Multi National Exam one Flashcards
What is globalization
Integration of markets
* Integration of production
Examples of globalization
Starbucks, Tesla
Measuring Globalization
International Trade
Exports and imports of merchandise and services
- International Investment
FDI and FPI
- Global Institutions and Agreement
THE GLOBAL INSTITUTIONS
World Trade Organization (WTO)
* International Monetary Fund (IMF)
* World Bank
* United Nations (UN)
- The Paris Agreement on Climate Change (2015)
DRIVERS OF GLOBALIZATION
Declining trade and investment barriers
2. Technological change
Social Progress Index
Basic Human needs
Foundations of well being
Oppurtunity
Globalization Debate
how fast markets are merging together
ex: Coca-Cola and McDonald’s in practically every country reflects the fact that some consumer tastes are coming together, at the likely expense of local beverages and foods.
If critics are correct three things must be shown
the share of national income received by labor, as opposed to the share received by the owners of capital
-if economic growth and rising living standards in advanced economies have offset declines in labor’s share
- the decline in labor’s share of national income must be due to moving production to low-wage countries, as opposed to improvement in production technology and productivity.
Three things that make a politicial system are..
Political, legal, economic
What is a political system
A political system is the system of government in a nation
Politicial systems can be assessed
the degree to which they emphasize collectivism as opposed to individualism
* the degree to which they are democratic or totalitarian
Forms of political system
Democracy vs. Totalitarianism
Most common form today is representative democracy: elected
representatives vote on behalf of constituents
Other characteristics of democracy
freedom of expression,opinion organization; free media; regular elections;
ECONOMIC SYSTEMS
Market Economy
* Command Economy
* Mixed Economy
LEGAL SYSTEM
The legal system of a country is the rules, or laws, that
regulate behavior, along with the processes by which the
laws of a country are enforced and through which
redress for grievances is obtained.
Different Legal Systems
The common law system
* The civil law system
* The theocratic law system
What is Culture?
A system of values
and norms shared
among a group of
people and, when
taken together,
constitute a design
for living.
Elements of National Culture
Languages
Religion
Geography
Demography
Educational system
History
Economic philosophy
Political philosophy
Culture and Workplace: The Hofstede’s Cultural
Framework
Power Distance:
Individualism:
Masculinity:
Uncertainty Avoidance:
Cultural Norms and Value Systems
Religion
Politicial Philsophy
Economic Philsophy
Education
Language
Social Structure
Mercantilism: mid-16th century
A nation’s wealth depends on accumulated treasure
* Gold and silver are the
currency of trade.
* Theory says you should
have a trade surplus.
- Maximize exports through subsidies.
- Minimize imports through tariffs
and quotas.
* Flaw: “zero-sum game”.
Absolute Advantage:
capability of one country to
produce the same amount of a product with less input
than another country
COMPARATIVE ADVANTAGE
a
country to specialize in the production of those goods
that it produces most efficiently and to buy the goods
that it produces less efficiently from other countries
The H-O Theory
Export goods that intensively use factor endowments
which are locally abundant.
- Import goods made from locally scarce factors.
- Patterns of trade are determined by differences in factor
endowments - not productivity.
