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Globalization Questionnaire

In: Business and Management

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Globalization Questionnaire
University of Phoenix
MGT/448

Globalization Questionnaire
Globalization is a theory established to bridge cultural, geographical, economical gaps to facilitate trade. Globalization is interconnectedness, interaction, and connectivity of world markets, economies, and businesses (Hill 2013).
Trade theories that support globalization: 1. Free Trade: removal of restrictions on trade, resulting in free, unhindered flow of goods. 2. Mercantilism: Insists the amount of silver and gold are the benchmarks of a country’s wealth. 3. New Trade theory: a set of models that boost profits. 4. Product Life Cycle theory: in the early stages of life a product is made using resources from the area of origin.
Major drivers of globalization
1. Technological drivers: Technological advancements connected the world through improved transportation particularly computers, and telecommunications and the internet. 2. Cost drivers: Labor, raw material. Costs vary from country to country. Used to lower production cost to increase returns. 3. Political drivers: Political stability can boost investor and importer confidence. Liberalized trade rules, lowered tariff, direct foreign investment, and privatization.
Four affects of globalization
Power of WTO, World Bank
Power of WTO, World Bank, etc. are to regulate trade: decide tariffs, provide capital, help out countries by providing loans.
Technological progress
A huge flare up of competition, indirectly leads to corporations using latest technology, and training workers to use that technology.
Improvement in Trade
A large number of countries can participate in trade and benefit from the revenue and cash inflow that it brings.
Impact of Multinationals
This brings huge cash inflow to the host economy, but wages and work conditions remain horrid. The place where the business…...

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