Chapter 1 (Globalization, Industry 4.0) Flashcards
(25 cards)
What is globalization?
Internalization process of individuals, firms, government, and non-governmental institutions, that leads to greater integration and interdependence of nations
What does the globalization of business operation entails?
Internalization of financial capital
Internalization of value chain
Internalization of markets
Internalization of talent and knowledge
What does the internalization of markets in globalization pov means?
Converging tastes
Consumption of same products
Homogenization of culture
Global market opportunities for standardized global products
Difference in tech, culture, Econ and legal
What are some pros of globalization of markets?
Firms can sell their product all over the world
Product standardization
Economies of scale
What are some challenges of globalization of markets?
Not all markets are the same
Cultural differences
Different infrastructure
Political risk
Government regulations
What does the internalization of financial market from a globalization pov means?
Cross border sourcing of capital
Lower cost of capital for borrowers in. international capital markets
Higher returns for cross border investment
Risk diversification
What does the internalization of talent and knowledge means from a globalization pov?
New technology
Cross country cooperation
Global sourcing of skilled labour
Info tech
Global virtual teams
What is a global value chain?
Series of product or services that are value adding. From research and development to its sales support
What is porter’s value chain?
Set of activity that an organization Carrie’s out to create value for its customer. Primary and support activities.
What are porter’s value chain primary activities?
Inbound logistics, operations, outbound logistics, marketing and sales, service
What are porter’s value chain supporting activities?
HR management, tech development, procurement, infrastructure
How does porter’s value chain define value?
Value is defined when the cost outweighs the benefits the product or service
What is outsourcing?
When companies cannot produce/manufacture so they get their product else where (global MNEs)
Buyer driven
What is offshoring?
When a company brings their manufacturing else where, usually because of cost of labour, product….
What are the drivers of global value chain and what is their definition?
Buyer driven, outsource their products, the buyers are whet drives them to sell.
Producer driven, offshore, the low cost of their production is what drives them to open factories else where.
What are the different structure of global value chain
Market, modular, relational, captive, hierarchy
What are the types and characteristics of international enterprises?
Global MNE, high global integration and low host country adaptation
International, low global integration and low host country adaptation
Transnational enterprise, high global integration and high host country adaptation
Multi domestic enterprise, low global integration and high host country adaptation
What are some measure of global integration?
Tech, cultural, trade, investment, political
What are the factors which influence globalization?
Trade liberalization
End of cold world war
Growth of MNE
Rapid industrialization of emerging markets
Logistics and transport technologies
Industry 4.0 and digital transformation
What is the internet of things? (IoT)
Robots/drones
Sensors
Cloud computing
Mobile technologies
Data analytics
AI
Argumenter reality
What are some digital platform technologies?
Blockchains
Additive manufacturing
E commerce
Social media
What are some global disruptions caused by the arrival of iot and digital platform techs?
Global markets/value chain/institutional/economic disruption
What are some economic effects of globalization? (+)
Gain from trade expansion
Employment growth
Reduced poverty
Greater variety of products
Efficient use of resources
Greater innovation
What are some challenges globalization brings? (-)
Cultural diversity
Poor working condition
Child labour
Environmental sustainability
Loss of national sovereignty
Crowding out of local producers
Income inequality
Job losses
