, WGU – FVC1
Global Business Study Guide
Competency 3004.1.1: The Rise of Globalization (Chapter 1)
1. What are the characteristics of globalization?
a) Define globalization – The social economic process of eliminating trade, investment,
information technology and cultural and political barriers across countries, which in
turn can lead to increased economic growth and geopolitical integration and
interdependence among nations of the world.
b) Describe the Characteristics of globalization – The reform process of eliminating
trade, investment, cultural, IT political barriers across countries. Promote private
enterprise. Support free market pricing. Promote transparency, disclosure, and rule
of law. Eliminate barriers of free movement of goods, services, capital and
technology,
2. How do major international institutions facilitate globalization?
a) Explain how the International Monetary Fund (IMF) functions (what does the IMF
do). IMF oversees international monetary system, promote exchange rate stability
and lend foreign exchange when needed. IMF also given forum for corporation on
international monetary problems, facilities sustainable growth on international
trade.
b) Explain how World Bank functions (what does the World Bank do) Include
descriptions of the following in your answer.
i) International Bank for Reconstruction and Development (IBRD)-Supports
reconstruction and restructuring of member countries using funds in
international capital markets
ii) International Development Association (IDA) – Provides long-term low-
interest social sector and infrastructure loans to the poorest members using
foreign aid funds provided by the rich nation members ( schools and
hospitals/roads, airports )
iii) International Finance Corporation (IFC): - Provides loans and takes equity
positions in private companies of developing countries and works toward
developing CAPITAL MARKETS in those economies.
iv) Multilateral Investment Guarantee Agency (MIGA) - Provide political risk
coverage for private companies of developing countries and work toward
developing capital markets in those economy
v) International Center for the Settlement of Disputes (ICSID) – Works on issues
related to foreign investment disputes
c) Explain how the World Trade Organization (WTO) functions (what does the WTO do)
focuses on lowering/removing trade barriers to encourage trade and globalization.
3. Why is it important for political leaders and institutions to be transparent in
responding to global competition?
1
, WGU – FVC1
1) Describe what roles successful institutions play (there are three important roles).
Successful institution play three important roles: They channel information about
market conditions, goods, services and participates; they define property rights
contracts, determining who gets what and when and they promote competition and
innovation in markets. The World Bank encourages political institutions and leaders
to be transparent and convince their constituents that while globalization does
create “winner” and “losers”, appropriate policies will be in place to retrain and
uplift the downtrodden.
2) What happens if political leaders and institutions are not open about the “winners
and loser” that globalization can create? - the Bank believes that social unrest will
rest, leading to politics instability and ineffective and inconsistent economic policies.
This, in turn, will wreak havoc on markets and the benefits of globalization will be
stalled.
4. What are the reasons for supporting individuals negatively affected by globalization?
1) What are the types of support? Funding and well -designed training
2) Why should support be provided? – lead to better paying jobs and increased
productivity of displaced workers
5. What are key policy measures that make globalization sustainable?
1) Define what is meant by good governance – government action is fully disclosed and
discussed before they are implemented
2) competitive markets – enforced regulations that promote free markets such as anti-
trust laws
3) Explain why property rights are important – who knows what
4) Explain why it is important to have anticorruption policies. – prevent the raising cost,
creating undertraining and thwarting competition and transparency.
6. What are ways that technology bridges the global digital divide?
1) Include types of technology involved, including smart phone technology. It has
become apparent that developing countries are skipping the use of land-line
technology and moving directly to wireless systems, thereby leapfrogging an entire
generation of technology and catching up faster with the developed world.
2) Explain in terms of cost - The developing world missed out on much of the
excitement of the initial web revolution, largely because of its lack of an Internet
infrastructure and the initial high cost of new technologies. Now that access costs
have been decreasing and infrastructure has been expanding,
3) Explain the how technology impacts global businesses. - developing countries may
be poised to leapfrog the industrialized world in the era of smartphone technology.
7. What is the rationale of specific anti-globalization arguments?
2
Global Business Study Guide
Competency 3004.1.1: The Rise of Globalization (Chapter 1)
1. What are the characteristics of globalization?
a) Define globalization – The social economic process of eliminating trade, investment,
information technology and cultural and political barriers across countries, which in
turn can lead to increased economic growth and geopolitical integration and
interdependence among nations of the world.
b) Describe the Characteristics of globalization – The reform process of eliminating
trade, investment, cultural, IT political barriers across countries. Promote private
enterprise. Support free market pricing. Promote transparency, disclosure, and rule
of law. Eliminate barriers of free movement of goods, services, capital and
technology,
2. How do major international institutions facilitate globalization?
a) Explain how the International Monetary Fund (IMF) functions (what does the IMF
do). IMF oversees international monetary system, promote exchange rate stability
and lend foreign exchange when needed. IMF also given forum for corporation on
international monetary problems, facilities sustainable growth on international
trade.
b) Explain how World Bank functions (what does the World Bank do) Include
descriptions of the following in your answer.
i) International Bank for Reconstruction and Development (IBRD)-Supports
reconstruction and restructuring of member countries using funds in
international capital markets
ii) International Development Association (IDA) – Provides long-term low-
interest social sector and infrastructure loans to the poorest members using
foreign aid funds provided by the rich nation members ( schools and
hospitals/roads, airports )
iii) International Finance Corporation (IFC): - Provides loans and takes equity
positions in private companies of developing countries and works toward
developing CAPITAL MARKETS in those economies.
iv) Multilateral Investment Guarantee Agency (MIGA) - Provide political risk
coverage for private companies of developing countries and work toward
developing capital markets in those economy
v) International Center for the Settlement of Disputes (ICSID) – Works on issues
related to foreign investment disputes
c) Explain how the World Trade Organization (WTO) functions (what does the WTO do)
focuses on lowering/removing trade barriers to encourage trade and globalization.
3. Why is it important for political leaders and institutions to be transparent in
responding to global competition?
1
, WGU – FVC1
1) Describe what roles successful institutions play (there are three important roles).
Successful institution play three important roles: They channel information about
market conditions, goods, services and participates; they define property rights
contracts, determining who gets what and when and they promote competition and
innovation in markets. The World Bank encourages political institutions and leaders
to be transparent and convince their constituents that while globalization does
create “winner” and “losers”, appropriate policies will be in place to retrain and
uplift the downtrodden.
2) What happens if political leaders and institutions are not open about the “winners
and loser” that globalization can create? - the Bank believes that social unrest will
rest, leading to politics instability and ineffective and inconsistent economic policies.
This, in turn, will wreak havoc on markets and the benefits of globalization will be
stalled.
4. What are the reasons for supporting individuals negatively affected by globalization?
1) What are the types of support? Funding and well -designed training
2) Why should support be provided? – lead to better paying jobs and increased
productivity of displaced workers
5. What are key policy measures that make globalization sustainable?
1) Define what is meant by good governance – government action is fully disclosed and
discussed before they are implemented
2) competitive markets – enforced regulations that promote free markets such as anti-
trust laws
3) Explain why property rights are important – who knows what
4) Explain why it is important to have anticorruption policies. – prevent the raising cost,
creating undertraining and thwarting competition and transparency.
6. What are ways that technology bridges the global digital divide?
1) Include types of technology involved, including smart phone technology. It has
become apparent that developing countries are skipping the use of land-line
technology and moving directly to wireless systems, thereby leapfrogging an entire
generation of technology and catching up faster with the developed world.
2) Explain in terms of cost - The developing world missed out on much of the
excitement of the initial web revolution, largely because of its lack of an Internet
infrastructure and the initial high cost of new technologies. Now that access costs
have been decreasing and infrastructure has been expanding,
3) Explain the how technology impacts global businesses. - developing countries may
be poised to leapfrog the industrialized world in the era of smartphone technology.
7. What is the rationale of specific anti-globalization arguments?
2
