International Business Chapter 1. Globalitzation

Final exam of international business ITAM

15 cards·by AntonellaAc

international busineitambusiness

Meaning of Globalization

Shift toward a more integrated and interdependent world economy. Several facets including Glob of markets and glob of production

Globlaization of market

Merging of national markets into a global one. Convergence

Globalization of production

Sourcing of goods and services from around the globe. Take advantage of national differences in the cost and quality of factors of productio

Examples of factors of production

Labor, energy, land and capital

Robinsons first 2 defining features of global capitalism

1)Accelerated expasnsion of int. trade. 2)Internationalization and growth of financial markets and services

Robinsons last 2 defining features of global capitalism

3)Segmentation and internationalization of production processes 4)R Reintegrations of components of value chain

Examples of globalization of institutions

WTO (policing world trade), IMF (lending to countries with certain conditions), WB (fund infrastructure projects), UN (peace and security)

Why are institutions needed?

To help manage, regulate, and police the global market place and to promote treaties to govern global business system

What are the 3 drivers of globalization?

1) declining trade and investment barriers 2)technological change 3) convergence

Driver of globalization that includes International trade and Foreign direct investment (FDI)

Declining trade and investment barriers

3 main examples of technological change

1)microprocessors and telecomnunications 2)internet 3) transportation technology

Implications of techonological change for the globalization of production

Costs have declined: Dispersal of production, processing and communication. It means, facilitating the fglob of production

Implications of technological change dor the globalization of markets

Electronic global marketplaces, mass movement of people between countries reducing cultural distance. Worldwide culture

What is a Multinational enterprise (MNE)?

Any business that has productive activities in two or more countries.

Main arguments from antiglobalization protests

Job losses because of foreign competitors, enviromental degradation, cultural imperialism of global media and multinational enterprises