International Business Exam 1

Argument FOR Globalization for Workers

Development of better skills

Argument AGAINST Globalization for the Environment

Lack of adequate regulations causes abuse

Argument AGAINST Globalization for Workers

Loss of jobs due to competition

Argument FOR Globalization for Producers

More markets to sell in

Argument FOR Globalization for Consumers

More products to choose from

World Trade Organization

Primarily responsible for policing the world trading system

The commercial jet aircraft market

can be best described as a global market

G20

the finance ministers and the central bank governors of the 19 largest economies in the world, plus EU and European Central Bank reps coordinate policy on global financial crises

Argument AGAINST Globalization for Producers

Can go bankrupt due to competition

Argument AGAINST Globalization for Consumers

Don't know how products are made

Argument FOR Globalization for the Environment

Tougher laws lead to lower pollution rates

Declining trade barriers lead to

better ability to export goods

Declining investment barriers lead to

better ability to optimize location economies

Boeing's 787 aircraft is produced by 50 suppliers spread around the world, a huge increase in global outsourcing as compared to the past. Boeing's strategy, like that of other multinational companies, suggests that

declining barriers to trade and investment are facilitating global production strategies

Advances in communication technology lead to

growth in e-commerce

International Monetary Fund (IMF)

institution established in 1944 at Bretton Woods by 44 nations that maintains orders in international monetary exchange

World Bank

institution established in 1944 at Bretton Woods by 44 nations to promote economic development

Factors of Production

labor, energy, land, and capital

Advances in transportation technology leads to

lowered distance between countries

United Nations

most of it's work is devoted to establishing higher standards of living, full employment, and conditions of economic and social progress and development

The growth of trade as a percentage of global GDP

reflects the globalization of markets

Boeing produced just 5 percent of its original 737s and 747s outside the United States but produces 65 percent of its newer 787s in foreign locations. Boeing's production strategy

reflects the globalization of production

Globalization of Markets

the merging of historically distinct and separate national markets into one huge global marketplace

Globalization

the shift toward a more integrated and interdependent world economy

Globalization of Production

the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production