Podcast
Questions and Answers
What is the daily exchange volume on the world's currency markets?
What is the daily exchange volume on the world's currency markets?
Which of the following is NOT a characteristic of globalization?
Which of the following is NOT a characteristic of globalization?
What is a significant consequence of globalization in everyday life?
What is a significant consequence of globalization in everyday life?
What is the primary driver of the current globalized business environment?
What is the primary driver of the current globalized business environment?
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Which of the following is a force driving globalization?
Which of the following is a force driving globalization?
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What is a consequence of the Asian financial crisis in 1997?
What is a consequence of the Asian financial crisis in 1997?
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What is globalization, according to Grewal and Levy?
What is globalization, according to Grewal and Levy?
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What percentage of the world's population lives in industrialized countries?
What percentage of the world's population lives in industrialized countries?
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What is the approximate income of 1.2 billion people in the world?
What is the approximate income of 1.2 billion people in the world?
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What is a benefit of globalization mentioned in the text?
What is a benefit of globalization mentioned in the text?
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Study Notes
Globalization
- This is the golden age for business, commerce, and trade, with instant information and communication making everything available to anyone, anywhere.
- Markets are now global, and many corporations are richer and more powerful than many countries.
History of Globalization
- There has always been trade between countries and societies, but never on a scale close to today's levels.
- A combination of reduced trade barriers, financial liberalization, and technological revolution have changed the nature of business in industrialized countries.
Benefits of Globalization
- Globalization has brought many benefits, including wealth, faster economic growth, higher living standards, accelerated innovation, and new opportunities for individuals and countries.
Drawbacks of Globalization
- Globalization can also take away wealth, as seen in the Asian financial crisis of 1997, which sent millions of people back into poverty.
Statistics on Globalization
- 1.2 billion people live in extreme poverty, on an income of roughly US $1 a day or less.
- 3 billion people live on $2 a day or less.
- Industrialized countries, with 19% of the world's population, account for 71% of global trade in goods and services, 58% of foreign direct investment, and 91% of all Internet users.
- Over $1.5 billion is exchanged on the world's currency markets each day.
Definitions of Globalization
- "Processes by which goods, services, capital, people, information, and ideas flow across national borders." (Grewal/Levy)
- "Trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies." (Wild/Wild/Han)
Everyday Examples of Globalization
- Globalization involves us all, from waking up to a GE alarm clock made in China to sipping a Starbucks coffee harvested in Colombia.
Characteristics of Globalization
- Two characteristics of globalization are:
- Falling barriers to trade and investment
- Technological innovation
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Description
Explore the opportunities and implications of globalization on business, commerce, and trade.
