A level Globalization Quiz. Globalization, or globalisation (Commonwealth English; see spelling differences), is the process of interaction and integration among people, companies, and governments worldwide. Globalization has accelerated since the 19th century due to advances in transportation and communication technology. This increase in global interactions has caused a growth in international trade and the exchange of ideas and culture. Globalization is primarily an economic process of interaction and integration that is associated with social and cultural aspects. However, conflicts and diplomacy are also large parts of the history of globalization, and of modern globalization.
Economically, globalization involves goods, services, data, technology, and the economic resources of capital. The expansion of global markets liberalizes the economic activities of the exchange of goods and funds. Removal of cross-border trade barriers has made the formation of global markets more feasible. Advances in transportation, like the steam locomotive, steamship, jet engine, and container ships, and developments in telecommunication infrastructure, like the telegraph, Internet, and mobile phones, have been major factors in globalization and have generated further interdependence of economic and cultural activities around the globe.
Though many scholars place the origins of globalization in modern times, others trace its history to long before the European Age of Discovery and voyages to the New World, and some even to the third millennium BC. The term globalization first appeared in the early 20th century (supplanting an earlier French term mondialization), developed its current meaning some time in the second half of the 20th century, and came into popular use in the 1990s. Large-scale globalization began in the 1820s, and in the late 19th century and early 20th century drove a rapid expansion in the connectivity of the world's economies and cultures.
Which three of the following are often regarded as characterising globalisation?
a) Increasing space
b) Shrinking space
c) Strengthened borders
d) Shrinking time
e) Disappearing borders
Which three of the following represent the emerging view of strategic development within globalised economies?
a) Strategy as stretch and leverage
b) Strategy as fit with resources
c) Strategy as top management activity
d) Strategy as total organisational process
e) Strategy as creating new industry space
Which three of the following characterise the 'Hyperglobalist' view of globalisation?
a) Global capitalism and global governance
b) Declining powers of national governments
c) Increasing powers of national governments
d) Powerless nation states at the mercy of 'footloose' multinationals
e) Powerful nation states able to resist the pressures from multinationals
Which three of the following might be used to indicate increased globalisation?
a) A sharp fall in the average transnationality index for the top 100 multinationals
b) A rapid increase in the average transnationality index for the top 1000 multinationals
c) An increased proportion of national regulatory changes more favourable to foreign direct investment
d) An increased proportion of national regulatory changes less favourable to foreign direct investment
e) A sharp increase in the share of world national income derived from information and knowledge-based activities
Which of the following perspectives of globalisation is most likely to reflect the views of economists?
Much debate has taken place as to what is meant by globalisation and different schools of thought have emerged. For the following five questions try to match each description of globalisation with its correct term.
Used to describe the increasing geographical relocation of production processes on a global scale by multinationals.
Whilst recognising that globalisation is a powerful force, they admit that there is considerable uncertainty as to what the outcomes of globalisation might be.
See globalisation as inevitably resulting in global capitalism, global governance and global civilisation.
Focuses on the methods by which companies can engage in large worldwide investments without a huge increase in fixed costs and with fewer of the problems typically associated with managing complex global operations.
Focuses on the tendency for time and space to become compressed under globalisation, so that different ways of life and social practices become intertwined, resulting in an evolving mixture of ideas, knowledge and institutions.
A rise in the average transnationality index for the world's largest 100 multinationals is a useful indicator of increased globalisation.
Whereas strategy has traditionally concentrated on positioning a company in existing industry space, under globalisation the new approach to strategy often involves a company in creating new industry space.
Transformationalists have a more certain view than hyperglobalists as to the outcome of the globalisation process, namely global capitalism and global governance.
The loss of sovereignty for nation states is often associated with globalisation by political scientists.
Globalisation is a multi-dimensional process, reshaping the context of security, health control and other governmental policies just as much as their economic policies.
Pull factors refer to —