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Global Business Study Guide

Competency 3004.1.1: The Rise of Globalization

1. What are the characteristics of globalization?

* openness, accessibility, accountability, connectivity, democracy, and decentralization

2. How do major international institutions facilitate globalization?

* Emergence of three major international organizations and financial institutions, namely, the International Monetary Fund (IMF), the World Bank, and the present World Trade Organization (WTO)

* IMF: global system of exchange rates and international payments that enables countries and their citizens to buy goods and services from each other

* World Bank: reconstruction and restructuring economies

* WTO: addresses the rules of trade between nations at a near-global membership level

3. Why is it important for political leaders and institutions to be transparent in responding to global competition?

* To convince their constituents that while globalization does create “winners” and “losers,” appropriate policies will be in place to retrain and uplift the downtrodden

4. What are key policy measures that make globalization sustainable?

* Put in place good governance

* Competitive markets

* Property rights

* Assist in the fight against corruption

5. What are ways that technology bridges the global digital divide?

* Which the Internet and wireless telecommunications are by far the most publicly visible form, are changing the relative competitiveness of nations as access to those technologies spreads rapidly around the globe.

6. What is the rationale of specific anti-globalization arguments?

* Arguments against globalization highlight problems such as the costs of disruptive economic change including job losses and stagnant wages, the loss of local control over economic policies and developments, the disappearance of old industries, and related erosion of communities...