Study Guide Filled out

Study Guide Filled out - MKT 310 Fall 2010 International...

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MKT 310 – Fall 2010 International Business Midterm Exam 1 – Study Guide The study guide below lists the book sections as well as slides in the modules that will be featured in the exam questions. Therefore, please focus your studying on these sections. Also, please remember that there will be questions from the in-class lectures. Book Chapter 1: Globalization What Is Globalization? o Globalization refers to the shift toward a more integrated and interdependent world economy. The Globalization of Markets and Production o Globalization of Markets: refers to the merging of historically distinct and separate national markets into one huge marketplace o Globalization of Production: refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality factors of production (such as labor, energy, land, and capital). The Emergence of Global Institutions o As markets globalize and an increasing proportion of business activity transcends national borders, institutions are needed to help manage, regulate, and police the global marketplace, and to promote the establishment of multinational treaties to govern the global business system General Agreement on Tariffs and Trade (GATT): International treaty that committed signatories to lowering barriers to the free flow of goods across national borders; led to the WTO World Trade Organization: the organization that succeeded the GATT and now acts to police the world trading system International Monetary Fund: International institution set up to maintain order in the international monetary system World Bank: International organization set up to promote economic development, primarily by offering low-interest loans to cash-strapped governments and poorer nations
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United Nations: an international organization make up of 191 countries charged with keeping international peace, developing cooperation between nations, and promoting human rights Drivers of Globalization o Two macro factors underlie the trend toward greater globalization: Decline in barriers to the free flow of goods, services, and capital that has occurred since the end of World War II International trade: occurs when a firm exports goods or services to consumers in another country Foreign Direct Investment (FDI): occurs when a firm invests resources in business activities outside its home country Technological change, particularly the dramatic developments in recent years in communication, information processing, and transportation technologies Microprocessors and telecommunications o Moore’s Law: the premise that the power of microprocessor technology doubles and its cost of production drops in half every 18 months The Internet and World Wide Web Transportation Technology Implications for the globalization of production: o Example: internet allows hospitals in Chicago to send MRI scans to India for analysis Implications for the globalization of markets:
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This note was uploaded on 10/17/2011 for the course ECON 101 taught by Professor Thompson during the Spring '11 term at Michigan State University.

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Study Guide Filled out - MKT 310 Fall 2010 International...

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