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Questions and Answers
What question arose from the COVID-19 crisis regarding supply chains?
What question arose from the COVID-19 crisis regarding supply chains?
Which factor created new challenges and opportunities for international business in North America?
Which factor created new challenges and opportunities for international business in North America?
Which ecological challenge has globalization NOT contributed to?
Which ecological challenge has globalization NOT contributed to?
What was a significant aspect of the economic landscape in North America during the 1800s?
What was a significant aspect of the economic landscape in North America during the 1800s?
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Which of the following statements about the Belt and Road Initiative (BRI) is accurate?
Which of the following statements about the Belt and Road Initiative (BRI) is accurate?
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Which statement about Mercosur is correct in the context of North American international business?
Which statement about Mercosur is correct in the context of North American international business?
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Which of the following was NOT a period characterized by international trade exploitation by European powers?
Which of the following was NOT a period characterized by international trade exploitation by European powers?
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What aspect of supply chains became increasingly important due to the COVID-19 crisis?
What aspect of supply chains became increasingly important due to the COVID-19 crisis?
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What is a significant financial risk associated with the BRI?
What is a significant financial risk associated with the BRI?
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How does the BRI approach financial conditions compared to Western investments?
How does the BRI approach financial conditions compared to Western investments?
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Which factor contributed to globalization by liberalizing world trade?
Which factor contributed to globalization by liberalizing world trade?
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What trend has South America witnessed in the 20th century?
What trend has South America witnessed in the 20th century?
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Which statement regarding the current state of South America is correct?
Which statement regarding the current state of South America is correct?
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What challenge related to energy consumption is faced by Asia?
What challenge related to energy consumption is faced by Asia?
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Which historical entities were significant during the colonial era in Asia?
Which historical entities were significant during the colonial era in Asia?
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What is a characteristic of the past and present of globalization in South America?
What is a characteristic of the past and present of globalization in South America?
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How do emerging markets develop relevant competitors for the global market?
How do emerging markets develop relevant competitors for the global market?
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Which statement about the Bretton Woods Agreement is true?
Which statement about the Bretton Woods Agreement is true?
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Which statements about BRICS are correct?
Which statements about BRICS are correct?
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Which of the following was NOT true about historical trading families?
Which of the following was NOT true about historical trading families?
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What was a characteristic of emerging market firms?
What was a characteristic of emerging market firms?
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Which statement is false regarding the Bretton Woods Agreement?
Which statement is false regarding the Bretton Woods Agreement?
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Which characteristic does NOT describe BRICS?
Which characteristic does NOT describe BRICS?
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What was one consequence of the introduction of the Gold Standard in 1823?
What was one consequence of the introduction of the Gold Standard in 1823?
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What does economic globalization involve?
What does economic globalization involve?
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Which statement about the US-China trade war is accurate?
Which statement about the US-China trade war is accurate?
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What challenge does the Belt and Road Initiative (BRI) face?
What challenge does the Belt and Road Initiative (BRI) face?
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What primarily distinguishes IKEA from other furniture retailers?
What primarily distinguishes IKEA from other furniture retailers?
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How did COVID-19 impact global supply chains?
How did COVID-19 impact global supply chains?
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What was a consequence of radical movements on international business?
What was a consequence of radical movements on international business?
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What was the effect of the US-China trade war on imports from China?
What was the effect of the US-China trade war on imports from China?
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Which of the following correctly identifies a development in international trade after World War II?
Which of the following correctly identifies a development in international trade after World War II?
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What does protectionism primarily involve in international trade?
What does protectionism primarily involve in international trade?
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Which statement is true regarding the trends in international trade policies?
Which statement is true regarding the trends in international trade policies?
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Which countries are included in the BRICS grouping?
Which countries are included in the BRICS grouping?
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What were significant factors contributing to the decline in foreign trade during the inter-war period?
What were significant factors contributing to the decline in foreign trade during the inter-war period?
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What principle is enforced by the WTO to assure fair trade among nations?
What principle is enforced by the WTO to assure fair trade among nations?
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Which factor characterized the economic power dynamics immediately after World War II?
Which factor characterized the economic power dynamics immediately after World War II?
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How did the role of emerging markets change global business in the new millennium?
How did the role of emerging markets change global business in the new millennium?
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What was a characteristic of the German Hanse?
What was a characteristic of the German Hanse?
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Study Notes
Global Supply Chains
- The COVID-19 crisis highlighted the fragility of global supply chains, increasing emphasis on early warning systems and supply chain resilience.
Global Business in North America
- The Industrial Revolution in the 1800s significantly contributed to the growth of multinational corporations (MNCs), especially with projects like the Transcontinental Railroad.
- The digital revolution continues to create new challenges and opportunities for international business.
Globalization's Impact on Ecology
- Globalization contributes to environmental challenges including pollution, greenhouse effect, and ozone depletion.
The Belt and Road Initiative (BRI)
- The BRI is not a purely economic project, but involves significant financial risks due to loans given to potentially unreliable countries.
- China provides loans with fewer conditions compared to Western institutions like the World Bank, making the BRI attractive to less democratic countries.
Ancient Silk Road Challenges
- The ancient Silk Road presented logistical challenges, information asymmetry regarding goods, and difficulties in managing teams along the journey.
Trade Liberalization
- The General Agreement on Tariffs and Trade (GATT), and its successor, the World Trade Organization (WTO), fostered globalization by liberalizing world trade.
- The Uruguay Round was a significant agreement under the GATT.
Globalization in South America
- South America experienced increased foreign direct investment (FDI) in the 20th century, but faced challenges related to economic nationalism and political instability.
- Despite political instability, South America is achieving economic progress and embracing digitalization with growing tech hubs.
Globalization in Asia
- The British and Dutch East India companies played significant roles in the colonial era of Asia.
- Rising energy demands in Asia, driven by economic growth, present challenges for carbon reduction goals.
- Asia is becoming a global leader in technology and innovation due to the rise of technology companies.
Historical Trading Empires
- The Medici, Tucher, and Brunner families were influential figures in building trading empires during the Middle Ages.
- The German Hanse, despite having no official constitution or registry, showcased a strong corporate culture.
Emerging Market Competitors
- Emerging market firms can be highly efficient and competitive, whether as low-end producers or high-end producers in specific markets.
- They exhibit distinct internationalization behaviors and are accustomed to challenging yet growth-oriented market environments.
Bretton Woods Agreement
- The Bretton Woods Agreement established a fixed exchange rate system with the US dollar as the leading currency.
- The Fed was obliged to exchange US dollars into gold for any country during this period.
- This system did not involve floating exchange rates.
- The Bretton Woods Agreement is not in effect today.
BRICS
- BRICS stands for Brazil, Russia, India, China, and South Africa.
- Egypt, Iran, and the UAE became part of the BRICS in 2024.
Historical Trading Families and Organizations
- Trading families like the Tucher dynasty assigned their sons to manage foreign subsidiaries to mitigate financing difficulties.
- The German Hanse's informal rules and norms fostered a strong corporate culture.
- The introduction of the Gold Standard in 1823 helped stabilize foreign exchange rates.
- The Stock Corporation Law facilitated ex-ante financing.
Political Movements and Critical Events
- Populist politics created a negative perception of international trade and investment.
- Radical movements amplify the risk and cost of doing international business.
- COVID-19 highlighted vulnerabilities in global supply chains, showcasing the importance of supply chain resilience.
Economic Globalization
- Economic globalization encompasses the movement of goods, services, data, technology, and capital across borders.
US-China Trade War
- US imports of Chinese goods, excluding some items exempt from tariffs, experienced tariff-related increases and shifts towards other countries like Vietnam.
- US imports of Chinese goods without tariffs have decreased due to Chinese retaliatory policies.
Belt and Road Initiative (BRI) Challenges
- The port in Gwadar, Pakistan, is currently not economically viable, and infrastructure projects have been delayed.
- While the flagship project in Pakistan aims to bring economic growth to the designated regions, the government is accumulating more debt through these BRI/CPEC projects.
IKEA's Competitive Advantage
- IKEA distinguishes itself through its self-service shopping concept, flat-packed furniture, and commitment to sustainable business practices and environmentally friendly products.
Post-WWII International Trade
- Protectionism saw a reduction in tariff barriers, benefiting countries like China.
- Liberalizing international trade and economic power have been rebalanced among nations.
Rise of Multinational Enterprises (MNEs)
- Technological innovations, such as the Morse Taper, contributed to the rise of MNEs.
BRICS Countries
- Brazil, Russia, India, and China are members of BRICS.
Inter-War Period Trade Downturn
- The inter-war period witnessed a decline in foreign trade due to nationalism, protectionism, the world economic crisis, and nationalization of war losers' property abroad.
WTO Principles
- The WTO enforces principles like Most Favored Nation (MFN) status and trade without discrimination, ensuring fair trade between nations.
The German Hanse
- The German Hanse was characterized by strong informal rules and norms, which were crucial to its success.
Global Economic Power Shifts
- Following WW II, global business was initially dominated by the US and the Soviet Union, later joined by a growing Europe to form a triad of global economic powers.
- Emerging markets are reshaping the global business landscape in the 21st century.
- Japan joined the established triad of global economic powers in the late 1990s.
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Description
Explore the intricate dynamics of global supply chains and their resilience in the wake of the COVID-19 pandemic. Delve into the historical development of multinational corporations and the ongoing challenges posed by globalization on ecology. Understand the nuances of initiatives like the Belt and Road Initiative and their financial implications.
