6.3 Globalization

• Technological advancements, such as the Internet and smartphones, enable seamless communication and coordination
• The increased mobility of labor facilitates the movement of skilled workers
• Match the factor driving globalization with its explanation:

  Technological Advancements ↔️ Enable seamless communication and coordination

  Improved Transport ↔️ Reduce the time and cost of moving goods internationally

  Reduced Trade Barriers ↔️ Lower tariffs and quotas, fostering increased trade
• What is an example of a financial institution that simplifies the flow of capital across borders?

  International stock exchange
• Exposure to exchange rate fluctuations is a negative impact of globalization on supply chains.


  True
• Technological advancements enable seamless communication and coordination across borders
• The globalization of financial markets simplifies the flow of capital
• Multinational corporations like Apple can leverage globalization to manufacture products in China
• Outsourcing involves contracting work to external providers, often in lower-cost countries.


  True
• What is the process by which the world becomes increasingly interconnected through the movement of goods, services, capital, and people across national borders?

  Globalization
• What is an example of an agreement that reduces trade barriers to foster trade between countries?

  NAFTA
• Which multinational corporation operates in over 200 countries, distributing beverages worldwide?

  Coca-Cola
• Migrant labor agreements facilitate the increased mobility of labor across borders.


  True
• Globalization increases the complexity of navigating different regulations
• What are the key drivers of globalization that enable businesses to expand internationally?

  Technological advancements, improved transport, reduced trade barriers
• Match the factor with its example:

  Reduced Trade Barriers ↔️ NAFTA, WTO agreements

  Increased Mobility of Labor ↔️ Migrant labor agreements

  Globalization of Financial Markets ↔️ International stock exchanges
• Match the impact of globalization on businesses with its positive or negative aspect:

  Competition ↔️ Increased innovation and efficiency

  Market Access ↔️ Ability to expand into new markets

  Supply Chains ↔️ Access to cheaper inputs

  Workforce ↔️ Sourcing skilled labor globally
• Order the strategies for businesses to adapt to globalization based on their increasing complexity and risk:

  1️⃣ Localization

  2️⃣ Outsourcing

  3️⃣ Offshoring

  4️⃣ Diversification

  5️⃣ Internationalization
• Match the globalization strategy with its example:

  Localization ↔️ McDonald's offering different menu items in different countries

  Diversification ↔️ Unilever selling both food and personal care products globally

  Internationalization ↔️ Starbucks opening cafes in Europe and Asia

  Outsourcing ↔️ Apple contracting iPhone manufacturing to Foxconn

  Offshoring ↔️ GE moving call center operations to India
• Improved transport, like container ships, reduces the time and cost of moving goods.

  True
• Globalization of financial markets simplifies the flow of capital across borders.


  True
• Container ships are an example of improved transport
• Match the impact of globalization with its positive or negative effect:

  Competition ↔️ Increased innovation and efficiency

  Market Access ↔️ Ability to expand into new international markets

  Supply Chains ↔️ Access to cheaper inputs from global suppliers

  Workforce ↔️ Ability to source skilled labor globally
• What is a multinational corporation that leverages globalization to manufacture products in China and sell them worldwide?

  Apple
• Improved transport reduces the time and cost of moving goods internationally.


  True
• Globalization has enabled businesses to expand internationally and consumers to access a broader range of products worldwide.


  True
• Internationalization involves expanding operations and sales into new international markets.


  True
• Offshoring refers to relocating business processes or functions to another country