1) How has changes in technology and political shifts toward democracy encouraged the
globalization of business.
Answer:
Another fundamental source of influence on globalization has been technology.
Advancements in technology have more efficiently facilitated cross-border transactions.
Innovations in information technology, as well as advances in transportation, have made
it increasingly easy to transfer information, products, services, capital, and human
resources around the world. Email, the Internet, teleconferencing, faxing, and
transatlantic supersonic travel were among the activities that were not available until the
late 20th century.
Electronic commerce, or ecommerce, has been relatively free from government control,
and this flexibility has contributed to the rate of globalization and the generation of
virtual global organizations. Virtual organizations increasingly exist at the global level,
where the geographic sources of the product or service and the location of the workforce
are unimportant.
The shift toward democracy among many societies that were formerly economically and
politically repressed has contributed to the creation of new market opportunities.
Numerous totalitarian regimes have been transformed in Eastern Europe and Asia, for
example, which has created new economic opportunities for businesses in other parts of
the world. Countries like Russia and Poland have shifted toward a more capitalistic and
democratic approach. Perhaps one symbol of this acceptance was the success of
McDonald’s in entering the Russian marketplace years ago. Similarly, there has been a
great interest in foreign investment in China since its move toward privatization—
reduction in government ownership—in many areas.
Diff: 2
Type: ES
Page Reference: 271-274
Skill: both
Objective: LO2
2) Why has outsourcing become such a popular form of global business activity? Give an
example to illustrate your response.
Answer:
Outsourcing involves hiring external organizations to conduct work in certain functions
of the company. So, for example, payroll, manufacturing work etc might be assigned to
outsourced staff. This can be a form of global business activity when it is done on an
international basis. For example, Taiwanese engineers offer innovative solutions for
customers seeking design and manufacturing outsourcing. Currently, its companies are
increasingly expert at original design, and they typically dominate manufacturing in
central categories such as notebook computers. Taiwan’s success has been attributed to
Test Bank for Karakowsky and Guriel, The Context of Business, 1e
Copyright © 2015 Pearson Canada Inc. 1
globalization of business.
Answer:
Another fundamental source of influence on globalization has been technology.
Advancements in technology have more efficiently facilitated cross-border transactions.
Innovations in information technology, as well as advances in transportation, have made
it increasingly easy to transfer information, products, services, capital, and human
resources around the world. Email, the Internet, teleconferencing, faxing, and
transatlantic supersonic travel were among the activities that were not available until the
late 20th century.
Electronic commerce, or ecommerce, has been relatively free from government control,
and this flexibility has contributed to the rate of globalization and the generation of
virtual global organizations. Virtual organizations increasingly exist at the global level,
where the geographic sources of the product or service and the location of the workforce
are unimportant.
The shift toward democracy among many societies that were formerly economically and
politically repressed has contributed to the creation of new market opportunities.
Numerous totalitarian regimes have been transformed in Eastern Europe and Asia, for
example, which has created new economic opportunities for businesses in other parts of
the world. Countries like Russia and Poland have shifted toward a more capitalistic and
democratic approach. Perhaps one symbol of this acceptance was the success of
McDonald’s in entering the Russian marketplace years ago. Similarly, there has been a
great interest in foreign investment in China since its move toward privatization—
reduction in government ownership—in many areas.
Diff: 2
Type: ES
Page Reference: 271-274
Skill: both
Objective: LO2
2) Why has outsourcing become such a popular form of global business activity? Give an
example to illustrate your response.
Answer:
Outsourcing involves hiring external organizations to conduct work in certain functions
of the company. So, for example, payroll, manufacturing work etc might be assigned to
outsourced staff. This can be a form of global business activity when it is done on an
international basis. For example, Taiwanese engineers offer innovative solutions for
customers seeking design and manufacturing outsourcing. Currently, its companies are
increasingly expert at original design, and they typically dominate manufacturing in
central categories such as notebook computers. Taiwan’s success has been attributed to
Test Bank for Karakowsky and Guriel, The Context of Business, 1e
Copyright © 2015 Pearson Canada Inc. 1
