Globalization and Business Responsibilities

Question 1

Globalization

Answer 1

a process of decreasing constraints on the interactions among the nations and peoples of the world.

Question 2

Economic globalization

Answer 2

the integration of fragmented markets into a global economy.

Question 3

Political globalization

Answer 3

the process by which world power relationships change, and there is a loss of sovereignty by the states.

Question 4

Social or cultural globalization

Answer 4

the emergence of a worldwide cultural system.

Question 5

International Non-government Organizations (INGOs)

Answer 5

groups that hold shared values and attitudes about the issues relating to globalization and advocate for changes to improve conditions in developing countries

Question 6

INGOs are also referred to as

Answer 6

transnational non-government actors (TNGOs) or transnational social movement organization (TSMOs)

Question 7

Supranational Institution

Answer 7

an international organization that transcends national boundaries where the member states share in decision making on particular issues pertaining to the members

Question 8

The World Bank

Answer 8

Provides financial and technological assistance to developing countries

Question 9

The International Monetary Fund (IMF)

Answer 9

Fosters financial stability, international trade, employment, and reduction of poverty.

Question 10

International Labour Organization (ILO)

Answer 10

UN agency that seeks to promote social justice and internationally recognized human and labour rights.

Question 11

World Trade Organization (WTO)

Answer 11

Coordinates agreements reducing trade barriers

Question 12

Globalization Implications for Business

Answer 12

• Damage to environment
• Support for oppressive regimes
• Criticism of marketing practices (e.g., tobacco, pharmaceutical, baby formula, etc.)
• Arms trade
• Treatment of employees (e.g., sweatshops)
• Treatment of indigenous peoples
• Genetic modification of plants and animals
• Corruption and bribery

Question 13

Argument for Globalization (Pros)

Answer 13

• Trade leads to more efficient production of better goods and services
• Better opportunities for employment and higher incomes
• Transfer of capital, technology, intellectual property, skilled labour

Question 14

Arguments against Globalizatins (Cons)

Answer 14

• Benefits received by only a few
• Creates unemployment
• Increased poverty and inequality
• Causes periodic financial crises
• Destroys local environment
• Destroys cultures
• Violates human rights
• Questionable payments made
• Disrespect of intellectual property/Traditional Knowledge