Global Technology Expansion and Communication Impact

Questions and Answers

What role does the IMF play in the global financial system?

Provides loans to developing countries only.

Stabilizes economies experiencing currency crises. (correct)

Regulates international trade agreements.

Promotes international investment opportunities.

Which technological advancement has NOT been suggested to improve logistics?

Freight technology innovations.

Micro warehouses near customers.

GPS technology for delivery routing. (correct)

Blockchain technology for tracking.

How has digitization affected trade costs according to the WTO?

Reduced trade costs by 6%. (correct)

Increased trade costs by 6%.

Eliminated trade costs entirely.

Had no significant effect on trade costs.

What is one way technology facilitates globalization in finance and investment?

Through secure, high-speed networks. Signup and view all the answers

Smartphones and mobile internet access are transforming which of the following industries?

Retail, transport, leisure, and professional services. Signup and view all the answers

What is a result of advances in transportation technology?

Greater mobility of labor between economies. Signup and view all the answers

What aspect of international communication has contributed to globalization?

High-speed broadband access. Signup and view all the answers

Which factor is NOT associated with changes in industry structures due to technology?

Stringent government regulations. Signup and view all the answers

What primarily motivates highly skilled workers to migrate to larger economies?

Higher pay and better job opportunities Signup and view all the answers

Which of the following statements best describes the trend of e-commerce TNCs' investments in 2020 and 2021?

Investments increased by 120% in 2020 and 10% in 2021 Signup and view all the answers

How does technology impact the global economy according to the information provided?

By linking businesses, individuals, and nations Signup and view all the answers

What is a major characteristic of digital transnational corporations in relation to foreign markets?

They often invest in local education and training Signup and view all the answers

Which of the following accurately describes the movement of labor in international contexts?

Less internationalised, with most workers remaining near home Signup and view all the answers

What trend was observed in cybersecurity during the COVID-19 pandemic?

An increase in cybersecurity attacks Signup and view all the answers

What is the estimated worth of the global marketplace for information and communications technology?

$5 trillion Signup and view all the answers

Which statement correctly reflects the behavior of corporations involved in technology development when entering foreign markets?

They seek to sell products and services locally Signup and view all the answers

What is the primary factor that allows developing economies to have a comparative advantage in labour-intensive manufacturing?

Large population of low-skilled workers Signup and view all the answers

Which of the following is NOT considered a barrier to international labor migration?

Currency exchange rates Signup and view all the answers

How do advanced economies typically differ from developing economies in terms of labor markets?

Advanced economies emphasize specialized services for skilled workers Signup and view all the answers

What does the term 'international division of labour' primarily refer to?

The movement of skilled workers to countries where they are needed Signup and view all the answers

Which of the following statements best describes the international business cycle?

It influences global economic fluctuations through interconnectedness Signup and view all the answers

What role do digital transnational corporations (TNCs) play in the global economy?

They promote offshoring for cost reduction Signup and view all the answers

Which of the following is a significant effect of technological transfer in the context of international labor?

It creates unequal skill distribution in the global labor market Signup and view all the answers

Global investment trends influence labor migration primarily by:

Increasing job opportunities in developed nations Signup and view all the answers

Study Notes

Global Expansion of Technology Corporations

Leading ICT corporations like Google, Salesforce, and IBM are expanding globally.
Direct entry into foreign markets allows corporations to target local consumers effectively.
Significant investment in education and training is common when entering new markets.
Digital Transnational Corporations (TNCs) are key drivers of increased foreign investment.
In 2020, e-commerce TNCs saw a 120% rise in greenfield investments, followed by a 10% increase in 2021.

Impact of Technology on Communication

The internet facilitates communication, linking businesses, individuals, and nations in the global economy.
Technology reduces business costs, enhancing economic integration.
The global market value for information and communications technology is approximately $5 trillion.
The COVID-19 pandemic sped up technology adoption and usage.
Cybersecurity attacks surged by 40% during this period.

International Division of Labour and Migration

International labour markets are less internationalized; many workers remain close to home.
Increased migration is noted among those seeking better job opportunities abroad.
High-skilled workers migrate to wealthier economies like Europe and the US for higher pay and job availability.
Two-thirds of international migrant workers move to high-income countries.
There is a demand for low-skilled labour in advanced economies, making it challenging to find local workers for certain jobs.

Barriers to Labour Mobility

Different barriers affect labour movement, including:
- Immigration restrictions
- Language barriers
- Cultural differences
- Incompatible educational systems
- Unrecognized professional qualifications
Many prefer to stay near family and friends, though some migrate due to instability and conflict.
Businesses often offshore operations to take advantage of cheaper labor costs in other countries.
The international division of labour illustrates the concept of comparative advantage, urging economies to specialize in low-cost production.

International and Regional Business Cycles

Business cycles denote fluctuations in economic growth, while international business cycles reflect global economic changes via Gross World Product (GWP).
Economic conditions in one country can significantly influence others, as observed during global crises like the financial crash, COVID-19, and 9/11.
The International Monetary Fund (IMF) plays a crucial role in stabilizing the global economic system, particularly during currency crises.

Investment and Transnational Corporations

Development in freight technology, including micro warehouses, enhances logistics efficiency.
The use of blockchain simplifies tracking for trade, contributing to a 6% reduction in trade costs due to digitization.
High-speed broadband has made international communication cheaper and more reliable, enabling global commercial services.
Technology also facilitates finance and investment globalization through fast, secure networks for money transfer.
Smartphones and mobile internet are altering industry structures, impacting retail, transport, education, leisure, and professional services.
Advances in transportation, such as non-stop flights and high-speed rail, enhance labor mobility and improve tourism accessibility.

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Description

Explore the dynamics of global technology corporations like Google and IBM as they expand into new markets. This quiz also examines the role of technology in enhancing communication and its significant impact on the economy and society during the pandemic. Test your knowledge on these transformative trends and their implications for the future.