16 terms

Globalization

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globalization
The process of countries becoming more open to foreign trade and investment
free trade
The movement of goods and services among nations without political or economic barriers.
multinational corporations
a large business that operates in more than one nation
outsourcing
hiring workers in other countries to do a set of jobs
why would a comapany outsource work?
more efficient to have someone not in the company do it or its a more cheaper way.
foreign investment
Investment made by a foreign company in the economy of another country.
why would American companies invest over seas?
when they have a labor intensive product and many people are told to create this product, the labor in foreign countries make it possible to work overseas.
comparative advantage factor
when they give you and opportunity to invest in a different area.
What advantage factors does India have for the IT industry?
big pop. of hard workers, educated work force, people speaking English, and low wages.
What advantage factors does the United States have for foreign investors?
educated and skilled workforce, close to markets they want to sell in.
What advantage factors does China have for manufacturing?
fewer safety restrictions, strong workforce,
Special Economic Zone
environmental restrictions, special tax breaks Cities and regions in China in which foreigners are allowed to invest.
Why does China need Special Economic Zones?
the country is Communist, government owns the rest of the country
Where are SEZs mainly located?
near big cities, also on the coast of china.
Why do you think that?
have workers and simple to get goods.
What are some pros and cons of globalization?
pros= helps develop countries, keep costs low, make friends with other nations, creates jobs.
cons= lose cultures, no u.s jobs, bad to the environment, no workers.