Podcast
Questions and Answers
What is one effect of the liberalization of trading rules due to globalization?
What is one effect of the liberalization of trading rules due to globalization?
What market condition often drives organizations to seek global expansion?
What market condition often drives organizations to seek global expansion?
Which of the following is a characteristic of cost drivers in global business?
Which of the following is a characteristic of cost drivers in global business?
What is a consequence of increased inter-firm competition in the global market?
What is a consequence of increased inter-firm competition in the global market?
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What does the establishment of organizations like GATT and WTO signify in terms of political drivers?
What does the establishment of organizations like GATT and WTO signify in terms of political drivers?
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Study Notes
Technological Drivers
- Rapid growth of the Internet has enabled global e-business and e-commerce.
- Effective computing and communication technologies are now available at low costs.
Political Drivers
- Globalization has liberalized trading rules by reducing restrictions on goods exchange between nations.
- Deregulated markets remove government legislation in specific sectors, exemplified by the oil industry in the Philippines.
- Lowered tariffs and increased foreign direct investment have resulted from these changes.
- Key institutions: GATT established in 1947, WTO formed in 1995; ongoing privatization and market opening in Eastern Europe.
Market Drivers
- Saturated domestic markets limit growth opportunities, prompting organizations to seek global expansion.
- Everyday customer needs and the use of global marketing channels encourage internationalization.
Cost Drivers
- Variability in sourcing efficiency and costs across countries allows global companies to leverage cost advantages.
- Enables companies to achieve economies of scale, thereby minimizing high product development expenses.
Competitive Drivers
- Increased global inter-firm competition compels organizations to operate internationally.
- Strong interdependencies and significant two-way trade and Foreign Direct Investments (FDIs) further enhance competitive dynamics in the global market.
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Description
This quiz explores the impact of globalization on e-business and e-commerce, focusing on the liberalization of trading rules and deregulated markets. It also discusses technological drivers that have facilitated these changes, particularly the rapid growth of the Internet. Test your understanding of these concepts and their implications in today's economy.
