REVIEW QUESTIONS FOR GLOBALIZATION, NATIONAL DIFFERENCE IN POLITICAL ECONOMY, AND DIFFERENCES IN CULTURE
1. Describe globalization (http://en.wikipedia.org/wiki/Globalization) a. In general: is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. Advances in transportation and telecommunications infrastructure, including the rise of the telegraph and its posterity the Internet, are major factors in globalization, generating further interdependence of economic and cultural activities. b. History: Though several scholars place the origins of globalization in modern times, others trace its history long before the European age of discovery and voyages to the New World. Some even trace the origins to the third millennium BCE. In the late 19th century and early 20th century, the connectedness of the world's economies and cultures grew very quickly. c. Measurements: The term globalization has been in increasing use since the mid-1980s and especially since the mid-1990s. In 2000, the International Monetary Fund (IMF) identified four basic aspects of globalization: trade and transactions, capital and investment movements, migration and movement of people and the dissemination of knowledge. Further, environmental challenges such as climate change, cross-boundary water, air pollution, and over-fishing of the ocean are linked with globalization. d. Effects: Globalizing processes affect and are affected by business and work organization, economics, socio-cultural resources, and the natural environment.
2. What is the role of Technological Changes?
a. Microprocessors and Telecommunications: enabled the explosive growth of high-power, low-cost computing, vastly increasing the amount of information that can be processed by individuals and firms. Over the past 30 years, developments in satellite, optical fiber, and wireless technologies, and now the internet, have revolutionized global communications. b. the Internet and World Wide Web: The use has increased from fewer than 1 million in 1990 to 50 million in 1995 and 1.6 billion users in 2009. It has developed into the information backbone of the global economy and is emerging as an equalizer globally. It makes it easier for buyers and sellers to find each other, wherever they may be located and whatever their size. It allows businesses, both small and large, to expand their global presence at a lower cost than ever before. c. Transportation Technology: the most important are the development of the commercial jet aircraft and super-freighters and the introduction of containerization, which simplifies transshipment from one mode of transportation to another. d. Implications for the globalization of Production: transportation costs associated with globalization have declined; dispersion of production to geographically separate locations became more economical. e. Implications for the Globalization of Markets: Low-cost global communication networks such as the World Wide Web are helping to create electronic global marketplaces.
3. What would happen if the U.S. government required that flat panel displays sold in the United States had to also be made in the United States? In balance, would this be a good or a bad thing? We would create more jobs for US citizens, but the cost of the televisions would also rise drastically and citizens wouldn’t be able to afford to buy the products. Therefore, the companies wouldn’t have enough income to pay its employees and would result in layoffs and lost jobs. In balance, this is a bad thing.
4. What does the GE example tell you about the nature of true global business? The General Electric example tells me that the nature of true global businesses is only to make as much money off of the people as humanly possible to do so
5. A decade...