Globalization

Question 1

What is Globalization?

Answer 1

Growth of international exchange of goods, services, and capital which increase the levels of integration that characterizes economic activity. Includes the movement of knowledge and information

Question 1

What is internalization?

Answer 1

Designing products and services by making it adaptable so it can enter different markets

Question 2

What is Localization?

Answer 2

Adapting a product to suit the specific target market to make it highly relevant. (Cultural Adapatation). Includes consideration on cultural factors on the target market.

Question 3

What is World Systems Theory?

Answer 3

A world-system is a multicultural territorial division of labor in which the production and exchange of goods and materials is important for surviving everyday life. This division of labor is explained as the forces of production of the world economy and the reason for the existence of the two interdependent regions called core and periphery. A perspective the views globalization as the expansion of capitalist system.

Question 4

Who is associated with the World Systems Theory?

Answer 4

Associated with Immanuel Wallerstein in 1974

Question 5

What is a capitalist system?

Answer 5

political and economic system where trade, industries, and economy in general are dominated by private ownership instead of being state owned

Question 6

What is the core in the world systems theory?

Answer 6

advanced/highly developed countries with higher level of education and more tech generate more wealth in economy

Question 7

What is the semi-periphery in the world systems theory?

Answer 7

defense zone between the two. May have mix of the two. May be exploited yet will also exploit.

Question 8

What is the periphery in the world systems theory?

Answer 8

less developed country with lower levels of education and tech, less wealth

Question 9

Core is ____________ extensive; while Peripheral are ___________.

Answer 9

Core = Capital Extensive
Peripheral = Labor Intensive

Question 10

What is the world polity theory?

Answer 10

State remains as an important component of world society and societies become more similar in terms of governance and policy. Considered as a response to modernization theory. It is assumed that countries will go on the same stages of development because the governments are quite similar.

Question 11

What is the world culture theory?

Answer 11

World culture is new and important, but it is less homogenous than world polity scholars imply. World culture is new and important, but it is less homogenous than world polity scholars imply. Makes globalization as both compression of the world and the intensification of consciousness of the world as a whole.

Question 12

What is relativization?

Answer 12

This means that each unit emerging in the world order takes shape depending on its surroundings. For example, as nation-states become subject to universal standards derived from a common conception of humankind, citizenship in those societies become relativized.

Question 13

What is emulation?

Answer 13

Although globalization cannot create a common culture, where everyone has the same values and beliefs, it can create a single arena in which all actors pursue their goals with comparison to others, employing at least some common standards as yardsticks.

Question 14

What is glocalization?

Answer 14

The ideas and processes inside globalization are interpreted differently according to the point of particular groups and their history. In other cases, this is done strategically, for example when global marketers create local traditions on the assumption that difference sells.

Question 15

Differentiate homogenization to heterogenization

Answer 15

The ideas and processes inside globalization are interpreted differently according to the point of particular groups and their history. In other cases, this is done strategically, for example when global marketers create local traditions on the assumption that difference sells.

Question 16

Explain inherent dynamics of globalization

Answer 16

The world culture theory shows the process as ongoing and open-ended, this means that all characteristic of world culture, discussed above, entails continual change, where cultural conflict is the common mechanism.

Question 17

Explain movements of de/reglobalization

Answer 17

Globalization triggers resistance or reaction. For example, the Islamic fundamentalism. While against in the form of globalization that builds equal cultures in the world, fundamentalism replace its own global vision. The fundamentalists define global fundamentals and operate in terms of globally dim ideas.

Question 18

Explain multiple sources

Answer 18

While world culture theory emphasizes the role of reflexivity and worldviews in globalization, in principle change can originate anywhere. World culture theory is causally agnostic.

Question 19

What is Neoliberalism?

Answer 19

While world culture theory emphasizes the role of reflexivity and worldviews in globalization, in principle change can originate anywhere. World culture theory is causally agnostic.

Question 20

Neo means what?

Answer 20

means new or revived

Question 21

What is the core assumption in Neoliberalism?

Answer 21

Self – regulating market is a core assumption in classic liberalism (Munck, 2005)

Question 22

What is a free market?

Answer 22

• with little or no government control
• Free to be an investor or entrepreneur
• Price is determined by the seller
• Free to own, buy, and sell

Question 23

What is protectionism?

Answer 23

refers to actions or policies that allow the government of a country to promote domestic or local producers, and thereby boost its own production of goods and services by imposing tariffs or otherwise limiting foreign goods and services in the marketplace.

Question 24

What is privatization?

Answer 24

is the transfer of state owned properties or businesses to the private sector.

Question 25

What is trade?

Answer 25

One of the most important factors that started the cross- border relationship among nations.
Involves transfer or exchange of goods and services from one person to another or one country to another

Question 26

Ancient network of trade routes that connect the east and the west. Have been useful to carry out goods and services. Silk is one of the most common products for trading at that time.

Answer 26

Silk Roads

Question 27

Define Globalization 4.0 (20th Century)

Answer 27

• Considered as the Golden Age of Globalization
• Movement of people, goods, and services are free and significant
• The world is dominated by two countries
• Cyber world is the new partition of globalization

Question 28

What is Market Globalism?

Answer 28

A rising political system

Question 29

What are the claims under market globalism?

Answer 29

• Globalization is focused on the global integration and liberalization of markets.
• Globalization is irreversible and inevitable.
• No one is in charge of globalization.
• Globalization benefits everyone (. . . in the long run)
• Globalization Furthers the Spread of Democracy in the World.
• Globalization requires a war on terror.

Question 30

What are the Vital Functions of Free Market?

Answer 30

1. Rationality
2. Efficiency
3. Alleged ability to bring a greater social integration and material progress can only be realized in a liberal society that values and protects individual freedom

Question 31

The predicted path of globalization is predicted to be

Answer 31

1. Irresistible
2. Inevitable
3. Irreversible

Question 32

What is Economic Globalization?

Answer 32

Distinguished by the increasing integration of economies around the world through the movement of goods, services, and capital across borders. Economic globalization is not only about extending and increasing economic activities (e.g production, trade etc.) but more of creating a functional integration among the said activities across borders.

Question 33

What are the elements of Economic Globalization?

Answer 33

1. International Trade
2. Foreign Direct Investment
3. Capital Market Flows
4. Migration (Movement of Labor)
5. Diffusion of Technology

Question 34

Define International Trade

Answer 34

• Economic transactions made between countries
• Trade transactions include both goods (tangible products) and services (intangible commodities).
• The production chains of goods and services is getting more and more complex and global (Ospina, 2018).
• Products are sourced, assembled, packaged, and sold in different areas of the world.

Question 35

Define Mercantilism

Answer 35

• Before the 19th century, most European countries tried to do prioritize self- sufficiency.
• Mercantilism aimed to minimize imports and maximize exports while increasing the supply of gold in the country.
• Formed barriers to international trade, where countries aimed to produce everything on their own.

Question 36

Define Gross Domestic Product

Answer 36

• Totals the sum of all the final goods and services a country produces in a year
• Countries human, technological, and financial resources determine what they can produce efficiently and productively

Question 37

Define Foreign Direct Investment (FDI)

Answer 37

• A foreign investor take interest and take control in firms or businesses in another country.
• Creates a stable and long term connection between economies.
• When investment is made, the desired standard of living and strong economic recovery are present.
• A category of cross-border investment in which an investor resident in one economy establishes a lasting interest in and a significant degree of influence over an enterprise resident in another economy.

Question 38

Define Capital Market Flows

Answer 38

refers to the movement of capital (money for investment) from one country to another as a consequence of investment flows. In this case, the money being referred to is not the money that flows between countries to purchase each other’s goods and services, but rather referring to the money flowing into and out across the world such as stock and bond, as well as factors such as real estate and cross- border mergers and acquisitions.

Question 39

Define Migration

Answer 39

• Movement of people from one country to another
• For sending countries, the short-term economic advantage of emigration (moving abroad) is located in remittances.

Question 40

Define Diffusion of Technology

Answer 40

• Technology plays a vital role in expediting the process of globalization.
• major facilitator and driving force in globalization process
• Technological diffusion is defined as the spread of technology among countries
• Technological growth and economic growth rates were linked, and that increase in technological progress helps improve the situations of the poor