Submitted by: Submitted by xoellex3
Views: 253
Words: 3707
Pages: 15
Category: Business and Industry
Date Submitted: 10/08/2012 08:08 PM
Important topics to study
(Political environment and Globalization)
1. What was the major reason why world political environment changed so dramatically for last couple of decades?
• The collapse of the Soviet Union and the failure of communism because of a lack of motivation (Bipolar System)
2. The definition of Globalization and its four different interpretations.
• Globalization is the growing socio/cultural/economic interdependence of countries abetted by the recent technological advancement
• 4 different interpretations of Globalization:
o 1. Sociological - growing sense of unicity or global village (deterritorialization)
o 2. Cultural - "the spread of west on the rest" and cultural convergence
o 3. Political - process of losing sovereignty of nations & empowerment of people and NGO'S
o 4. Economic - expansion of free market capitalism & acceleration of cross border transactions facilitated by the recent technology development
3. Factors contributed to Globalization.
• 1. Time space compressed by new technology (Fax internet, emails, Trains)
• 2. Institutional arrangement: WTO, IMF, OECD
o World Trade Organization, International Monetary Fund, Organization for Economic Cooperation & Development
• 3. Deregulation/liberation by the government (easier cross border transportation eliminates restrictions)
4. Positive and negative aspects of globalization.
Positive →
• 1. Economic Prosperity - allows for efficient use of resources
• 2. More interdependence - Countries can rely on each other, improve productivity & efficiency
• 3. Cultural convergence - rapid spread of western culture
• 4. "Pollution halo" - MNC'S can actually IMPROVE local environment with higher standards
• 5. Cost efficiency due to cheap labor improve local econ. - firms reduce cost by building production facilities in country, they can use cheaper resources
Negative →
• Income disparity - the richer get richer and the poorer get poorer
• 2. More...