p.1
Definition and Elements of Globalization
What broader context is discussed in relation to globalization in this course?
Global Business Environment and International Strategy.
p.11
Drivers of Globalization
What does a Global focus in export strategies entail?
Targeting international markets from the outset rather than focusing on domestic first.
p.15
International Trade Patterns and Theories
What are examples of merchandise?
Manufactured goods, mining output, and agricultural products.
p.16
Mercantilism and Trade Surplus
What does a trade surplus indicate?
A positive trade balance where exports exceed imports.
p.11
Drivers of Globalization
What is Incremental Internationalisation?
A gradual approach to expanding into international markets.
p.10
International Trade Patterns and Theories
What is an export?
A good or service sold by a country to another country.
p.16
Mercantilism and Trade Surplus
What does a trade deficit indicate?
A negative trade balance where imports exceed exports.
p.12
Drivers of Globalization
Why do countries engage in imports?
To obtain goods that are not available locally.
p.21
Drivers of Globalization
What are political motives in trade intervention?
Reasons related to political goals or relationships, rather than economic ones.
p.11
Drivers of Globalization
What characterizes Fast / Instant Internationalisation?
Rapidly entering international markets with little delay.
p.20
International Trade Patterns and Theories
What is vertical specialization in the context of trade?
A trend where production processes are divided across different countries.
p.5
Regionalization vs. Localization
What characterizes a formal pact in regionalisation?
An agreement based on mutual interests among participating countries.
p.13
Costs and Challenges of Globalization
What is a weakness of the Heckscher-Ohlin Theory?
It considers all value addition factors as equal.
p.9
Benefits of Globalization
What are the benefits of globalization at the organizational level?
Increased market access, enhanced competitiveness, and opportunities for innovation.
p.21
Drivers of Globalization
Why might a government intervene in trade?
To save jobs within the country.
p.7
Costs and Challenges of Globalization
What is a potential threat posed by globalization?
Threats to national control or even sovereignty.
p.14
Mercantilism and Trade Surplus
What should countries do according to mercantilist principles?
Export more than they import.
p.19
Comparative and Absolute Advantage Theories
What can negate the benefits of comparative advantage in trade?
Transport costs may outweigh any comparative advantage.
p.19
Comparative and Absolute Advantage Theories
What type of advantage does the comparative advantage theory measure?
Static advantage over dynamic advantage.
p.5
Regionalization vs. Localization
What are common reasons for localisation?
Lack of capacity to expand and lack of aspiration or vision.
p.8
Costs and Challenges of Globalization
What are some geopolitical challenges in the contemporary world?
Geopolitical conflicts and changing political climate.
p.6
Historical Examples of Regionalization
What did the African Union replace?
The Organisation of African Unity.
p.18
Comparative and Absolute Advantage Theories
What is opportunity cost in the context of Comparative Advantage?
The cost of forgoing the next best alternative when making a decision.
p.10
International Trade Patterns and Theories
What is an import?
A good or service purchased by a country from another country.
p.2
Definition and Elements of Globalization
What is globalization?
The creation of linkages or interconnections between nations by reducing or removing barriers, stimulating exchange in goods, services, money, and people.
p.7
Costs and Challenges of Globalization
What is a consequence of hyper-growth in the context of globalization?
It can lead to the depletion of non-renewable natural resources.
p.7
Costs and Challenges of Globalization
Which countries are mentioned as examples in the context of globalization's costs?
Ethiopia, Kenya, Sri Lanka, Indonesia, China, UK, Bangladesh.
p.4
Barriers to Globalization
What role do technical standards play in globalization?
They can create barriers if not aligned internationally.
p.4
Barriers to Globalization
What impact does a wrong or misguided perception have on globalization?
It can lead to poor business decisions and missed opportunities.
p.3
Drivers of Globalization
How does media influence globalization?
Through its domination and influence on consumer behavior.
p.18
Comparative and Absolute Advantage Theories
What does Comparative Advantage Theory focus on?
Relative costs of production.
p.16
Mercantilism and Trade Surplus
What is the primary focus of mercantilism?
To maximize exports and minimize imports.
p.10
International Trade Patterns and Theories
What role do Country A and Country B play in international trade?
They engage in exporting and importing goods and services with each other.
p.14
Mercantilism and Trade Surplus
What is the goal of mercantilism regarding trade balance?
Maintain a trade surplus and avoid a trade deficit.
p.8
Costs and Challenges of Globalization
What is a significant challenge posed by climate change?
Creating a balance of good lives with sustainable limits.
p.3
Drivers of Globalization
What technical advancement is a driver of globalization?
The application of technology, particularly digital commerce.
p.21
Drivers of Globalization
What is one reason for trade intervention?
To protect national interests, such as defense.
p.17
Comparative and Absolute Advantage Theories
What is the main premise of Absolute Advantage Theory?
All countries can gain by engaging in free trade, making it a positive sum game.
p.17
Comparative and Absolute Advantage Theories
What is the effect of specialization on world output?
World output increases and surpluses can be traded.
p.15
International Trade Patterns and Theories
What are agricultural products?
Goods produced from farming, including crops and livestock.
p.5
Regionalization vs. Localization
What is a common market?
A group of countries that have agreed to reduce or eliminate trade barriers among themselves.
p.13
Comparative and Absolute Advantage Theories
What does Comparative Advantage refer to?
The ability to produce a good at a lower opportunity cost than another producer.
p.1
Definition and Elements of Globalization
What is the focus of Week 01 in the MOD007191 course?
Introduction to globalization.
p.10
International Trade Patterns and Theories
What is the primary function of businesses in the context of export and import?
To facilitate trade between countries by selling goods and services across borders.
p.21
Barriers to Globalization
What does 'dumping' refer to in trade?
Selling goods in a foreign market at a price lower than their domestic market value.
p.14
Mercantilism and Trade Surplus
According to mercantilism, what does a nation's wealth depend on?
Accumulation of precious metals, specifically gold and silver.
p.2
Definition and Elements of Globalization
What is meant by 'interdependent relationships' in the context of globalization?
Relationships among people from different parts of a world divided into nations.
p.2
Definition and Elements of Globalization
How does globalization influence world economies?
By eliminating barriers to the international movement of goods, services, capital, technology, and people.
p.8
Costs and Challenges of Globalization
What is the refugee crisis a consequence of?
A more interconnected world.
p.3
Drivers of Globalization
What is an economic driver of globalization?
Growth of international trade and increase in capital, goods, and information flows.
p.3
Drivers of Globalization
What international/legal factors contribute to globalization?
Expanded cross-national cooperation, trade regulations, tariffs, and subsidies.
p.18
Comparative and Absolute Advantage Theories
What indicates that a country has a comparative advantage?
If its opportunity cost in producing a certain good is lower.
p.21
Barriers to Globalization
What is protectionism?
A policy to protect national industries from foreign competition.
p.15
International Trade Patterns and Theories
What does mining output refer to?
Products extracted from the earth, such as minerals and metals.
p.7
Costs and Challenges of Globalization
What type of inequality can arise from globalization?
Possible income inequality at both organizational and individual levels.
p.13
International Trade Patterns and Theories
What does the Heckscher-Ohlin Theory suggest about trade?
Countries should export goods that use their abundant resources and import goods that require resources in which they are scarce.
p.4
Barriers to Globalization
Why is the protection of intellectual property rights a barrier to globalization?
It can limit access to markets and technologies.
p.8
Costs and Challenges of Globalization
What does global competition represent in the contemporary world?
A challenge to economic stability and growth.
p.9
Benefits of Globalization
How does globalization benefit nations?
By promoting economic growth, attracting foreign investment, and improving trade relations.
p.12
Drivers of Globalization
What does local unavailability refer to in the context of imports?
The lack of certain goods or resources within a country.
p.19
Comparative and Absolute Advantage Theories
What is a limitation of the comparative advantage theory regarding intra-industry trade?
It does not explain intra-industry trade.
p.20
Drivers of Globalization
How have communication costs affected trade in the last 30 years?
Reduction of communication costs has facilitated trade.
p.8
Costs and Challenges of Globalization
What are some political trends affecting the contemporary world?
Political populism, conservatism, and isolationism.
p.13
International Trade Patterns and Theories
What does the Leontief Paradox highlight?
It considers the relative importance of value addition factors in trade.
p.6
Historical Examples of Regionalization
What organizations were founded in the 1950s related to regionalization?
The ECSC (European Coal and Steel Community) and EEC (European Economic Community).
p.9
Benefits of Globalization
What are the social or individual benefits of globalization?
Access to diverse cultures, improved quality of life, and enhanced educational opportunities.
p.12
Drivers of Globalization
How does competition influence imports?
It encourages countries to import goods that are produced more efficiently elsewhere.
p.20
Drivers of Globalization
What has contributed to the increase in trade efficiency in the last 30 years?
Reduction of transportation costs.
p.14
Mercantilism and Trade Surplus
What key problem is associated with mercantilism?
It is considered a zero-sum game.
p.4
Barriers to Globalization
How do tariffs and subsidies impact globalization?
They create financial barriers to trade.
p.8
Costs and Challenges of Globalization
What economic issues are associated with political populism in Europe?
Weak economic growth, low productivity, job insecurity, and unstable markets.
p.4
Barriers to Globalization
How does lack of familiarity with a target location affect globalization?
It can hinder market entry and expansion.
p.3
Drivers of Globalization
What social aspect is a driver of globalization?
The rise of a global culture and consumer pressures.
p.17
Comparative and Absolute Advantage Theories
What should countries specialize in according to Absolute Advantage Theory?
Producing goods in which they are most efficient, or have an absolute advantage.
p.5
Regionalization vs. Localization
What is regionalisation?
The process of creating a common market and transport/movement corridors based on mutual interests.
p.5
Regionalization vs. Localization
What are transport/movement corridors?
Designated routes that facilitate the movement of goods and people between regions.
p.4
Barriers to Globalization
What type of controls can limit the movement of people across borders?
Border/Immigration Controls.
p.8
Costs and Challenges of Globalization
How does the refugee crisis relate to globalization?
It is both a consequence of globalization and a cause of revolt against it.
p.3
Drivers of Globalization
What political factors drive globalization?
Changing political situations, government policies, and emergence of new forms of governance.
p.7
Costs and Challenges of Globalization
How can economic growth related to globalization negatively impact the environment?
It can cause environmental stress.
p.19
Comparative and Absolute Advantage Theories
What type of competitiveness is not considered in the comparative advantage theory?
Non-price competitiveness.
p.19
Comparative and Absolute Advantage Theories
What action can governments take that limits the effectiveness of comparative advantage?
Governments may restrict trade.
p.5
Regionalization vs. Localization
What is localisation?
The focus on local segments and markets, often due to a lack of capacity to expand.
p.3
Drivers of Globalization
How do emerging markets relate to globalization?
They contribute to growth and risk management.
p.2
Definition and Elements of Globalization
What are some key elements of globalization according to Hill and others?
Shrinking space, shrinking time, disappearing borders, and creation of a global market.
p.13
Comparative and Absolute Advantage Theories
What is the principle of Absolute Advantage?
The ability of a country to produce more of a good with the same resources than another country.
p.13
International Trade Patterns and Theories
What does Raymond Vernon's Product Life Cycle (PLC) theory explain?
The stages a product goes through from introduction to decline and how it affects trade patterns.
