Globalization Insights Quiz

The process of integrating national economies into a global marketplace, driven by trade, investment, and technology.

Merging of national markets into a single global marketplace, led by consumer demand for standardized products.

Sourcing goods and services from various countries to leverage cost and quality advantages.

All commercial transactions between two or more countries, including sales, investments, and transportation.

The forces accelerating the integration of economies, including technological advancements, reduced trade barriers, global institutions, and the rise of MNEs.

An international organization overseeing trade agreements and resolving disputes to promote free trade.

Concerns about the loss of control by governments over their economic policies due to international agreements.

Increased pollution and resource depletion due to global industrial activities.

Strategic goals identify the products a company will create, the markets it will enter, and how it will compete while remaining profitable.

Vision is a future-oriented declaration of an organization's purpose and aspirations, while a mission outlines the objectives and approaches to achieve that vision.

Strategic planning involves identifying potential markets, assessing opportunities and threats, analyzing internal strengths and weaknesses, formulating strategies, setting clear objectives, implementing programs and policies, allocating resources, and monitoring performance.

A core competency is a unique strength that provides a competitive advantage, like a company's brand reputation or advanced technology.

Cost leadership focuses on achieving lower costs than competitors, often by streamlining operations and maximizing efficiency.

The weakening or loss of local cultures and traditions due to the influence of global cultural norms.

Demonstrations against the negative effects of globalization, such as labor exploitation, environmental damage, and the loss of local cultures.

Differentiation focuses on offering unique products or services that stand out from competitors, often through features or quality.

A value chain is the sequence of activities that add value to a product or service as it moves from raw materials to a finished item delivered to the customer.

Companies seeking to increase revenue and profits by entering new markets.

Companies obtaining materials, labor, or technology that aren't available in their home country.

Global integration focuses on standardizing products and services across multiple markets to achieve economies of scale.

Companies diversifying their operations to minimize economic or political risks.

A transnational strategy seeks to balance global integration (standardization) and local responsiveness (adaptation) to meet both global and local needs.

Localization strategy involves adapting products and services to meet the specific needs and preferences of local markets.

Trade of tangible goods (products) between countries.

Trade of services (intangible) between countries, like banking, consulting, or tourism.

A company investing in and owning operations in another country.

Investing in foreign securities (like stocks and bonds) without owning operations.

Companies with operations in multiple countries.

The natural features of a region that influence business decisions.

The shared values, beliefs, rules, and customs of a group of people.

How a country is governed, affecting business stability and regulations.

The laws and regulations in a country, affecting business operations.

Cultural dimensions that describe differences between countries: Power Distance, Individualism vs.Collectivism, Masculinity vs.Femininity, Uncertainty Avoidance, Long-term vs.Short-term Orientation.

The total value of goods and services produced within a country divided by its population. It gives a snapshot of a nation's economic activity and wealth.

Adjusts GDP per capita to reflect the cost of living differences across countries, making comparisons more accurate.

Measures a country's development based on life expectancy, education levels, and income. Scores range from 0 to 1, with higher values indicating better development.

Reflect how quickly a country's economy is expanding.

An economic system where resources are allocated based on supply and demand, encouraging innovation, efficiency, and economic freedom.

A centrally controlled economic system where the government makes all decisions about production and distribution, often leading to inefficiencies.

A combination of market-driven principles and some government intervention.

Legal protections that guarantee individuals and businesses the right to own and control their property, encouraging investment and economic activity.

The creation of new products, services, or processes, driving economic growth and increased productivity.

A thriving environment that encourages entrepreneurship, leading to the creation of successful firms and economic value.

Argues that lack of legal property ownership in developing countries hampers economic potential.

Coastal nations tend to have better access to trade routes, promoting economic growth.

Favorable weather conditions that support higher population densities and economic development.

Unrecorded economic activity that avoids taxation, like cash transactions and barter.

Moral principles that guide behavior, shaping what is considered right or wrong.

A company's obligation to contribute positively to society, considering its impact on stakeholders.

Groups or individuals who have an interest in a company, such as shareholders, employees, customers, suppliers, and the community.

A business strategy that aims to create both economic and social value by addressing social problems while increasing profits.

A record of all economic transactions between a country and the rest of the world, including imports, exports, and investments.

Three stages of moral reasoning: Preconventional (punishment/reward), Conventional (conformity to norms), Postconventional (internal principles).

Moral decision-making based on the consequences of an action, where good outcomes are considered ethical.

Moral decision-making based on the inherent rightness or wrongness of an action, regardless of its outcomes.

The belief that ethical behavior is determined by the culture or society, leading to variations in norms.

The belief that universal ethical standards apply across all cultures, regardless of local customs.

The misuse of power for personal gain, often involving bribery or dishonest practices.

Offering something of value to influence someone's decision, often illegal.

Meeting the needs of the present generation without compromising the ability of future generations to meet their own needs, often linked to environmental protection.

Guidelines for ethical behavior within a company, outlining expected standards for employees and partners.

A company's voluntary commitment to operating ethically and sustainably, encompassing environmental, social, and governance issues.

The interconnectedness of a country's political, economic, and legal systems. These systems shape the environment for international business and determine the level of economic well-being.

A political philosophy that prioritizes collective goals and social harmony over individual freedoms. It emphasizes the importance of the group over the individual.

A political philosophy that champions individual freedom and self-reliance in economic and political pursuits. It emphasizes personal autonomy and the right to pursue self-interests.

A system of government where power resides with the people, either directly or through elected representatives. Citizens have the right to participate in political decisions.

A system of government where a single person or party exerts total control over all aspects of human life. It suppresses dissent and individual freedoms.

A legal system based on tradition, precedent, and custom. It relies on court decisions and interpretations of previous cases.

A legal system based on detailed written codes and statutes. It relies heavily on codified laws and legal principles.

A legal system based on religious teachings and interpretations. Religious principles guide legal decisions and societal norms.

The risk of political changes impacting business operations, such as expropriation, government intervention, or instability.

The seizure of foreign assets by a government, often without compensation.

The legal rights over the use and resources and income derived from a specific piece of property.

The legal rights granted to inventors and creators to protect their inventions, designs, and creative works.

The legal regulations and standards that ensure the safety of products for consumers and protect manufacturers from liability.

A set of ideas that explains why countries trade with each other and what the effects of trade are. It helps answer questions about what goods to import and export, how much to trade, and who to trade with.

The movement of production factors, like labor and capital, between countries. This can be driven by seeking higher wages, better opportunities, or higher returns on investments.

An economic theory that emphasizes a country's wealth being measured by its gold reserves. It encourages a trade surplus (exporting more than importing) through government intervention, like restricting imports and subsidizing exports.

A modern version of mercantilism where countries prioritize trade surpluses to achieve social or political goals, like reducing unemployment. It still involves government intervention.

The absence of government intervention in trade. It encourages open borders for goods and services to flow freely between countries, advocating for unrestricted trade.

A country should specialize in and export products it can produce more efficiently than other countries. This leads to mutual gain through trade.

Even if a country is more efficient at producing everything, it should specialize in the goods it produces most efficiently relative to others. Everyone gains by focusing on their comparative advantage.

Large countries tend to rely less on trade due to their diverse resources and larger domestic markets. Smaller countries, on the other hand, depend more on trade to access resources they may not have.

Countries export products that use their abundant resources. So, countries with ample labor will export labor-intensive goods, while those with abundant capital will export capital-intensive products.

Countries with similar per capita incomes and preferences are more likely to trade with each other. This is because they are more likely to demand similar goods and services.

A product goes through stages: introduction, growth, maturity, and decline. As a product matures, production may shift from developed countries to lower-cost countries.

A framework by Michael Porter that identifies four key factors that contribute to a nation's competitive advantage: factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry.

Companies may relocate production instead of trading goods. This can happen when factor costs become higher, regulations are stricter, or foreign markets offer more advantages.

Trade and factor mobility can support and reinforce each other. For example, companies invest in foreign manufacturing plants to make goods for export.