Chapter 5 Flashcards
(32 cards)
1
Q
Globalization
A
The movement of goods, services, technology, investments, ideas, and people through the world
2
Q
7 positive effects of globalization
A
- Outsourcing
- Lower prices
- Improved human rights
- Increased productivity
- Innovation
- Better jobs
- Increased capital flow
3
Q
Negative effects of globalization
A
- Lost Canadian jobs
- Fear of job loss
- Loss of Canadian productivity
- Exploitation of cheap labour
- Increased pollution
- Unhealthy products
- Spread of disease
- Increase in the income gap
- Influence of multinational corporations in government
4
Q
3 globalization strategies
A
- Global strategy
- Multidomestic strategy
- Transnational strategy
5
Q
Global strategy
A
- world = one big market
( all people want the same product and will respond to marketing similarly) - products/ marketing = uniform
- takes advantage of economic sale
( savings gained by producing larger quantities) - does not respond to individual cultures
6
Q
Multidoemstic
A
- customizes products, services, and marketing for local culture
- local management is most capable of determining what if best for local subsidiary
- effective when cultural differences are prominent
- less political and exchange rate risk
7
Q
Transnational strategy
A
- best elements of global and multi domestic strategies
- respects needs of local markets
- maintains efficiencies of global strategy
- manufacturing takes place at least expensive source
- marketing and human resources take place at the local level
8
Q
Trade agreement
A
An enforceable treaty between two or more countries that involves the movement of goods and services, elimination of trade barriers, establishment of terms of trade, and encouragement of foreign investment
9
Q
Multilateral agreements
A
3 or more countries
10
Q
Bilateral agreements
A
2 countries
11
Q
NAFTA
A
- January 1994
- Canada, US, Mexico
- largest free trade area
- sets rules surrounding movement of goods, services, and investments across North America
- eliminates tariffs and other trade barriers and promotes fair competition
12
Q
Advantages of NAFTA
A
- helped create higher paying jobs in education, engineering and banking sectors in Canada
- Allows free flow of goods and services across North America, providing better access to raw materials, talent, capital and technology
- Trade has tripled between the 3 countries
13
Q
Disadvantage of NAFTA
A
- Manufacturing jobs have been lost to Mexico, where labour costs are lower
- Without tariffs many Mexican farmer could not compete and lost their livelihoods
- Canadian companies sold to foreign investors
- Maquiladoras = - us factories - takes advantage of Mexicans
14
Q
Tax treaties
A
Created to prevent double taxation and tax evasion for people who would play taxes in Canada and another country. The treaty determines how much tax each country can collect
15
Q
European Union
A
- trade agreement
- signed in 1993
- now - 27 countries Europe
- population = almost half a billion
- own flag, anthem, currency, and common financial, security and foreign policies
16
Q
The euro
A
The European currency adopted by the European Union and used in most eu countries
17
Q
Trade organizations
A
Hell with the free flow of goods and services. They may be global in scope or national organizations created by individual governments to help domestic companies expand into international markets
18
Q
World trade organization
A
WTO An international organization - established in 1995 - now over 150 members - promotes trade liberalization throughout the world
19
Q
Purpose of WTO
A
- to acts as a forum for negotiations
- to provide a set of rules that have been negotiated and signed by the government of member countries
- to offer a forum a dispute settlement
20
Q
Asia-Pacific economic co-operation
A
APEC
- trade organization
- created in 1989
- 21 counties surrounding Pacific Ocean
- co-operate on regional trade
21
Q
Goals of APEC
A
- foster and open free trade among members
- increase prosperity
- economic growth
- develop the Asia- Pacific community
22
Q
The group of eight
A
G8
- trade organization
- major economies of the world
- meet to discuss macroeconomic issues (growth, trade liberalization and helping developing countries
23
Q
G8 members
A
France United States Canada Great Britain Italy Germany Japan Russia
24
Q
G20
A
- trade organization
- established during the economic crisis of the 1990s
- provides a discussion forum for the major economies of the world beyond the G8
25
Focus of the G20
1. Economic and employment growth
2. Elimination of trade barriers
3. Reforming financial institutions and regulations
4. Restructuring global and financial organizations
26
Canadas place in the G8 and G20
- Canadas GDP and populations = low compared to other G8 and G20 countries
- talk of replacing Canada in the G8 and placing it as a second tier country in the G20
- - would bee detrimental to Canada as its needs, concerns, and interests would not be given the same consideration
27
Organization for economic co-operation and development (OECD)
- trade organization
- 30 members
- established 1961
- promotes the advancement of democracy and market economies
- members work together to eliminate bribery, money laundering, and fraud, and to create a code of conduct for multinational companies
28
The world bank
- 186 member countries
- provide monetary and technical support for developing countries
- (provides loans and grants to assist with education, health, infrastructure, farming, environmental issues, resource management, and other economic concerns)
29
International Monetary Fund
IMF
| - purpose = to promote financial stability, prevent and solve economic crisis, encourage growth, and assuage poverty
30
How does IMF fulfill its purpose
1. Encourage countries to adopt responsible economic policies
2. Lending money to emerging and developing countries
3. Providing technical training in areas such as banking regulations and exchange rate policies
31
Four main purposes of the un
1. To keep peace through the world
2. To develop friendly relationships between nations
3. To work together to help poor people live better live (to conquer hunger, disease, and illiteracy, and to encourage respect for each other's rights and freedoms
4. To be a centre for helping nations to achieve these goals
32
Uns 3 main functions
1. Responsible for organizations that influence international business, including, the international Labour organization, (ILO), the International Monetary Fund, and the world bank
2. Devotes resources to improving the standard of living, the unemployment rate, and economic conditions
throughout the world
3. Economic and financial committee deals with issues such as international trade, globalization, and poverty elimination
