Introduction to International Buisness Flashcards
(37 cards)
Describe the impact of globalization on workers’ positions.
Globalization, along with technology and automation, weakens the position of workers.
Explain the relationship between globalization and business operations.
Globalization compels companies to adapt and innovate their operations to keep up with the changing environment.
Describe the process of globalization.
Globalization is the process whereby national or regional economies and cultures become integrated through various means such as new global communication technologies, foreign direct investment, international trade, migration, new forms of transportation, and the flow of money.
How do new global communication technologies contribute to globalization?
New global communication technologies facilitate the exchange of information and ideas across borders, enabling businesses and individuals to connect and collaborate internationally.
Define foreign direct investment in the context of globalization.
Foreign direct investment refers to investments made by a company or individual in one country in business interests in another country, which is a key component of globalization as it links economies.
Explain the role of international trade in globalization.
International trade involves the exchange of goods and services between countries, which enhances economic interdependence and contributes to the globalization of markets.
How does migration influence globalization?
Migration allows for the movement of people across borders, leading to cultural exchange, labor market integration, and the spread of ideas, all of which are essential aspects of globalization.
What are new forms of transportation’s impact on globalization?
New forms of transportation improve the efficiency and speed of moving goods and people across the globe, thereby facilitating international trade and cultural exchange.
Describe the flow of money in the context of globalization.
The flow of money refers to the movement of capital across borders for investment, trade, and other economic activities, which is crucial for the interconnectedness of global economies.
How did economic ties between countries change after World War II?
Economic ties between countries strengthened through negotiated tax treaties, the abolition of tariffs, and the development of global corporations.
Define the role of technology in globalization.
New technology allows international business to occur in real time, transforming the globe into one market.
What impact has globalization had on the interdependence of nations?
Globalization has increased the interdependence of all nations, blurring political boundaries.
Explain the significance of the United Nations in the context of globalization.
The United Nations played a crucial role in the establishment of globalization by fostering trade relations between countries after World War II.
Identify the changes in trade relations that occurred post-World War II.
Post-World War II, trade relations saw the negotiation of tax treaties, the abolition of tariffs, and the rise of global corporations.
How has globalization transformed the concept of markets?
Globalization has transformed the concept of markets by creating a single global market through real-time international business.
Define a commodity.
A commodity is a good that is fully fungible, meaning the market does not distinguish between identical grades of the product regardless of who produced it.
Describe the significance of gold as a commodity.
Gold is one of the best known commodities and has been valuable for thousands of years, making it a key asset in trading.
Explain the concept of fungibility in relation to commodities.
Fungibility means that a commodity is interchangeable with other identical goods, and the market does not differentiate between them based on the producer.
Describe the significance of commodity prices in the market.
Commodity prices are highly sensitive to world events and can indicate market trouble.
Define commodities in the context of goods.
Commodities are the raw materials that many other goods are made with.
How does the origin of a commodity, like wheat, affect its value to consumers?
The origin of a commodity does not typically matter to consumers; they often cannot determine where it was grown.
Do commodities have a uniform quality regardless of their source?
Yes, commodities like wheat are generally considered uniform in quality, regardless of where they are grown.
Describe the relationship between high commodity prices and supply and demand.
High commodity prices often indicate that there is too much demand for not enough supply, meaning more people want to buy a commodity than what is available.
Explain why headlines about high commodity prices are important.
High commodity prices can signal various economic conditions and potential market troubles.
