BEC 5 M6: Impact of Globalization Flashcards

1
Q

globalization is often measured using

A

world trade growth as a percentage of GDP

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2
Q

globalization is frequently associated with:

A
  1. comparative advantage

2. increased specialization

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3
Q

globalization is made possible by

A
  1. reduced transportation costs
  2. technological advancements including improved communications
  3. deregulation of international financial markets
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4
Q

concept of a global economic balance of power

A

distribution of power and influence that ensures that no one nation/group of nations will dominate/interfere with the activities of others

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5
Q

Sourcing requirements

A

content or value added limits on the % of labor/materials used in imported products

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6
Q

Country risk

A

emcompases political risk, ecnomic risk, transfer risk, sovereign risk and exchange rate risk associated in engaging in business with foreign countries

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7
Q

interest rate risk

A

relates to the fluctuation in the value of an investment as a result of changes in interest rates

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8
Q

Commodity price risk

A

market values and future cash inflows that are affected by fluctuations in commodity prices

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9
Q

Principal risk

A

risk of losing an investment (money)

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10
Q

unipolar distribution of power

A

power concentrated in a single nation

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11
Q

multilateral distribution of power

A

power that is not only distributed, but shared cooperatively among nations

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12
Q

Unilateral

A

single nation acting on its own. not relevant to distribution of power topic

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13
Q

multipolar distribution of power

A

power distributed amongst multiple nations

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14
Q

BRIC nations that are associated with shift in economic balance of power

A

Brazil
Russia
India
China

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15
Q

global sourcing

A

use of worldwide supply chain

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16
Q

systematic interdependence

A

global warming and nuclear proliferation issues

17
Q

functional interdependence

A

greenhouse gas emissions issues

18
Q

dumping

A

when price charged to foreign customers on exported goods is less than either the price charged in the domestic market or less than the production cost

19
Q

foreign trade zone

A

a physical location in which tariffs are waived on imported products until they leave the zone