increases wealth and efficiency in all nations
generates labor market flexibility in developed nations - advances economies of developing nations
what are the key challenges facing international business?
- technological sophistication
- international volatility
- international workforce challenges
- workforce quality and competitiveness
- increasing work diversity
the process of sending jobs overseas and is not limited to big multinationals.
offshoring
when firms that offshored skilled manufacturing jobs or knowledge workers have pulled back to their home countries.
Reshoring
