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IBUS Cheat Sheet Exam #1 2nd Edition.

IBUS Cheat Sheet Exam #1 2nd Edition. - Chapter 1...

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Chapter 1: GLOBALIZATION Opening Case: Globalization of Health Care – save money, send x-rays to India; more people getting surgery in India a lot cheaper there, not everyone has insurance. Globalization – refers to the shift toward a more integrated and interdependent world economy; Underlying factors towards globalization: declining trade barriers and changes in communication, information and transportation technologies Globalization of Markets – refers to the merging of historically distinct and separate national markets into one huge global marketplace. The most global markets are for industrial goods and materials, which are not affected by national differences and serve the world over. Globalization of Products – refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production (such as labor, energy, land, capital) General Agreements of Tariffs and Trade (GATT) – international treaty that committed signatories to lowering barriers to the free flow of goods across national borders and led to the WTO World Trade Organization (WTO) – came from GATT; primarily responsible for policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties signed by WTO member states successful, but critics charge the WTO as being usurping the national sovereignty of individual nation- states. These organizations help manage, regulate, and police the global marketplace; promote the establishment of multinational treaties. International Monetary Fund (IMF) and its sister organization, the World Bank were both created in 1944 by 44 nations that met at Bretton Woods – IMF was created to maintain order in the international monetary system and the World Bank was established to promote economic development. World Bank makes low interest rate loans to cash-strapped nations who wish to make infrastructure investments, where the IMF is seen as the lender of last resort to countries whose economies are in turmoil and currencies are losing value. United Nations – established 10/24/1945 by 51 countries committed to preserving peace through international cooperation and collective security. 4 main purposes: maintain international peace and security; develop friendly relations among nations; to cooperate in solving international problems and promoting respect for human rights; to be a center for harmonizing the actions of nations. UN Charter – international treaty that establishes basic principles of international relations. International Trade – occurs when a firm exports goods or services consumers in another county. Foreign Direct Investment (FDI) – occurs when a firm invests resources in business activities outside its home country.
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