Global Trade Trends 1930-2008

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Questions and Answers

Which of the following statements best explains the impact of falling transport costs on global trade?

Global trade has decreased due to rising transport costs.

Transport costs have no impact on the location of call centres.

Transport costs have made local production more favorable.

Countries can now sell products worldwide at lower prices. (correct)

By how much did the share of Asia in world trade increase from 1955 to 2005?

There was no significant change.

It quadrupled.

It doubled.

It nearly trebled. (correct)

How has the total world value of trade changed from 1955 to 2005?

It fluctuated minimally.

It remained unchanged.

It increased dramatically. (correct)

It decreased significantly.

Which two countries are highlighted as examples of former Third World countries becoming significant global trade players?

India and Brazil Signup and view all the answers

What general behavior is observed among businesses and consumers in emerging markets regarding trade?

They behave as if there is a single global market. Signup and view all the answers

What is the primary goal of glocalisation in business?

To successfully reach customers worldwide by considering local preferences Signup and view all the answers

Which of the following best describes multinationals?

Businesses that operate in several countries across various sectors Signup and view all the answers

What suggests that glocalisation has been successful for global businesses?

Flexible menu variations based on local tastes Signup and view all the answers

Which fast food item reflects a glocalisation strategy by McDonald's in Japan?

Chicken Katsu Burger Signup and view all the answers

What risk do businesses face when they neglect market research in foreign markets?

Loss of competitiveness Signup and view all the answers

What is a significant disadvantage faced by unskilled workers in western economies due to globalization?

Loss of jobs or falling real wages Signup and view all the answers

What was a specific strategy that Walmart introduced in their UK operations after acquiring ASDA?

Implementing a greeting initiative for customers Signup and view all the answers

What environmental issue is exacerbated by globalization according to the content?

Deforestation and flooding Signup and view all the answers

How did McDonald's utilize global branding effectively?

By establishing strong brand recognition worldwide Signup and view all the answers

What outcome did Walmart face when applying its customer greeting strategy in Germany?

Complete failure of the strategy Signup and view all the answers

Which of the following is a consequence mentioned regarding workers in developing countries due to globalization?

Exploitation through long hours and low wages Signup and view all the answers

Which of the following companies is noted as one of the top ten most valuable global brands in 2016?

Coca-Cola Signup and view all the answers

Which social media platforms are mentioned as strategic places for advertising?

Twitter and Google Signup and view all the answers

What is an essential part of successfully launching a product in a new market?

Conducting in-depth market research to identify needs. Signup and view all the answers

Study Notes

Falling Transport and Communication Costs

Between 1930 and 2000 the cost of transatlantic phone calls, sea freight, and air transport has decreased dramatically
Since 1970, the cost of satellite use has fallen by 98%
Since 1990, sea freight has decreased by 50%, and air transport has decreased by 75%

The Changing Pattern of World Trade

Asia's share of world trade has nearly tripled between 1955 and 2005
The value of Asia's share of world trade increased from 10 billion USD in 1955 to 5,000 billion USD in 2005
Countries such as India and Brazil are experiencing significant development, becoming major players in the global marketplace

Trade in Goods and Services

Trade flows grew gradually until the late 1990s
The early 2000s saw a strong rise in trade followed by a sharp decline after the economic crisis in 2008
Trade growth from 1995 to 2001 was strong, followed by a boom from 2002-2008
China's accession to the WTO in 2001 had a significant impact on the increasing world trade from 2002-2008

Impacts of Globalisation

Skilled and educated workers in developing countries now have greater access to global job markets
Unskilled workers in Western economies have seen real wages decrease, or lost jobs to low-cost economies
Viable businesses have been outcompeted by low-cost, overseas competitors
Workers in developing countries have been exploited, working long hours for low wages in unacceptable conditions
Deforestation and flooding have been caused by excessive land development
The huge increase in the transportation of goods contributes to global warming

Developing Strategies in the Global Market

Merging with or acquiring businesses in other countries is a popular strategy for external growth
Horizontal integration requires significant direct investment
Businesses with strong brand identities can introduce their products and services in other countries based on brand recognition
Global brand managers use social media to promote their brands to a global audience
Businesses should carefully consider the target market, identifying specific market segments and their needs during product launches
Successful global businesses often employ global localisation (glocalisation) strategies, adapting products and marketing to local customs and preferences
Maintaining and promoting a global brand name is essential to glocalisation
Consumer tastes change and businesses must invest in market research to be competitive

Multinationals

Multinational businesses operate in various countries, engaging in activities like resource extraction, manufacturing, and retailing
Multinational businesses have a significant impact on the global economy, with some having larger turnovers than the GDP of some medium-sized countries
They wield significant power and influence in the global market

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Description

Explore the significant changes in global transport, communication costs, and trade patterns from 1930 to 2008. This quiz delves into the dramatic decreases in costs related to transport and the increasing role of Asia in world trade. Test your knowledge on the evolving landscape of international commerce and its implications on global economics.