Financial Planning II Unit 4 Test

What is globalization?

• Globalization is a process where by the worlds' economy touch

• Globalization is the rapid and unimpeded flow of capital, labor, and ideas across national borders.

• Globalization is a term that mean worldwide

How has technology influenced globalization?

• The swift introduction of new technological innovations, mainly the cell phones

• The swift introduction of new technological innovations, like airplanes and jets; making it ease to travel the nations

• new technological innovations, mainly the Internet. It is literally the “World Wide Web,” connecting people and businesses across the globe.

How has transportation influenced globalization?

• The ability to travel more freely contributes to the spread of culture and ideas throughout the world, and it also makes it easier to conduct business on an international level.

• The ability to travel more freely with the help of planes, ships, and the like that allows one economy to touch another economy making markets easy to connect and become international

• The ability to travel more freely with the help of planes, ships, and the like that allows one economy to touch, making it easy for businesses to market themselves internationally and reach a greater market share

How has the world’s political environment influenced globalization?

• We have open economies and close ones. We have international relationships that are easy to maintain when political environment are peaceful, but when they are not peaceful globalization is harder to achieve.

• After the fall of communism in many of these countries, the lines of communication and financial exchange became open. Today, the United States has friendships and trading partnerships with most of these formerly closed nations.

• Nations like North Korea had lots of nationalism ideologies that make globalization nearly impossible, but open markets make globalization easy to achieve for nations of the world.

What are the advantages of globalization for businesses?

• Greater opportunities to make money, reduced costs, cheaper taxes, and happier people

• Greater opportunities to make money, reduced costs, more innovation, and more choices for consumers

• Greater opportunities for choices for the consumers, and a greater pool of customers to profit from

What are the disadvantages of globalization for businesses?

• increased competition, increase culture influences where one country starts to loose its identity

• increased taxes, cheaper products, increase theft among traders

• increased competition, brain drain, backlash from offshoring, and environmental degradation

What factors maintain differences between countries/regions?

• Natural barriers still exist between different countries and regions, including language differences, distance and geography, cultural and political differences, infrastructure, and nationalism.

• Natural barriers still exist between different countries and regions, including water, transportation, distance and geography, cultural religion, food

• Natural barriers still exist between different countries and regions, including water, transpiration, air quality, recycling, trade wars, and unfair pricing

Why do businesses choose to enter foreign markets?

• To make more money, remain competitive. People go in to business to make a profit. Entering foreign markets make that goal easier to achieve

• Business like the ideal of being multinational corporations so they work to enter foreign markets

• To make more money, remain competitive, To build brand value in new and expanded target markets. To find new resources. To diversify and save on taxes.

What are the methods businesses can use for entering foreign markets? 

• Methods of international expansion include exporting, licensing, franchising, forming joint ventures or strategic alliances, creating wholly owned subsidiaries, and establishing multinational firms.

• The ability to travel more freely contributes to the spread of culture and ideas throughout the world, and it also makes it easier to conduct business on an international level.

• Greater opportunities to make money, reduced costs, more innovation, and more choices for consumers

What is infrastructures?

• basic utilities, useful assets that a business use for imports

• planes, boats, and any manner of transportation

• basic roads, services, utilities, etc.