01
Front
What is globalization?
Back
Globalization is the growing connection and interdependence of national economies through cross-border flows of goods, services, investment, technology, data, ideas, and people.
Free Online Flashcard Deck
1 Globalization and the International Business Environment Free Online FlashCards
Study 1 Globalization and the International Business Environment with 12 free online flashcards. Review key terms, definitions, and concepts with this interactive flashcard deck.
12 cards
02
Front
What roles does the WTO play in international trade?
Back
The WTO provides a forum for trade negotiations, administers member trade agreements, monitors trade policies, and handles disputes.
03
Front
How do transport and communication technologies enable global business?
Back
They reduce the cost and difficulty of coordinating distant activities: logistics move physical products, while digital networks enable information exchange and some electronic services.
04
Front
What is a global value chain?
Back
A global value chain is a production process in which different countries contribute inputs or tasks to a finished good or service.
05
Front
How does comparative advantage encourage international trade?
Back
Comparative advantage encourages specialization in goods or services produced at relatively lower opportunity cost, followed by trade for other products.
06
Front
What is an exchange rate?
Back
An exchange rate is the price of one currency in terms of another.
07
Front
What risks can long or concentrated supply chains create?
Back
Long or concentrated supply chains can expose firms to shortages, transport problems, and policy disputes.
08
Front
How can firms strengthen supply-chain resilience?
Back
Firms can diversify suppliers, hold additional inventory, or locate production closer to customers to balance efficiency with resilience.
09
Front
Why is globalization more than international trade?
Back
It includes flows of capital and knowledge and the coordination of business activities across borders, not just international trade.
10
Front
How does the IMF relate to international business?
Back
The IMF promotes international monetary cooperation and monitors economic and financial developments that affect currency and payment conditions.
11
Front
How does the World Bank Group support development?
Back
The World Bank Group supports development with financing, expertise, and programs that can improve infrastructure and economic participation.
12
Front
Where is value created in a global value chain?
Back
A product’s value is created across multiple stages and locations, not only where final assembly occurs.