C211 WGU Study Guide 2024 with Complete Solutions

C211 WGU Study Guide 2024 with Complete Solutions Globalization - Answer- Is the close integration of countries and peoples of the world which has been brought about by the enormous reduction of the cost of transportation and communication, and the breaking down of artificial barriers to the flows of goods, services, capital, knowledge, and (to a lesser extent) people across borders. New view of Globalization - Answer- A new force sweeping through the world in recent times that it is a new phenomenon beginning in the late 20th century, driven by recent technological innovations and a Western ideology focused on exploiting and dominating the world through a Multinational enterprises. Evolutionary view of globalization - Answer- A long run historical evolution since the down of human history. Historians are debating whether globalization started 2,000 or 8,000 years ago. Earliest traces of globalization goes back to the Assyrian, Phoenician, and Roman times. Pendulum view of globalization - Answer- A pendulum that swings from one extreme to another from time to time. Globalization is neither recent or one-directional. Risk management and scenario planning is needed. What is Foreign Direct Investment (FDI)? - Answer- Investment in, controlling and managing value-added activities in other countries. In other words, investment made by a firm or individual in one country into business interest located in another country. Most discussed foreign entrance is MNE. MNE: Multinational Enterprise - Answer- Is a firm that engages in FDI when doing business abroad. FDI sets apart MNEs and non-MNEs. What different political views exists on FDI? - Answer- -in developed economies, backlash against inbound FDI from certain countries is not unusual. Example, in the 1980s, Americans were alarmed by the significant Japanese inroads into the United States. -in some parts of the developing world, tension over foreign ownership can heat up. There were numerous incidents of nationalization and expropriation against MNE assets throughout the developing world. What 4 benefits exist to a country receiving FDI? - Answer- 1. Capital inflow improve the host country balance of payment. More technology, management, and more jobs in their countries. 2. Technology, especially more advanced technology from abroad, can create technology spillovers that benefits domestic firms and industries. Local rivals can learn and imitate such technology resulting in what's called demonstration effect (contagion effect)