Globalization: A Golden Age for Business
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Questions and Answers

What is the daily exchange volume on the world's currency markets?

  • More than US$10 trillion
  • More than US$100 billion
  • More than US$100 million
  • More than US$1.5 billion (correct)
  • Which of the following is NOT a characteristic of globalization?

  • Decrease in economic interdependence (correct)
  • Increase in international trade
  • Flow of goods and services across national borders
  • Cultural homogenization
  • What is a significant consequence of globalization in everyday life?

  • Decreased usage of foreign products
  • Reduced global connectivity
  • Increased interaction with foreign products and services (correct)
  • Increased production of local goods
  • What is the primary driver of the current globalized business environment?

    <p>All of the above</p> Signup and view all the answers

    Which of the following is a force driving globalization?

    <p>Falling barriers to trade and investment</p> Signup and view all the answers

    What is a consequence of the Asian financial crisis in 1997?

    <p>Millions of people were sent back into poverty</p> Signup and view all the answers

    What is globalization, according to Grewal and Levy?

    <p>Processes by which goods, services, capital, people, information, and ideas flow across national borders</p> Signup and view all the answers

    What percentage of the world's population lives in industrialized countries?

    <p>19% of the world's population</p> Signup and view all the answers

    What is the approximate income of 1.2 billion people in the world?

    <p>$1 a day or less</p> Signup and view all the answers

    What is a benefit of globalization mentioned in the text?

    <p>Faster economic growth</p> Signup and view all the answers

    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.

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