semi-globalization

Question 1

International Trade

Answer 1

Exchange of goods or services across national borders

Question 2

International Portfolio (indirect) investment

Answer 2

ownerwship of foreign securities such as stock or bonds to generate financial returns

Question 3

semi-globalization

Answer 3

the forces of globalization and localization working together

Question 4

MNC

Answer 4

a firm that engages in direct investment in at least one working affiliate in another country

• some believe it should be at least 5 countries
• some believe the company should be a certain size

Question 5

foreign direct investment

Answer 5

when a firm directly invests in production or other facilities across national borders which is directly controls

Question 6

globalization

Answer 6

the widening, deepening,and speeding up of worldwide interconectedness in all aspects of contemporary life

Question 7

globalization factors

Answer 7

technological
- increased communications, reduced transport costs, cheap internet
economic factors
- limited domestic market, natural resources, matching competitors, consumer needs
political/regulatory
- government incentives (export processing zones), reduction in barriers

Question 8

CAGE

Answer 8

cultural
- languages, ethnicity, religion, values, norms
administrative
- corruption, legal rules, political risk, government policies
geographic
- physical remoteness, lack of common border, lack of sea or river, time zone, climate
economic
- incomes, costs, human and natural resources