1-5 Flashcards
(42 cards)
What does globalization refer to?
The increasing interconnectedness of national economies, markets, and production systems.
What is the Globalization of Markets?
Distinct national markets merge into a unified global marketplace.
What is the Globalization of Production?
Sourcing goods and services from various countries to capitalize on cost and quality advantages.
What are the key drivers of globalization?
- Falling Trade and Investment Barriers
- Technological Advancements
- Economic Growth in Emerging Markets
What role does the World Trade Organization (WTO) play?
Regulates global trade and ensures adherence to rules.
What is the purpose of the International Monetary Fund (IMF)?
Provides financial assistance to struggling economies.
What does the Group of Twenty (G20) represent?
The world’s largest economies, influencing global financial stability.
How has the U.S. share of global economic output changed from 1960 to 2020?
Declined from 38.3% in 1960 to 24.7% in 2020.
What are some criticisms of globalization?
- Job losses in high-wage countries
- Worsens income inequality
- Encourages exploitation
- Reduces national sovereignty
- Widens the wealth gap between nations
What arguments do supporters of globalization present?
- Trade specialization boosts economic efficiency
- Economic growth can improve wages and living standards
- Regulations improve alongside economic progress
- Supranational organizations support national interests
What are the three main political systems categorized by?
- Collectivism vs. Individualism
- Democracy vs. Totalitarianism
Define Collectivism.
Prioritizes societal goals over individual interests.
Define Individualism.
Emphasizes personal freedom and economic self-interest.
What is a Market Economy?
Privately owned businesses operate based on supply and demand.
What defines a Command Economy?
The government controls production, pricing, and distribution.
What is the difference between Common Law and Civil Law systems?
- Common Law: Based on tradition and judicial interpretation
- Civil Law: Based on codified statutes and laws
What does the Foreign Corrupt Practices Act (FCPA) prohibit?
Bribing foreign officials.
What is the Human Development Index (HDI)?
Measures life expectancy, education, and income to assess well-being.
What are Hofstede’s Cultural Dimensions?
- Power Distance
- Individualism vs. Collectivism
- Uncertainty Avoidance
- Masculinity vs. Femininity
- Long-term vs. Short-term Orientation
- Indulgence vs. Restraint
Fill in the blank: Economic development determines how attractive a country is for _______.
[business]
What are some common ethical issues in international business?
- Employment Practices
- Human Rights
- Environmental Pollution
- Corruption
What is the significance of education in economic development?
It shapes work skills and values, leading to higher economic growth and innovation.
True or False: Cultural values do not influence economic behavior.
False
What is the primary focus of ethical strategy in business?
Actions that align with business ethics.
