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