What two concepts have increased due to globalization between countries?
Interconnectedness and interdependence
Lower tariffs encourage cross-border commerce by reducing trade barriers.
True
E-commerce platforms like Amazon have contributed to technological advancements driving globalization.
True
Globalization reduces competition for businesses in the global marketplace.
False
Globalization has led to decreased interdependence between countries.
False
Globalization has increased interconnectedness and interdependence between countries.
True
Lower tariffs and regulations encourage cross-border commerce.
True
What is one benefit of globalization for businesses?
Increased market access
Arrange the following benefits of globalization for businesses in order of their contribution to growth:
1️⃣ Increased Market Access
2️⃣ Economies of Scale
3️⃣ Access to New Resources
4️⃣ Diversification
Ethical concerns in globalization include labor practices and environmental sustainability.
True
How does globalization boost economic growth in national economies?
Increased trade and investment
Increased competition from foreign firms can lead to job losses in domestic industries.
True
The benefits of globalization may increase income inequality
McDonald's adapts its menu to local tastes in different countries while maintaining its core brand, which is an example of glocalization
Match the factor driving globalization with its impact:
Technological Advancements ↔️ Facilitates global business operations
Reduced Trade Barriers ↔️ Promotes global trade and investment
Improved Logistics ↔️ Enables easier movement of goods
Match the challenge of globalization with its description:
Cultural Differences ↔️ Varying language and customs
Regulatory Compliance ↔️ Adhering to diverse legal environments
Increased Competition ↔️ Greater price pressures and market saturation
Ethical and environmental issues are common concerns in globalization.
True
Nike's labor practices have been criticized for low wages and poor working conditions.
True
Globalization involves the integration of national economies, cultures, and societies through cross-border trade, investment, migration, and technology spread
Technological advancements facilitate global business operations and market expansion
What is the contrasting concept to globalization that focuses on local operations?
Localization
Order the benefits of globalization for businesses based on their impact:
1️⃣ Increased Market Access
2️⃣ Economies of Scale
3️⃣ Access to New Resources
4️⃣ Diversification
Increased competition in globalization leads to greater price pressures
What is cross-border trade in the context of globalization?
Buying and selling goods
Technological advancements facilitate global business operations and market expansion
Globalization has led to increased interconnectedness between countries through economies, cultures, and societies
Businesses can source cheaper raw materials from around the world
Intensified global competition leads to greater price pressures
By adapting to local conditions while maintaining global coordination, successful global businesses achieve sustained success
Countries can specialize in producing goods/services where they have a comparative advantage
How does globalization increase revenue potential for businesses?
Access to new markets
Match the strategy for managing global operations with its description:
Glocalization ↔️ Tailoring products to local preferences
Centralized Production ↔️ Concentrating manufacturing in few locations
Distributed Value Chain ↔️ Locating business functions globally
Globalization has led to increased interconnectedness and interdependence
Globalization increases market access
Global competition leads to greater price pressures and market saturation
Small businesses often struggle to compete with larger multinationals
Unilever leveraged its diverse portfolio to cater to varying consumer tastes
What is one benefit of globalization for national economies?
Increased trade and investment
What is one environmental concern associated with globalization?
Greater environmental degradation
Centralized production aims to achieve economies of scale.