concept summary

Question 1

what is globalization 4.0?

Answer 1

new phase of globalization that is differentiated by new technological advances, geopolitcal changes, and bigger focus on sustainability. Driven by Ai, lOT, blockchain.

Question 2

example of globalization 4.0?

Answer 2

TikTok

Question 3

slowbalization

Answer 3

global trade & investments are growing slowly ever since the 2008 recession.

Question 4

slowbalization causes

Answer 4

companies staying near home countries to avoid supply chain disruptions and trade barriers.

Question 5

impact of slowbalization

Answer 5

increased competition, new opportunities and re-education of globalization

Question 6

theory of international trade

Answer 6

no country can produce everything it needs so trade is necessary

Question 7

ricardo’s comparative advantage (classical theory)

Answer 7

countries should specialize in making products that can be produced more quickly/lowest cost

Question 8

heckscher theory (factor endowment theory)

Answer 8

countries export abundant resources and trade for the ones they lack, trade based on natural advantages

Question 9

new trade theory

Answer 9

countries with similar resources should still trade bc of economies of scale & specialization

Question 10

gravity model of trade

Answer 10

predicts how much 2 countries will trade with each other, key idea being countries closer together or with stronger economies are more likely to trade wt each other

Question 11

foreign direct investment theory

Answer 11

a company directly invests in operations in another country, like building a factory or buying a foreign company

Question 12

OLI paradigm for FDI

Answer 12

ownership advantages: company has smth valuable,
location advantages: cheap labor or nat resources etc,
internalization advantage: better to control directly

Question 13

Internalization theory

Answer 13

doing business internally reduces risks and costs

Question 14

horizontal FDI

Answer 14

company performs same activity as the home country ie mcdonalds opens in france

Question 15

vertical FDI

Answer 15

company moves a stage of production to a diff country ie toyota buying steel supplier in brazil or apple opening retail stores in italy

Question 16

international business strategy

Answer 16

multinational companies compete in diff countries

Question 17

integration responsiveness framework

Answer 17

helps decide how global/local their strategy should be

Question 18

global strategy

Answer 18

high global integration, low local responsiveness (ie apple sells iphones everywhere)

Question 19

multidomestic strategy

Answer 19

low global int, high local responsiveness (ie nestle selling diff products in germany vs india)

Question 20

transnational strategy

Answer 20

high integration and high local responsiveness (ie mcdonalds keeping staple menu items + adding cultural foods)

Question 21

international strategy

Answer 21

low global integration, low local responsiveness (ie mostly exporting like small fashion brand selling overseas)

Question 22

multinational enterprises configuration for value creation

Answer 22

must design their global setup to add value and stay competitive

Question 23

competitive advantage in international strategy

Answer 23

companies gain leverage thru global strategy, multidomestic, or both

Question 24

cross border mergers & acquisitions

Answer 24

company buys or merges with a company in another country

Question 25

motivations of cross border m&a's?

Answer 25

market access, resource access, efficiency, strategic synergy

Question 26

post merger problems

Answer 26

cultural integration, brand confusion, talent retention, system integration

Question 27

risks of cross border m&a's?

Answer 27

cultural differences, political/economical risks, regulatory hurdles, overpayment risk

Question 28

valuation techniques

Answer 28

discounted cash flow, asset based valuation, precent transactions, comparable companies

Question 29

best practices for post merger integration

Answer 29

start planning early involve both sides clear communication focus on people set goals

Question 30

what is emerging market multinationals

Answer 30

companies that start in emerging countries and then expand globally

Question 31

springboard strategy

Answer 31

By leveraging existing resources companies go abroad to catch up quickly & grow

Question 32

institutional voids navigation

Answer 32

EMMS are used to operating in weak local systems such as poor infrastructure, weak legal systems etc

Question 33

reverse innovation

Answer 33

EMMS create low-cost accessible solutions and then sell to more developed countries

Question 34

latecomer advantage

Answer 34

entering a market later can be beneficial

Question 35

global value chain

Answer 35

having different parts of the production happen in diff countries

Question 36

fragmentation of production

Answer 36

splitting up parts of production into diff countries

Question 37

GVC governance

Answer 37

power & decisions for GVC is mostly controlled by leading firms

Question 38

GVC policy frameworks

Answer 38

governments support global value chains

Question 39

OECD-WTO Tiva

Answer 39

shows where value is added in each country

Question 40

why is GVC important

Answer 40

efficiency job creation innovation more connection

Question 41

World Trade Organization helped with:

Answer 41

trade facilitation agreement information technologies agreement TRIPS ammendment Nairobi Decision

Question 42

trade facilitation agreement

Answer 42

mad trade more inclusive

Question 43

nairobi agreement

Answer 43

stopped export subsidies, allowing farmers from developing countries to be competitive

Question 44

trade interdependencies

Answer 44

+ promotes collaboration and technological exchanges - reliability on foreign goods, vulnarability to political disruptions

Question 45

trade openness

Answer 45

+ cheaper good for consumers - local industries can suffer, promoting protectionism

Question 46

globalization

Answer 46

interconnectedness through trade, technology, cultural exchange

Question 47

benefits/downsides

Answer 47

+decreased poverty +more job opps +businesses/technology grows -exploits workers -benefits rich countries more -causes disruptions

Question 48

GATT; general agreement on trade & tariffs

Answer 48

Formed before WTO, promoted trade by reducing tarifss

Question 49

conscious capitalism

Answer 49

idea that businesses should focus on deeper meanings other than profit

Question 50

who are spain's exporters?

Answer 50

63% are fam businesses 61% export to america, 20% to asia

Question 51

stages of international trade

Answer 51

passive exports active exports commercial subsidiaries production subsidiaries

Question 52

choosing the right market

Answer 52

cabinet research field research