BUSN 1101 Chapter Notes - Chapter 8: Collectivism, Foreign Direct Investment, Geert Hofstede

• School: Northeastern University
• Department: Business Administration
• Course: BUSN 1101
• Professor: Bob Steere

Document Summary

Globalization: the process by which the world economy is becoming a single interdependent system. Benefits include potential for higher standard of living and improved profitability. Criticism includes worker exploitation, and bypassed regulations, lower taxes, etc. Import: product made or grown abroad but sold domestically. Export: product made or grown domestically but sold abroad. World bank uses per-capita income to make distinctions among countries. High-income countries: annual per-capita income > ,746. Upper-middle-income countries: ,595 < annual per-capita income < ,746. Lower-middle-income countries: < annual per-capita income < ,595. Low-income (developing) countries: annual per-capita income < . World economy revolves around 3 marketplaces: north america, europe, pacific asia. Usa dominates north american market with canada as its biggest trading partner. Mexico provides cheap labor and low transportation costs manufacturing center. Western europe is dominated by france, germany, and the uk. Eu has transformed it into an integrated economic system. Eastern europe has gained importance as a manufacturer.