The third phase of globalization was triggered by the development of personal computers, the Internet, and Web browsers. Firms expand abroad mainly as a reaction to market globalization. Firms often internationalize proactively, in order to pursue new markets, find lower-cost inputs, or obtain other advantages.
The two of the three main components of globalization are: A. the globalization of markets and the globalization of production B. the globalization of production and the globalization of finance
Firms often internationalize proactively, in order to pursue new markets, find lower-cost inputs, or obtain other advantages. Offshoring and the flight of jobs are prime drivers of market globalization. Globalization of production activities and services is a dimension of market globalization.
Technology has led to the emergence of global markets for standardized consumer products. Which of the following is true according to Theodore Levitt's article in the Harvard Business Review about the globalization of world markets? Multinational corporations operate at low relative costs.
Free trade agreements are agreements that allow participating nations to trade without tariffs and quotas.
Globalization and free trade allow nations to use their comparative advantages effectively. This can lead to an increase in wages, although the effects on low-skilled jobs may not be positive.
When trade occurs with nations that have lower living standards, it tends to benefit their economy and raise living standards. However, trade does not necessarily raise the living standard of a country.