ARBUS301 Study Guide - Midterm Guide: Global Sourcing, Offshoring, Country Risk

• School: University of Waterloo
• Department: Arts and Business
• Course: ARBUS301
• Professor: Mark Arnason

Document Summary

Drivers of globalization: drivers of market globalization, worldwide reduction of barriers to trade and investment, market liberalization and adoption of free markets, advances in technology. Integration of world financial markets: dimensions of market globalization. Commercial risk: weak partner, operation problems, timing of entry, competitive industry, poor execution of strategy. Currency (financial risk: currency exposure, asset valuation, foreign taxation. Cross cultural risk: cultural differences, negotiation patterns, decision-making styles, ethical practices. Proactive economic development plan implemented by the public sector to nurture or support promising industry sectors with potential for regional or global dominance. Vietnam"s government in the 1990s privatized state enterprises and modernized the economy, emphasizing competitive, export-driven industries. Vietnam became one of the fastest-growing economies, averaging around 8 percent annual gdp growth. Singapore adopted probusiness, pro-investment, export-oriented policies, combined with state- directed investments in strategic corporations. The approach stimulated economic growth that averaged 8 percent annually from 1960 to 1999.