D270 Exam Review Questions with Verified
Correct Answers
Globalization
- The processing of broadening interdependent people who are divided by boarders.
- reduction of borders on tech, goods and services
How do we track globalization?
- Global production
- restrictions on imports
- global trade
- forgien ownership
What are 7 factors interlaying globalization *
- rise in tech
- more cross-border trade
- development of ib services
- growing consumer preferences
- increase in global competition
- changes in political or gov policies
- expansion of cross-national cooperation
3 main driving factors of globalization
- globalization has been growing sporadically
- globalization is less pervasive than thought
- globalization has Econ and non-Econ dimensions
,3 problems with globalization and definitions
- threats to national sovereignty
—Globalization can reduce autonomy and control countries over their own affairs. Weaker
ones that depend on larger/stronger ones
- Greece, Amazon
- Environmental stress
—Globalization can increase the consumption and depletion of natural resources and the
emissions and pollution of greenhouse gases.
Ex - China, Chevron
- Growing income inequality and personal stress
— Globalization creates winners and losers and increases the gap between the rich and poor
Why do firms go international and definitions
- Increase sales
— pursuing international sales usually increases potential sales/profits. Ex: Apple, bad news
tho gov employees can't own in china
-Expand resources
— international locations may give companies lower costs to new or better products and
additional knowledge. Ex: IKEA gain global control to gain cheaper products
- Reduce risk
— international companies may reduce risk by smoothing sales and profits and supplies
,preventing competitors from gaining advantage. Ex: Netflix a company who has low risk and
can profit from new clients
Benefits of Globalization
- better standards of living
— china and Vietnam
- Buisness efficiency
— cheaper labor/materials
- consumer advantages
— lower prices and greater variety of goods
- job creation
— in developing countries cheap labor jobs r created, in developed high level white collar
jobs r created. And improved access to education.
What is temu known for? And how did they grow so fast?
1.
Selling cheap goods from china
Gamifying online shopping
Prioritizing market share>revenue
2.
Spent a ton on advertising
Long shipping times vs Amazon who is quick and expensive
Combined factories and retailers into one
, Back by a huge company who can afford the loss on goods
3. The results
Cheap prices around the board
E-commerce ads have rose
Globalization negative effects
Child labor
Worker exploitation
Job losses in developed nations
Income inequality
Offshoring good
- Cheaper costs
- sell more in home nation
- moving simple production boosts home productivity
- GE: was successful in offshoring simple productions and increase revenue
Offshoring bad
- exploits another country
- lowers cost don't equal lower prices
- loss of control over producer
- loss of jobs in home nation
- challenges with low wages in home nation
- risk of losing high value tech due to IP
Modes of IB
Correct Answers
Globalization
- The processing of broadening interdependent people who are divided by boarders.
- reduction of borders on tech, goods and services
How do we track globalization?
- Global production
- restrictions on imports
- global trade
- forgien ownership
What are 7 factors interlaying globalization *
- rise in tech
- more cross-border trade
- development of ib services
- growing consumer preferences
- increase in global competition
- changes in political or gov policies
- expansion of cross-national cooperation
3 main driving factors of globalization
- globalization has been growing sporadically
- globalization is less pervasive than thought
- globalization has Econ and non-Econ dimensions
,3 problems with globalization and definitions
- threats to national sovereignty
—Globalization can reduce autonomy and control countries over their own affairs. Weaker
ones that depend on larger/stronger ones
- Greece, Amazon
- Environmental stress
—Globalization can increase the consumption and depletion of natural resources and the
emissions and pollution of greenhouse gases.
Ex - China, Chevron
- Growing income inequality and personal stress
— Globalization creates winners and losers and increases the gap between the rich and poor
Why do firms go international and definitions
- Increase sales
— pursuing international sales usually increases potential sales/profits. Ex: Apple, bad news
tho gov employees can't own in china
-Expand resources
— international locations may give companies lower costs to new or better products and
additional knowledge. Ex: IKEA gain global control to gain cheaper products
- Reduce risk
— international companies may reduce risk by smoothing sales and profits and supplies
,preventing competitors from gaining advantage. Ex: Netflix a company who has low risk and
can profit from new clients
Benefits of Globalization
- better standards of living
— china and Vietnam
- Buisness efficiency
— cheaper labor/materials
- consumer advantages
— lower prices and greater variety of goods
- job creation
— in developing countries cheap labor jobs r created, in developed high level white collar
jobs r created. And improved access to education.
What is temu known for? And how did they grow so fast?
1.
Selling cheap goods from china
Gamifying online shopping
Prioritizing market share>revenue
2.
Spent a ton on advertising
Long shipping times vs Amazon who is quick and expensive
Combined factories and retailers into one
, Back by a huge company who can afford the loss on goods
3. The results
Cheap prices around the board
E-commerce ads have rose
Globalization negative effects
Child labor
Worker exploitation
Job losses in developed nations
Income inequality
Offshoring good
- Cheaper costs
- sell more in home nation
- moving simple production boosts home productivity
- GE: was successful in offshoring simple productions and increase revenue
Offshoring bad
- exploits another country
- lowers cost don't equal lower prices
- loss of control over producer
- loss of jobs in home nation
- challenges with low wages in home nation
- risk of losing high value tech due to IP
Modes of IB
