hi - Study Guide test #1 Globalization- refers to the shift...

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Study Guide test #1 Globalization - refers to the shift toward a more integrated and independent world economy. Globalization has several facets including the globalization of markets and the globalization of production. Changes in income and wealth distribution due to globalization- critics of globalization argue that the falling trade barriers allow firms to move manufacturing activities to countries where wage rates are much lower. Research also suggest the there is growing income inequality. The gap between the poorest and richest segments in the OCED study of the 20 richest countries has widened. Health Care Industry: Radiology, there are much cheaper ways to get healthcare now including having MRI pictures outsourced to various companies in India These are all trained physicians and they do the same thing someone in the United States would do. Patients also travel international to get medical treatments, in 2004 some 170,00 foreigners visited India for medical treatments, expected to grow 15% Comparison between India and China- for the past 2 decades China has been growing at 9.5% a year and India at 6%. China and India graduate a combined half a million engineers and scientists a year vs. 60,000 in the U.S. Cell phone subscribers in China is at 350 million, expected to increase to 600 million by 2009. India is on the same trajectory as China since 2000. Future hold o Still has growth potential o One child policy will eventually increase demands to provide for a graying population o India has more long-term growth potential with nearly 500 million people under the age of 19 o China is surprisingly weak in innovation India Advantages o India has western legal institutions, a modern stock market, private banjs and corporations. Far more capital efficient. Why is international business different from domestic business? International Business is very different from domestic business because there are various factors that need to be taken into account including, Legal, Culture, and Political. Four Main reasons firms go abroad- Technology, Supranational Institutions, Reduction in Trade Barriers and FDI restrictions. Foreign Direct Investment- Developing countries see FDI as means to gain technology transfer and increase employment
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Decreased equity restrictions Strengthening local institutions to attract FDI Supranational Institutions Help manage, regulate and police the global marketplace Include the GATT, WTO, IMF, World Bank, United Nations Trade Barriers (what, and examples)- any government policy or regulation that restricts international trade. These can include import duties, import licenses, export licenses, import quotes. Tariffs and Subsides are also considered trade barriers GATT- General Agreement on Tariffs and Trade was the successor to the WTO. Created at the Berenton Woods conference after WW2 as part of a larger plan for economic recovery. Trends/Changes in the Home Country of the World’s Multinational Enterprises since 1973
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This note was uploaded on 10/20/2010 for the course IBUS 160 taught by Professor Srividyajandhyala during the Spring '08 term at GWU.

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hi - Study Guide test #1 Globalization- refers to the shift...

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