WGU C211 - Global Economics for Managers, Brian Final Exam Questions and answers, rated A+ 2024 | 44 Pages

3 views on globalization Globalization is when you do business internationally New, Evolutionary, and Pendulum "New" view on globalization A force sweeping through the world in recent times. Which view claims that the phenomenon of globalization was initially driven by the desire of Western economies to exploit their power through multinational enterprises? "Evolutionary" view on globalization A long-run historical evolution since the dawn of human history "Pendulum" view on globalization One that swings from one extreme to another from time to time. Most popular Foreign Direct Investment (FDI) Foreign direct investments (FDI) are investments made by one company into another company that is located in another country. 3 Different political views on FDI Radical - radical view is hostile to FDI Free market - free market view calls for minimum or unrestricted government restriction in FDI. Leads to a win-win situation for both home and host countries. Pragmatic nationalism - most countries practice pragmatic nationalism, weighing the benefits and costs of FDI and only using it when benefits outweigh the costs. What are the benefits to a country receiving Foreign Direct Investment? Capital Inflow Technology SpilloverAdvanced Management Know-How Job creation What costs exist in a country when they receive Foreign Direct Investment? 1. Loss of Sovereignty (power), 2. Adverse effects on competition (drives domestic firms out of business) 3. Capital outflow How do resources and capabilities influence the competitive dynamics of a business? A firm's resources and capabilities must create value compared to its competition. A firms resources need to bring: