2. While globalization has been much criticized
for its possible negative side effects, this
shows that globalization has amplified the
spread of technology across borders in two
ways. First, globalization allows countries to
gain easier access to foreign knowledge.
S econd, it enhances international
competition—including as a result of the rise
of emerging market firms—and this
strengthens firms’incentives to innovate and
adopt foreign technologies.
3. Technological advancement
is the generation or discovery
of knowledge that advances
the understanding of science
or technology. The phrase
“discovery of knowledge” is
often misunderstood.
4. A. THE ADVENT OF MASS PRODUCTION
Mass production is the manufacturing of large
quantities of standardized products, often using
assembly lines or automation technology.
5. • An early example of mass
production dates back to 1913
when Henry Ford pioneered
the first assembly line
technique for his famous
Ford Model T.
• Ford's automobiles became
available at a lower price
because of the efficiency of
the method.
13. Machination of progress refers to the discovery of new
and improved methods of producing goods. Changes in
machination leads to an increase in labor, capital and
other factors of production.
Phases of Technological Progress
• Invention
• Innovation
• Diffusion
14. 1. Invention – the act of creating new technology.
2.Innovation – may be used synonymously with
“invention” or may refer to discovering a new way in
which to use or apply existing technology.
• Relative advantage – means the product or behavior
is perceived as being better than the alternatives by
the person adopting the innovation.
• Compatibility – refers to how the innovation aligns
with the adopter’s lifestyle.
15. • Complexity – how easy or difficult innovation is to
understand.
• Trialability – the process of testing the innovation
• Observability – involves seeing the product or behavior
in action.
3. Diffusion – refers to the spread of technology throughout
a society or industry.
19. What is Globalization?
is the word used to describe the growing interdependence
of the world’s economies, cultures, and populations,
brought about by cross-border trade in goods and
services, technology, and flows of investment, people, and
information.
20. What is Trade?
Trade is the buying and selling of goods and services
between different countries around the world.
Goods that are brought into a country are called
_IMPORTS, and those that are sold to another country
are called EXPORTS .
21. WHAT IS GLOBAL TRADE?
Global trade is the exchange of goods or services
between countries and is made up of the total
imports and exports of each participating nation. It
is governed by supply and demand (with
occasional government intervention) and relies on
that supply and demand to determine the price of
each product or service sold.
22. Some nations choose to specialize in various
products and services and have a comparative
advantage over other nations. Countries with an
absolute advantage on a good or service are the
best at producing that good or service and are
most likely to export these to other nations. That
is how the global economy is formed – trade
between nations.
23. FREE TRADE
is a pact between two or more nations to reduce
barriers to imports and exports among them.
Under a free trade policy, goods and services can
be bought and sold across international borders
with little or no government tariffs, quotas,
subsidies, or prohibitions to inhibit their
exchange.
24. PROTECTIONISM
is the practice of following protectionist trade policies.
A protectionist trade policy allows the government of a
country to promote domestic producers, and thereby
boost the domestic production of goods and services
by imposing tariffs or otherwise limiting foreign goods
and services in the marketplace.
25. Some of the main tools used to accomplish
PROTECTIONISM are:
TARIFFS
SUBSIDIES
QUOTAS
EMBARGOS
26. Top Trade Sectors
The top trade sectors in the global trade market have
remained relatively consistent in spite seen significant
market fluctuation in the past decade. Entities wishing to
trade globally might consider some of these sectors.
27. According to the CIA World Factbook, these are top 10 most
traded commodities since 2017.
1.Electrical Machinery – Including Computers (14.8%)
2.Mineral Fuels – (14.4%)
3.Nuclear Reactors – (8.9%)
4. Vehicles – (8.9%)
5.Scientific and Precision Instruments – (3.5%)
6.Plastics – (3.4%)
7.Iron and Steel – (2.7%)
8. Organic Chemicals – (2.6% )
9. Pharmaceutical Products – (2.6%)
10. Precious Stones – (1.9%)
Other significant trade areas include service/labor and intellectual
property.
28. The US currently spends nearly $2.361 trillion annually
on imports and the top 3 commodities include:
1.Industrial Supplies (32.9%)
2.Consumer Goods (31.8%)
3.Capital Goods (30.4%)
29. Currently the US is operating at a trade deficit. It earns
approximately $1.553 trillion annually and its top 3
exported products include:
1.Capital Goods (49%)
2.Industrial Supplies (26.8%)
3.Consumer Goods (15%)
31. •Building blocks for international growth – once a business is able
to successfully expand to one foreign market, they increase their
likelihood of spreading to others. They can increase brand
awareness in the region, spark interest in neighboring countries,
and pull the brand into those countries as well.
•Increases competition – The more sellers in the marketplace, the
cheaper and better the products are for the consumer.
Advantages
32. •Improves financial performance – Most countries offer significant
market potential for many products. Expanding globally allows
more people to see, evaluate, and purchase products. More
exposure often correlates to higher sales.
•Distributes a brand’s or business’s risk – Once again, the more
people exposed to a product or service, the better chance to make
a sale. Selling to foreign countries increases sales potential and
relieves pressure to sell domestically.
Advantages
33. Disadvantages
•Political risk – Operating in foreign nations means operating with
foreign governments, laws, and customs as well as with potential
political unrest. Shifting political climates can often pose disruption
to global trade.
•Cultural complications – This can take many forms and can be
difficult to anticipate. Some of the major gaffs come from language
barriers, physical mannerisms, or religious offenses. These mistakes
can be costly if enacted improperly.
34. Disadvantages
•Increases the risk IP theft – Some individuals do not act ethically
and will not adhere to US patent law or follow intellectual property
protections. Trading globally often exposes companies to copyright
and trademark infringement and it is more difficult to combat on
foreign soil where laws and customs differ from the US
•Exchange rate risk – Global currency is constantly shifting value,
so product and service values also shift.
35. Global trade has been the backbone of the
global economy and continues to grow
today. There are many advantages and
disadvantages associated with it, and
many more strategies on what is the best
way to do it
