Witt, M. A., Lewin, A. Y., Li, P. P., & Gaur, A. (2023). Flashcards
Decoupling in international business: Evidence, drivers, impact, and implications for IB research. Journal of World Business, 58(1), 101399: 1-11.
What is the primary distinction between deglobalization and decoupling as described in the article?
Deglobalization is the global decline in economic interdependence, whereas decoupling refers specifically to the separation between two nations or economic blocs.
According to the article, which factor has been the most significant driver of US-China decoupling?
A) The digital revolution and automation.
B) Political tensions and strategic geopolitical rivalry.
C) The declining cost of production in China.
D) Increased consumer demand for domestic products.
b.
The article discusses the impact of geopolitical tensions on decoupling. What is an example of a policy action that has accelerated this process?
A) The expansion of China’s Belt and Road Initiative (BRI).
B) The increase of Chinese investment in African nations.
C) US restrictions on semiconductor exports to China.
D) The decline in global oil prices affecting US-China trade.
c.
Which of the following statements about the role of technology in decoupling is MOST accurate based on the article?
A) Technology, particularly digitalization, has made it impossible for firms to decouple.
B) Advances in automation, additive manufacturing, and digital platforms have lowered exit barriers for firms wanting to relocate.
C) Technological progress has strengthened the interdependence between China and the United States.
D) The reliance on Chinese tech firms for AI development has reduced the impact of decoupling.
b.
The article highlights two key dimensions that determine the extent of decoupling across industries. What are they?
A) Industry profitability and government subsidies.
B) Strategic importance and reshorability.
C) Supply chain complexity and labor availability.
D) Capital investment requirements and market growth potential.
b.
Reshorability
The ease with which an industry can relocate production back to the home country or a friendly nation. Industries with low labor dependence and high automation potential (e.g., pharmaceuticals) have high reshorability, while labor-intensive industries (e.g., textiles) have low reshorability.
What does the article predict about the future of decoupling and global economic relations?
A) Decoupling is a temporary phenomenon and will reverse as economies stabilize.
B) The world is likely to form two major economic blocs—one led by the US and the other by China.
C) China will fully integrate into the Western economic system within the next decade.
D) The trend of decoupling will only impact trade but not investment flows.
b.
Which of the following research questions does the article suggest for further investigation in International Business (IB)?
A) How will geopolitical tensions affect MNE location choices and investment strategies?
B) What is the long-term impact of deglobalization on global climate change?
C) Will automation in supply chains eliminate the need for international trade?
D) How does consumer behavior shift due to government trade policies?
a.
Which of the following best describes the concept of decoupling?
The process of strengthening economic and political dependence between countries.
The process of weakening interdependence between. nations or blocs of nations.
A technique to accelerate trade flows by removing traffis and barries.
b
According to Witt et al. (2023), which of the following is NOT a key driver of economic decoupling between the U.S. and China?
A) Political tensions and trade wars.
B) Advancements in digitalization and 3D printing.
C) Environmental regulations and climate change policies.
c
What is one of the main consequences of U.S.-China economic decoupling on multinational companies?
A) A decrease in the need for supply chain diversification.
B) A shift toward reshoring and “friend-shoring” production.
C) A higher dependence on Chinese manufacturers.
B (Multinational companies relocate production to allied countries to reduce dependency).
How does technology contribute to economic decoupling, according to the article?
A) It enables authoritarian regimes to strengthen control over domestic economies.
B) It eliminates the need for international trade entirely.
C) It increases reliance on Chinese manufacturing capabilities.
A (Digital technology enhances control, reinforcing the willingness to decouple).
