Term
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Definition
| Performance of trade and investment activities by firms across national boarders. |
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Term
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Definition
| emergence of global markets for standardized products and services and the growth of world-scale companies that serve those markets |
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Term
| what 2 things permit firms to more redily engage in both marketing and procurement activities on a global scale? |
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Definition
| Market globalization and technological advances |
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Term
| Why is globalization not a new phenomenon? |
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Definition
| It has just accelerated and gained complex character |
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Term
| What is the first phase of Globalization? |
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Definition
| Rise of manufacturing, cross-border trade of commodities, largely by trading companies. Introduction of railroads and ocean transport. |
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Term
| What is the second phase of globalization? |
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Definition
| Emergence of dominance of early multinational enterprises. Rise of electricity and steel production |
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Term
| What is the third phase of globalization? |
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Definition
| Formation of General Agreement on Tariff and Trade (GATT); conclusion of WWII, and Marshall Plan to reconstruct Europe. |
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Term
| Fourth phase of globalization? |
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Definition
| Advances in information, communication, manufacturing, and consultation tech. |
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Term
| What is the World Trade Organization? |
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Definition
| A multilateral governing body empowered to regulate international trade and investment. |
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Term
| Why do multinational firms seek? |
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Definition
| Cost advantages by locating factories in developing countries with low labor costs. |
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Term
| The strategies of product standardization, global branding, and maximizing sales to customers worldwide owe much of their success to the __________________? |
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Definition
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Term
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Definition
| The sequence of value-adding activities performed by the firm in the process of developing, producing, marketing, and servicing a product. |
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Term
| What are the 5 major dimensions of globalization of markets? |
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Definition
1. Integration and interdependence of national economies.
2. Rise of regional economic integration blocs.
3. Growth of global investment and financial flows.
4. Convergence of consumer lifestyles and preferences.
5. Globalization of production. |
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Term
| How does the government contribute to international trade? |
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Definition
| Gradually lower barriers to international trade and investment, and increasingly harmonize their monetary and fiscal policies within regional economic integration blocs. |
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Term
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Definition
| North American Free Trade Agreement |
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Term
| Bond Markets has done what? |
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Definition
| foreign bonds represent a major source of debt financing for governments and firms. |
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Term
| T or F: In conducting international transactions, firms and governments buy and sell large volumes of national currencies? |
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Definition
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Term
| The convergences of preferences in industrial markets are becoming what |
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Definition
| Standardized such in raw materials, parts, and components are very similar in design and structure. |
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Term
| Intense global competition is forcing firms to.... |
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Definition
| reduce the cost of production and marketing. Companies strive to drive down prices through economies of scale and by standardizing what they sell. |
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Term
| The 5 drivers of market globalization are?? |
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Definition
1. Worldwide reduction of barriers to trade and investment.
2. Market liberalization and adoption of free markets
3. Industrialization, economic development, and modernization.
4. Integration of world financial markets
5. Advances in technology |
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Term
| National governments reduce trade and investment barriers decreased or increased global economic integration? |
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Definition
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Term
| What does the Gross National Income (GNI) per head measure? |
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Definition
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Term
| why have SMEs internationalized ? |
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Definition
| Because of technological advances making the cost of international operations affordable. |
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Term
| What is the most important activity underlying technological advances? |
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Definition
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Term
| Innovation is a result from ? |
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Definition
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Term
| Technology has allowed for a greater?? |
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Definition
| Accuracy and significantly lowered production costs. |
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Term
| Technological advances has impacted 4 areas? |
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Definition
| Information technology, communications, manufacturing, and transportation. |
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Term
| What is Information technology? |
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Definition
| The science and process of creating and using information resources. |
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Term
| Collaboration software does what? |
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Definition
| Connects global product development teams scattered around the world, letting them to work together. |
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Term
| The widespread availability of internet does what to a company's internationalization |
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Definition
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Term
| What does communications and information technology do together? |
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Definition
| connect all of the knowledge pools in the world together |
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Term
| Computer-aided design (CAS) of products, robotics, and production lines do what to manufacturing? |
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Definition
| reduce the costs of production |
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Term
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Definition
| allow firms to more efficiently adapt products to individual foreign markets, profitably target small national markets, and compete more effectively with foreign competitors who already have cost advantages. |
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Term
| The cost of transportation as a proportion of the value of products shipped internationally has what? |
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Definition
| declined, lower freight costs have rapid growth in cross-border trade |
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Term
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Definition
| the ability of a nation to govern its own affairs |
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Term
| MNE activities can threaten national sovereignty by? |
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Definition
| effecting economies, social structures, and political systems. |
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Term
| Integration of the global economy and increased global competition |
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Definition
| make companies less powerful within their national markets |
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Term
| what incentives does globalization create for governments |
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Definition
| to pursue sound economic policies and for managers to manage their firms more effectively. |
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Term
| Globalization creates and destroys what |
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Definition
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Term
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Definition
| relocation of manufacturing and other value-chain activities to cost-effective location abroad |
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