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Question		Answer
Forces driving globalization start learning		cost factors, market factors, technology factors, global business cycle
cost factors start learning		looking for cheaper labour and manufacturing costs, outsource to other countries, which get an inward investment, jobs and technology
market factors start learning		domestic markets become saturated, switch to emerging markets, establish a global presence due to global clients, it is dangerous to stand aside
technology factors start learning		the Internet makes comparison of supply chain costs and of final price, software tools on company intrantes allow managers to access information anywhere, anytime
global business cycle start learning		it is now international, in every turn of the cycle, the pace of globalization is likely to increase
recovery start learning		upswing
growth start learning		expansion, boom
recession start learning		contraction, downturn
depression start learning		slump
Company strategy in the face of globalization start learning		Import/Export, Outsourcing, Foreign direct investment
Import/Export start learning		lowest risk, lowest profit, franchising, foreign licensing
Outsourcing start learning		deeper level of involvement with a long-term contractual agreement
Foreign direct investment start learning		highest risk, most control and shows the most commitment to the global market, buy property and businesses in the foreign nation, it includes: acquisition, joint ventures, strategic alliances
Political strategy in the face of globalization start learning		being in favour of market forces and deregulation, being in favour of subsidies and protectionism
being in favour of market forces and deregulation start learning		labour market more flexible, lower taxes, cut red tape, encourage free trade
being in favour of subsidies and protectionism start learning		protect job security, social benefits, high taxes in order to pay for social programmes, protect national business and jobs, tariffs and quotas on imports
Measuring and analysing global trade start learning		balance of trade, balance of payments, exchange rates
balance of trade start learning		imports minus exports, when import is higher then export we have trade surplus, opposite trade deficit
balance of payments start learning		balance of trade plus services and investments
exchange rates start learning		currencies fluctuate against each other
looser regulations start learning		cancel out quotas and tariffs
human right abuses start learning		child labour
requirements start learning		for
back-office services start learning		accounts
front-line services start learning		customer helplines
control start learning		over
world trade organization start learning		works towards reducing tariffs and quotas, mediates in trade disputes
international monetary found start learning		makes short-term loans
World Bank start learning		lends money to developing countries
competitive adventage start learning		competitive edge

Globalization and economic policy

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