lOMoARcPSD| 47061011
The D270 Comprehensive Midterm Review
Guide
Know this information and you won’t fuck up the midterm
Chapter 1 - Globalization
• Globalization The widening and deepening of interdependent relationships among
people from different nations.
• International Business Any commercial transaction between 2 or more countries
• The Forces Behind the Current Extent of Globalization
1. Increase in and application of technology
Improvements in transportation and communication networks
, lOMoARcPSD| 47061011
2
2. Liberalization of cross-border trade and resource movements 3. Development
of services that support international business activities Banking, transportation,
etc.
4. Growing consumer pressures
Consumer demand for foreign products and on MNC behaviors
5. Increased global competition
Born-global Companies companies that start out with a global
focus because of their founders’ international experience
6. Changing political situations and government policies
7. Expanded cross-national cooperation
WTO, IMF, NAFTA, EU, treaties, and agreements Positive
aspects of globalization (as decided by the class):
1. Specialization leads to lower costs and higher availability
2. Strengthening of political relationships
3. Spreading of culture
4. Lower costs/innovation
5. Sustainability
• Negative aspects of globalization (as decided by the class):
1. Higher income inequality
2. Poor labor standards/exploitation
3. Losing employment to outsourcing
4. Lower quality
5. Security issues
6. Environmental stress
• Three major negatives of globalization
1. Threats to national sovereignty
Sovereignty a country’s freedom to “act locally” and without
externally imposed restrictions
Small countries feel threatened and overly dependent
Cultural homogeneity threatens uniqueness
2. Environmental Stress
Depletion of resources/pollution/climate change
3. Growing income inequality and stress
Greater division between rich and poor
Threat of job loss leads to personal stress Factors affecting
globalization
o Size of countries smaller countries tend to be more globalized than larger ones,
mainly because their smaller land masses and populations permit a lower variety of
production. o Per capita incomes Countries with higher per capita incomes tend to
be more globalized than those with lower ones because their citizens can better afford
foreign products, travel, and communications. o Variance among globalization aspects
The D270 Comprehensive Midterm Review
Guide
Know this information and you won’t fuck up the midterm
Chapter 1 - Globalization
• Globalization The widening and deepening of interdependent relationships among
people from different nations.
• International Business Any commercial transaction between 2 or more countries
• The Forces Behind the Current Extent of Globalization
1. Increase in and application of technology
Improvements in transportation and communication networks
, lOMoARcPSD| 47061011
2
2. Liberalization of cross-border trade and resource movements 3. Development
of services that support international business activities Banking, transportation,
etc.
4. Growing consumer pressures
Consumer demand for foreign products and on MNC behaviors
5. Increased global competition
Born-global Companies companies that start out with a global
focus because of their founders’ international experience
6. Changing political situations and government policies
7. Expanded cross-national cooperation
WTO, IMF, NAFTA, EU, treaties, and agreements Positive
aspects of globalization (as decided by the class):
1. Specialization leads to lower costs and higher availability
2. Strengthening of political relationships
3. Spreading of culture
4. Lower costs/innovation
5. Sustainability
• Negative aspects of globalization (as decided by the class):
1. Higher income inequality
2. Poor labor standards/exploitation
3. Losing employment to outsourcing
4. Lower quality
5. Security issues
6. Environmental stress
• Three major negatives of globalization
1. Threats to national sovereignty
Sovereignty a country’s freedom to “act locally” and without
externally imposed restrictions
Small countries feel threatened and overly dependent
Cultural homogeneity threatens uniqueness
2. Environmental Stress
Depletion of resources/pollution/climate change
3. Growing income inequality and stress
Greater division between rich and poor
Threat of job loss leads to personal stress Factors affecting
globalization
o Size of countries smaller countries tend to be more globalized than larger ones,
mainly because their smaller land masses and populations permit a lower variety of
production. o Per capita incomes Countries with higher per capita incomes tend to
be more globalized than those with lower ones because their citizens can better afford
foreign products, travel, and communications. o Variance among globalization aspects
