...Financial Globalization and Risk True/False 1) BRICs is a term used in international finance to represent assets that are considered to be inexpensive and sturdy, but fundamentally unsound and and incapable of coping with the upheavals now apparent in international financial markets. Answer: FALSE Diff: 1 Topic: 1.1 Financial Globalization and Risk Skill: Recognition 2) Multinational enterprises (MNEs) are firms, both for profit companies and not-for-profit organizations, that have operations in more than one country, and conduct their business through foreign subsidiaries, branches, or joint ventures with host country firms. Answer: TRUE Diff: 1 Topic: 1.1 Financial Globalization and Risk Skill: Recognition 3) Ownership, control, and governance changes radically across the world. The publicly traded company is not the dominant global business organization—the privately held or family-owned business is the prevalent structure—and their goals and measures of performance differ dramatically. Answer: TRUE Diff: 2 Topic: 1.1 Financial Globalization and Risk Skill: Recognition 1.2 The Global Financial Marketplace Multiple Choice 1) A well-established, large U.S.-based MNE will probably NOT be able to overcome which of the following obstacles to maximizing firm value? A) an open market place B) high quality strategic management C) access to capital D) none of the above Answer: D Diff: 2 Topic: 1.2 The Global Financial Marketplace Skill:...
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...Globalization Argumentative Paper PHL/320 Monday, August 31, 2015 Globalization Argumentative Paper Globalization is the process of integrating products and ideas internationally benefiting small and large businesses. With modern technology and the expansion of the Internet, more businesses have the ability to compete in an international market that was once only an option for large established firms. (1 Premise)The international marketplace opens the door for lower cost labor with the expansion of product lines to customers all over the world. (2 Premise) Globalization can also promote the U.S. economy (2 Conclusion) as revenues earned internationally often return to the U.S. to be invested domestically. However, globalization is not well accepted by all. (3 Premise) The trade deficit is a concern for some, (3 Conclusion) as the deficit increases; this can directly affect the strength of the U.S. dollar. (1 Conclusion) All in all globalization continues to drive businesses to reinvent themselves to compete in an aggressive market. (1 Premise) The internet has opened the door to all businesses to communicate, monitor, and manage a business in foreign countries. According to an article in the Houston Chronicle, “The Internet revolutionized the business arena because it created a whole new virtual marketplace that expands beyond physical and geographical boundaries” (Kokemuller). (2 Premise) The technologies available make operating in an open market...
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...Multiple Choice and True/ False Questions 1.1 The Global Financial Marketplace 1) Which of the following firms are NOT considered to be multinational enterprises (MNEs) even if they have operations in more than one country? A) for-profit companies B) not-for-profit organizations C) non-government organizations (NGOs) D) all of the above may be considered MNEs Answer: D Diff: 1 Topic: 1.1 The Global Financial Marketplace Skill: Recognition 2) "BRIC" is a term coined in 2001 to refer to a group of countries at about the same stage of advanced economic development. The BRIC countries are ________. A) Belgium, Romania, Italy, and Canada B) Brazil, Russia, India, and China C) Britain, Romania, Israel, and Colombia D) Brazil, Russia, Italy, and Chile Answer: B Diff: 1 Topic: 1.1 The Global Financial Marketplace Skill: Recognition 3) According to the authors, which of the following groups or securities are at the "heart" to the global capital markets? A) debt securities issued by governments B) bank loans and corporate bons C) equity securities D) derivative securities Answer: A Diff: 1 Topic: 1.1 The Global Financial Marketplace Skill: Recognition 4) ________ are the largest markets in the world. A) United States equity markets B) European debt markets C) Global currency markets D) Chinese export markets Answer: C Diff: 1 Topic: 1.1 The Global Financial Marketplace Skill: Recognition 5) Domestic currencies of one country on deposit...
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...Multiple Choice and True/ False Questions 1.1 The Global Financial Marketplace 1) Which of the following firms are NOT considered to be multinational enterprises (MNEs) even if they have operations in more than one country? A) for-profit companies B) not-for-profit organizations C) non-government organizations (NGOs) D) all of the above may be considered MNEs Answer: D Diff: 1 Topic: 1.1 The Global Financial Marketplace Skill: Recognition 2) "BRIC" is a term coined in 2001 to refer to a group of countries at about the same stage of advanced economic development. The BRIC countries are ________. A) Belgium, Romania, Italy, and Canada B) Brazil, Russia, India, and China C) Britain, Romania, Israel, and Colombia D) Brazil, Russia, Italy, and Chile Answer: B Diff: 1 Topic: 1.1 The Global Financial Marketplace Skill: Recognition 3) According to the authors, which of the following groups or securities are at the "heart" to the global capital markets? A) debt securities issued by governments B) bank loans and corporate bons C) equity securities D) derivative securities Answer: A Diff: 1 Topic: 1.1 The Global Financial Marketplace Skill: Recognition 4) ________ are the largest markets in the world. A) United States equity markets B) European debt markets C) Global currency markets D) Chinese export markets Answer: C Diff: 1 Topic: 1.1 The Global Financial Marketplace Skill: Recognition 5) Domestic currencies of one country on...
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...[Author] Table of Contents Introduction 3 Vizio’s Background 3 Effects of Globalization 3 Recommendations 5 Conclusion 6 Work Cited 7 Introduction The objective of this case study is to analyze the success of Vizio and discuss how globalization has affected the manufacturing of flat-panel TVs. What effects do companies that globalize their production have on their competitors and other participants in the marketplace, and what role can the government take to make the situation the best for all the stakeholders? These questions will be answered with focus on strategies that enterprises can implement to be successful and grown in the future marketplace. I have chosen this case study because I believe globalization is one of the most important factors to evaluate when you are leading a business in today’s economy. Vizio’s Background Vizio is a California based Flat-Panel TV producer. It was founded in 2002, and is most known for their affordable Flat-Panel TVs. company became the largest provider in its field in the United States with a 21.7 % market share in 2009. Anna Phillips, (2012), International Business: Strategy & Structure Effects of Globalization Globalization is defined in the textbook as “The shift toward a more integrated and interdependent world economy. Globalization has several facets, including the globalization of markets and the globalization of production.” . Anna Phillips, (2012), International Business: Strategy &...
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...Globalization What Is Globalization? The world is moving away from self-contained national economies toward an interdependent, integrated global economic system. Globalization refers to the shift toward a more integrated and interdependent world economy. Globalization has two facets: 1) the globalization of markets 2) the globalization of production 1) The Globalization Of Markets: The globalization of markets refers to the merging of historically distinct and separate national markets into one huge global marketplace. Ex: In many industries, it is no longer meaningful to talk about the “German market” or the “American market”. Instead, there is only the global market. Falling trade barriers make it easier to sell internationally. The tastes and preferences of consumers are converging on some global norm. Firms help create the global market by offering the same basic products worldwide. 2) The Globalization Of Production: The 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 of factors of production like land, labor, and capital Companies compete more effectively by lowering their overall cost structure or improving the quality or functionality of their product offering. The Emergence Of Global Institutions : Institutions are needed to: * help manage, regulate, and police the global marketplace * promote the establishment...
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...Global Finance Environment This paper will analyze the drivers and consequences of globalization, describe the risks associated with global investing, and explain the importance of cultural sensitivity and ethics in global finance. However, there first must be an understanding of what globalization entails. Globalization is the expansion of companies and entities into the international market; working, manufacturing, and selling or buying from two or more countries. Companies that sell to other countries or buy from other countries are not a good example, but those that have investment, manufacturing, or other divisions of the company in another country is definitely globalization. Drivers of Globalization Many drivers of globalization affect an organization financially. Improvements in communication and transportation such as internet, emails, mobile phones, formation of complex globalized economy, people must understand all aspects of global operations, particularly the international finance function along with the financial risks inherent in the global marketplace. By analyzing the major drivers and consequences of globalization, people are able to understand the cultural aspects of global trading as well as being able to identify and manage foreign exchange risks. Global Finance Environment This paper will analyze the drivers and consequences of globalization, describe the risks associated with global investing, and explain the importance of cultural sensitivity and...
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...Globalization What Is Globalization? * The world is moving away from self-contained national economies toward an interdependent, integrated global economic system * Globalization refers to the shift toward a more integrated and interdependent world economy What Is The Globalization of Markets? * Historically distinct and separate national markets are merging * It no longer makes sense to talk about the “German market” or the “American market” * Instead, there is the “global market” * falling trade barriers make it easier to sell globally * consumers’ tastes and preferences are converging on some global norm * firms promote the trend by offering the same basic products worldwide What Is The Globalization of Production? * Firms source goods and services from locations around the globe to capitalize on national differences in the cost and quality of factors of production like land, labor, and capital * Companies can * lower their overall cost structure * improve the quality or functionality of their product offering * Firms source goods and services from locations around the globe to capitalize on national differences in the cost and quality of factors of production like land, labor, and capital * Companies can * lower their overall cost structure * improve the quality or functionality of their product offering Why Do We Need Global Institutions? * Institutions * help manage, regulate, and police...
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...Globalization Questionnaire MTG/448 January 31, 2011 Globalization Questionnaire Globalization Globalization is a shift toward a more interdependent and integrated world economy (Hill, 2009). Other way of looking at globalization is one huge global market that deals with many nations in a way that creates a form of global economy. Another important part of globalization is the drives of globalization markets, production, barriers, and technology. Drives of Globalization First is the globalization of markets. This consists of the integration of national markets into one large marketplace and falling barriers to cross-border trade. For example, some firms who use the national markets are Coca-Cola whom provides soft drink, Honda who sells vehicles in many nations, and international media outlets such as Sony PlayStation that provides video games over the nations. Second is globalization of production that refers to the supply of goods and services from around the globe. For example firms like Apple use parts made in Japan, or Vizio the television company whom components are manufacture in South Korea, China, and assembly in Mexico, and Gerber baby food was originate in Michigan merged with Novartis, which is in Switzerland. Third of the drives of globalization is declining trade and investment barriers. In this case the decline in barriers is to free flow of goods and services that occurred since the end of World War II. For example, international...
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...OUTLINE OF CHAPTER 1: GLOBALIZATION Opening Case: Flat Panel Televisions and the Global Economy Introduction What is Globalization? The Globalization of Markets The Globalization of Production Country Focus: Outsourcing American Healthcare The Emergence of Global Institutions Drivers of Globalization Declining Trade and Investment Barriers The Role of Technological Change The Changing Demographics of the Global Economy The Changing World Output and World Trade Picture The Changing Foreign Direct Investment Picture The Changing Nature of the Multinational Enterprise The Changing World Order The Global Economy of the Twenty-First Century Country Focus: India’s Software Sector Management Focus: China’s Hisense-An Emerging Multinational The Globalization Debate Anti-globalization Protests, Globalization, Jobs, and Income Globalization, Labor Policies, and the Environment Globalization and National Sovereignty Globalization and the World’s Poor Country Focus: Protesting Globalization in France Managing in the Global Marketplace Chapter Summary Critical Thinking and Discussion Questions Closing Case: IKEA—The Global Retailer CLASSROOM DISCUSSION POINT Ask students to describe how international business has affected them in their day so far. Ash them about who made the clothes they’re wearing, what type of food they ate for breakfast or lunch (muesli cereal, sushi, Italian-style...
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...overall affect of this globalization has yet to be realized, but in the short term for the middle and lower class echelon of thee fore mentioned economies, globalization has been devastating. In the first few pages of Chapter 1 “International Business (Competing in the Global Marketplace)” an example is given referencing the necessity for international healthcare due to the rising cost and inaccessibility to quality healthcare in the United States. The most interesting part of this example to me was the following statement. “Some insurance companies are starting to experiment with payment for foreign treatment at internationally accredited hospitals”. (Hill, 2011) Initially I found this statement comforting in the fact that insurance companies were thinking outside of a microeconomic healthcare model in order to better serve the people that they insure. On a larger scale this statement is disconcerting. It is disconcerting in the fact that everything associated in our healthcare system from equipment supply to the education and utilization of our medical professionals is either being mismanaged or financial gouged by government and the private market. As a result of the gauging, like any other business cheaper goods and services are being sought out elsewhere. It is astounding that it is cheaper to fly to another country and have a major surgical procedure performed at a quarter of the cost then it would be if performed in the United States. “Globalization refers to the shift...
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...Racheal Hunt HIS 122 Mr. Raby September 6, 2012 Globalization of the Twentieth Century What is globalization? According to our text book, globalization is “a term referring to a trend by which peoples and nations has become more interdependent” (Spielvogel 679). When using the term of globalization most people are talking about our global economy and global culture. Over the last forty years new technologies have changed the way we communicate. Not only can we communicate with friends and family around the world with the touch of a button but we can use the same technology to buy, sell and distribute almost anything to almost anywhere in the world. This has not only changed our bottom line of profits but has also changed the mindset of how we view the world and how we do business and communicate with others. In this paper I intend to describe the main characteristics of globalization of the Twentieth century and discuss some of the many elements that have led us to this point in history. There are many characteristics of globalization. Arvind Kumar, writer of the article “What are the Characteristics of Globalization” says that there are three distinct characteristics of globalization. The first is liberalization which is the, “freedom to start industry, trade or commerce in his country or abroad (Kumar).” The second characteristic is free trade. Kumar explains that, “Free trade is the absence of excessive government control over trade (Kumar).” He goes...
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...Globalization Effects on Culture, Business Ethics, and Leadership: A Managerial View Introduction The world’s economy has developed and changed dramatically throughout the years and continues to do so. We are quickly moving away from a world where each country’s economy is isolated and more towards a world with an interdependent global economic system. This interdependent global economic system is commonly referred to as globalization (Saee 2005). The book written by John Saee, Managing Organizations in a Global Economy: An Intercultural Perspective, suggests that the growth of global trade, cross-border investments, mass migration, large-scale tourism, and much more has turned the world into more of a “global village” (Saee 2005). While globalization has effected nearly every aspect of human civilization, it has created some very serious concerns for managers whose organizations and firms already are or are planning to be involved in business transactions that take place outside of their domestic environment. If companies and corporations want to be successful in today’s economy, then it is important for managers to have a thorough knowledge and understanding of different types of cultures, business ethics, and ways of leadership, and the implications that these differences will have on their businesses. In this paper, we will discuss the effects that globalization has had on managers with respect to culture, business ethics, and leadership. Culture Globalization...
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...Globalization MGT/448 Globalization The world today is moving toward an interdependent, integrated global economy, and away from a self-contained national economy. The term “globalization” alludes to the change toward a more combined and interdependent world economy. The trend toward a more combined and interdependent world economy is known as economic integration, economic interdependency, globalization, and internationalization (Hill, 2009). Institutions remain required to help assist, govern, and police global markets and promote the establishment of multinational treaties to assist in governing the global business system. Some of the institutions developed to help assist globalization are the General Agreement on Tariffs and Trade (GATT), the World Trade organization (WTO), the International Money Fund (IMF), the World Bank, and the United Nations (Hill, 2009). The globalization of world economies remains affected by three major factors, the reduction of trade barriers, the removal of restrictions to foreign direct investments, and the changes in technology available to assist in globalization. After World War II the removal of trade barriers allowed the free flow of goods, services, and capital between nations. The formation of GATT helped to lower trade barriers among member nations, which numbers 150 nations. The formation of the WTO is to police the world trading system and make sure that nation states hold true to the rules laid down in trade treaties...
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...Globalization Aisha Savage May 29, 2014 MGT/448 AHMER ALLAUDDIN A lot more businesses are shifting toward becoming a global entity after realizing the benefits it provides. The bigger the range the business can expand to, the greater the success the business will achieve to sell its products or services to. By offering a product overseas the business can offer different types of discounted prices for their services. This is turn will save the business an abundance of revenue. In every country a product or service is used daily without a second thought by the consumer as were that product or service originated from. Globalization is the norm and is expected by a wide varied of consumers. Globalization is a process of interaction or integration among people, businesses, and governments of different countries or nations. Globalization is a driven process developed with international trade and investment and aided by information technology. Globalization has effects on the environment, culture, political systems, on economic development. The two types of globalization are globalization of markets and globalization of products. Globalization of markets are merging of historically distinct and separate national markets into one huge marketplace. Globalization of products refers to the sourcing and out sourcing of goods and services from around the world to take advantages of the different product markets. Some of the international trade theories that support globalization...
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