Questions and Answers
What role does the IMF play in the global financial system?
Which technological advancement has NOT been suggested to improve logistics?
How has digitization affected trade costs according to the WTO?
What is one way technology facilitates globalization in finance and investment?
Signup and view all the answers
Smartphones and mobile internet access are transforming which of the following industries?
Signup and view all the answers
What is a result of advances in transportation technology?
Signup and view all the answers
What aspect of international communication has contributed to globalization?
Signup and view all the answers
Which factor is NOT associated with changes in industry structures due to technology?
Signup and view all the answers
What primarily motivates highly skilled workers to migrate to larger economies?
Signup and view all the answers
Which of the following statements best describes the trend of e-commerce TNCs' investments in 2020 and 2021?
Signup and view all the answers
How does technology impact the global economy according to the information provided?
Signup and view all the answers
What is a major characteristic of digital transnational corporations in relation to foreign markets?
Signup and view all the answers
Which of the following accurately describes the movement of labor in international contexts?
Signup and view all the answers
What trend was observed in cybersecurity during the COVID-19 pandemic?
Signup and view all the answers
What is the estimated worth of the global marketplace for information and communications technology?
Signup and view all the answers
Which statement correctly reflects the behavior of corporations involved in technology development when entering foreign markets?
Signup and view all the answers
What is the primary factor that allows developing economies to have a comparative advantage in labour-intensive manufacturing?
Signup and view all the answers
Which of the following is NOT considered a barrier to international labor migration?
Signup and view all the answers
How do advanced economies typically differ from developing economies in terms of labor markets?
Signup and view all the answers
What does the term 'international division of labour' primarily refer to?
Signup and view all the answers
Which of the following statements best describes the international business cycle?
Signup and view all the answers
What role do digital transnational corporations (TNCs) play in the global economy?
Signup and view all the answers
Which of the following is a significant effect of technological transfer in the context of international labor?
Signup and view all the answers
Global investment trends influence labor migration primarily by:
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.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
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.