COMM 211 Final Exam- Globalization Review Notes and
Key Concepts NEW UPDATE 2025-2026 Concordia
University
Comm 211 Final review
Chapter 1 – Globalization
1. Define the terms globalization, globalization of markets, and
globalization of production.
GLOBALIZATION: Shift towards a more integrated and interdependent world economy.
- Several Different Facets:
1. Globalization of Markets
2. Globalization of Production
3. Globalization of Consumers
1. Globalization of Markets and Consumers
- Refers to the merging of historically distinct and separate national markets into one
huge global market.
- Falling barriers for cross-border trading have made it easier to sell internationally.
- Tastes and preferences of consumers in different nations converge on some global
norm making a global market.
- Consumer products such as Citicorp credit cards, Apple iPhones, offer
standardized products worldwide, helping create a global market.
2. Globalization of Production
- Refers to the sourcing of goods and services from locations around the world to take
, advantage of national differences in costs and quality of factors of production.
(Labor, energy, land, capital)
- Companies lower overall cost structure and/or improve quality or functionality
of product offering, thereby allowing them to compete more effectively.
, 2. Examine the rise and functions of global institutions.
Global Institutions:
- Help manage, regulate, and police the global marketplace.
- Promote the establishment of multinational treaties to govern global business system.
- Includes the following organizations:
o United Nations (1945)
o World Trade Organization (WTO) preceded by the GATT.
o International Monetary Fund (IMF): To maintain order in the international
monetary system – Lender of last resort to nation-states whose economies are
in turmoil and who’s currencies are losing value – countries must adopt specific
policies to their troubled economies to stability and growth - controversial.
o World Bank: goal is to promote economic development – provides low
interest rate loans to cash-strapped governments that wish to take
infrastructure investments (buildings dams or road systems) – WB is a group
comprised of:
▪ IBRD: Intl’l Bank for Reconstruction and Development
▪ IDA: International Finance Corporation
▪ IFC: International Finance Corporation
▪ MIGA: Multilateral Investment Guarantee Agency
▪ ICSID: International Centre of Settlement of Investment Disputes
IBRD is the branch involved in international business opportunities for Canadians.
3. Examine Drivers of Globalization.
Drivers of Globalization is driven by 2
factors:
- Decline in barriers to the free flow of goods, services and capital since WW2
- Technological change in communication, information processing, and transportation.
Declining Trade and Investment Barriers:
- Lowering barriers to international trade = world is the market not a single country
- Reducing trade/investment barriers allows firms to base production at optimal location.
, - Design, production, assembly, and exporting could be done in multiple ideal countries.
Technological Change: globalization of markets and production becomes a more tangible reality.
- Microprocessors and Telecommunications: Development of the microprocessor
enabled the explosive growth of high power, low-cost computing, vastly increasing the
amount of info that can be produced – satellite, optical fiber, wireless and internet
technologies rely on them to encode, transmit, and decode the vast amount of info.
- Internet: 1990 <1 million – 2019 = 4 billion – web makes it much easier for
buyers/sellers to find each other – enables enterprises to coordinate and control
globally.
- Transportation Technology: Jet aircraft and super freighters reduce time of travel
– Containerization lowers costs.
4. Illustrate the changing demographics of the global economy.
Changes in Foreign Direct Investment (FDI): Among developing nations, le largest recipient of FDI
has been China than Brazil, Mexico, India – Sustained flow of FDI into developing countries is
an important stimulus for economic growth.
Changing Nature of the Multinational Enterprise (MNE): MNE = any business that has productive
activities in 2+ countries. – Since 1960s, 2 notable trends:
- Rise of non-US multinationals, particularly Japanese
- Growth on mini multinationals
US multinationals = dominant for 3 decades after WW2 reflecting its economic dominance British
also – Globalization and Japan’s rise results in decline in dominance of US/British firms. China
moving towards greater free market reforms – if continues for 2 more decades, they may move
from a developing economy to industrial superpower.
Latin America inflation and dept is down – government are selling state-owned enterprises to
private investors – FDI is welcomed, and region’s economy is growing – increased attractiveness
for market exports and FDI.
Key Concepts NEW UPDATE 2025-2026 Concordia
University
Comm 211 Final review
Chapter 1 – Globalization
1. Define the terms globalization, globalization of markets, and
globalization of production.
GLOBALIZATION: Shift towards a more integrated and interdependent world economy.
- Several Different Facets:
1. Globalization of Markets
2. Globalization of Production
3. Globalization of Consumers
1. Globalization of Markets and Consumers
- Refers to the merging of historically distinct and separate national markets into one
huge global market.
- Falling barriers for cross-border trading have made it easier to sell internationally.
- Tastes and preferences of consumers in different nations converge on some global
norm making a global market.
- Consumer products such as Citicorp credit cards, Apple iPhones, offer
standardized products worldwide, helping create a global market.
2. Globalization of Production
- Refers to the sourcing of goods and services from locations around the world to take
, advantage of national differences in costs and quality of factors of production.
(Labor, energy, land, capital)
- Companies lower overall cost structure and/or improve quality or functionality
of product offering, thereby allowing them to compete more effectively.
, 2. Examine the rise and functions of global institutions.
Global Institutions:
- Help manage, regulate, and police the global marketplace.
- Promote the establishment of multinational treaties to govern global business system.
- Includes the following organizations:
o United Nations (1945)
o World Trade Organization (WTO) preceded by the GATT.
o International Monetary Fund (IMF): To maintain order in the international
monetary system – Lender of last resort to nation-states whose economies are
in turmoil and who’s currencies are losing value – countries must adopt specific
policies to their troubled economies to stability and growth - controversial.
o World Bank: goal is to promote economic development – provides low
interest rate loans to cash-strapped governments that wish to take
infrastructure investments (buildings dams or road systems) – WB is a group
comprised of:
▪ IBRD: Intl’l Bank for Reconstruction and Development
▪ IDA: International Finance Corporation
▪ IFC: International Finance Corporation
▪ MIGA: Multilateral Investment Guarantee Agency
▪ ICSID: International Centre of Settlement of Investment Disputes
IBRD is the branch involved in international business opportunities for Canadians.
3. Examine Drivers of Globalization.
Drivers of Globalization is driven by 2
factors:
- Decline in barriers to the free flow of goods, services and capital since WW2
- Technological change in communication, information processing, and transportation.
Declining Trade and Investment Barriers:
- Lowering barriers to international trade = world is the market not a single country
- Reducing trade/investment barriers allows firms to base production at optimal location.
, - Design, production, assembly, and exporting could be done in multiple ideal countries.
Technological Change: globalization of markets and production becomes a more tangible reality.
- Microprocessors and Telecommunications: Development of the microprocessor
enabled the explosive growth of high power, low-cost computing, vastly increasing the
amount of info that can be produced – satellite, optical fiber, wireless and internet
technologies rely on them to encode, transmit, and decode the vast amount of info.
- Internet: 1990 <1 million – 2019 = 4 billion – web makes it much easier for
buyers/sellers to find each other – enables enterprises to coordinate and control
globally.
- Transportation Technology: Jet aircraft and super freighters reduce time of travel
– Containerization lowers costs.
4. Illustrate the changing demographics of the global economy.
Changes in Foreign Direct Investment (FDI): Among developing nations, le largest recipient of FDI
has been China than Brazil, Mexico, India – Sustained flow of FDI into developing countries is
an important stimulus for economic growth.
Changing Nature of the Multinational Enterprise (MNE): MNE = any business that has productive
activities in 2+ countries. – Since 1960s, 2 notable trends:
- Rise of non-US multinationals, particularly Japanese
- Growth on mini multinationals
US multinationals = dominant for 3 decades after WW2 reflecting its economic dominance British
also – Globalization and Japan’s rise results in decline in dominance of US/British firms. China
moving towards greater free market reforms – if continues for 2 more decades, they may move
from a developing economy to industrial superpower.
Latin America inflation and dept is down – government are selling state-owned enterprises to
private investors – FDI is welcomed, and region’s economy is growing – increased attractiveness
for market exports and FDI.
