Phases of Globalization
The first phase of globalization was characterized by what?
The growth of Railroads
Which drivers of globalization has had their barriers reduced?
Trade and Investment
What is one benefit to globalization of firms?
Access to larger markets.
What technology has most significantly changed how businesses communicate globally?
Cell Phones
What is a societal consequence of market globalization?
Offshoring and Flight of jobs.
What Phase of globalization began around the 1900's and was associated with the rise of electricity and steel production?
2nd Phase
What country transitioned to market-based economies and adoption of free trade?
China
How can globalization lead to increased competition for domestic firms?
It allows foreign firms to enter local markets.
How has e-commerce impacted international trade?
It has made it easier for consumers to shop globally.
Why is offshoring considered a societal consequence?
It is taking jobs away from the people living in that country.
What triggered the third phase of globalization?
The end of World War 2
What 3 important drivers of globalization have to do with the economy?
Industrialization, modernization, economic development.
What is a potential risk for firms that expand internationally?
Political Instability in foreign markets.
What role does the internet play in globalization?
It facilitates instant communication and information sharing.
How does globalization affect job markets in developing countries?
Can develop job opportunities in that country.
The fourth phase of globalization is characterized by what?
The enormous growth of cross-border trade and investment.
Integration of world financial markets is an example of?
A driver of globalization
How can firms adapt their strategies to succeed in global markets?
By localizing products and marketing strategies.
Name a technology that has improved logistics and supply chain management globally.
GPS and Tracking Systems
What is one way that globalization can lead to social inequality?
By benefiting wealthier nations and corporations more than poorer ones.
Over time, the GATT evolved into the what?
World Trade Organization (WTO)
Name 1 technological driver that has influenced society.
Cell Phone
What is one ethical consideration firms must address when operating globally?
Labor Practices
How can social media influence globalization?
By enabling rapid spreading of information and marketing across borders.
If a company moves their manufacturing operations from the US to Japan, what is this an example of?
Offshoring