L4 Flashcards
(53 cards)
refers to the increasing interconnectedness, integration, and interdependence of markets worldwide.
Market globalization
It is characterized by the flow of goods, services, capital, and information across national borders, facilitated by advancements in technology, transportation, and communication.
Market globalization
is driven by various factors, including multinational corporations, trade liberalization, and digitalization, and it has significant implications for businesses, economies, and societies.
Market globalization
enables businesses to access a global customer base, source inputs from various countries, and establish production facilities in different regions.
Market globalization
Key aspects of globalization and its impact on the world economy:
- Increased International Trade
- Boosting Economic Growth
- Financial Integration
- Technological Advancements
- Transnational Corporations
- Cultural Exchange and Homogenization
- Income Inequality
- Environmental Impact
- Policy Challenges
(what key aspect)
Globalization has facilitated a surge in
international trade. Nations can specialize in producing goods and services in which they have a comparative advantage, leading to greater efficiency and higher productivity. This has resulted in the expansion of global supply chains, where products are manufactured across multiple countries, allowing for cost- effective production and more extensive market access.
Increased International Trade
(what key aspect)
Globalization has contributed to economic growth, particularly in emerging economies. Access to international markets and investments has accelerated the development of these countries, lifting millions out of poverty and improving living standards.
Boosting Economic Growth
(what key aspect)
Financial globalization has interconnected global financial markets, allowing for greater capital mobility and investment diversification. However, it has also increased the susceptibility to financial crises, as shocks in one part of the world can quickly spread globally.
Financial Integration
(what key aspect)
Globalization has been fueled by technological advancements, making it easier to communicate, share information, and conduct business across borders. The rise of the internet and digital communication has facilitated e-commerce, enabling companies to reach consumers worldwide and revolutionizing the way business is conducted.
Technological Advancements
(what key aspect)
Multinational corporations have been major drivers of globalization. These companies can operate in various countries, leveraging economies of scale, accessing new markets, and creating employment opportunities. However, the influence of large corporations has raised concerns about their power and impact on local economies
Transnational Corporations
(what key aspect)
Globalization has led to cultural exchange, with people from different cultures interacting and sharing ideas and values. However, there are concerns about cultural homogenization, as global media and consumer trends sometimes overshadow.
Cultural Exchange and Homogenization
(what key aspect)
While globalization has lifted many out of poverty, it has also exacerbated income inequality, both within and between countries. Developed countries often benefit more from globalization, leaving some developing nations behind and creating income disparities within countries.
Income Inequality
(what key aspect)
Globalization’s demand for increased production and transportation has raised environmental concerns. Issues like carbon emissions, deforestation, and resource depletion need to be addressed to achieve sustainable globalization.
Environmental Impact
(what key aspect)
Globalization has presented challenges for policymakers, as they must strike a balance between promoting economic growth and ensuring social and environmental welfare. Cooperation among nations is necessary to manage global issues such as climate change and financial stability effectively.
Policy Challenges
(this role belongs to?)
Technological advancements, such as the internet, telecommunications, and transportation systems, have revolutionized global communication, production, and distribution. E-commerce platforms have allowed businesses to reach customers worldwide, while advanced logistics have facilitated the efficient movement of goods across continents.
Role of Technology
(this role belongs to?)
Trade agreements, such as those within regional blocs (e.g., European Union, ASEAN) and global institutions (e.g., World Trade Organization), have reduced tariffs, quotas, and other trade barriers, encouraging international trade and market integration.
Role of Trade Liberalization
are at the forefront of market globalization. Their global operations, investment in multiple countries, and establishment of subsidiaries and branches have enabled the flow of goods, services, and capital on a global scale.
Multinational Corporations (MNC)
is a leading global fast-food chain operating in numerous countries. Through franchising and localized menus, they tailor its offerings to suit the tastes and preferences of local consumers. The company’s global presence has not only influenced eating habits but also created employment opportunities and contributed to local economies.
McDonald’s
is a multinational technology company known for its iconic products like the iPhone and MacBook. By leveraging global supply chains and outsourcing manufacturing to countries like China, they have achieved cost efficiency and quick product delivery. Its products have a significant impact on local markets worldwide, driving demand for related services and accessories.
Apple Inc.
is a multinational beverage corporation that operates in over 200 countries. Its global marketing campaigns and product distribution have made them one of the most recognizable brands worldwide. The company’s presence has impacted local markets by influencing consumer preferences and supporting local bottling and distribution networks.
Coca-Cola Company
What are the Various Sectors that receive effect on the Impact of Market Globalization
- Trade
- Finance
- Culture
- Technology
- Environment
(guess what sector and guess if it is negative or positive impact)
Market globalization has led to an increase in global trade volumes and diversification of products. Countries can specialize in producing goods and services where they have a comparative advantage, resulting in efficiency gains and broader consumer choices.
Trade- Positive Impact
(guess what sector and guess if it is negative or positive impact)
Increased competition from global markets can negatively impact some domestic industries, leading to job displacements and trade imbalances. Additionally, trade liberalization may result in the erosion of domestic industries that face competition from lower-cost imports.
Trade- Negative Impact
(guess what sector and guess if it is negative or positive impact)
Financial globalization has increased access to capital and investment opportunities for businesses and governments. It allows for portfolio diversification, lowering the cost of capital, and increasing investment efficiency.
Finance- Positive Impact
