NAME Karen May B.

Alonsagay
COURSE & SECTION BSBA- FM 2B

LESSON 1 Globalization
1. Recognize the main drivers of globalization.
2. Describe the changing nature of the global
economy.
LEARNING 3. Explain the main argument in the debate over the
OUTCOMES impact of globalization.
4. Understand how the process of globalization is
creating opportunities and challenges for
management practice.
ACTIVITY 1 Assignment 1
1. Read chapter 1 of Hill & Hult and answer the
following.
2. Write your answers below each question.
Instructions
3. This is due for submission on August 23, 2019 via
email nash.reginio@usep.edu.ph . Use this as your
subject: LASTNAME_bsba2A(or 2B)-act1

1. How have changes in technology contributed to the globalization of markets and

production? Would the globalization of production and markets have been
possible without these technological changes?

2. How does the Internet affect international business activity and the
globalization of the world economy?
Internet made it easier for firm that are small or large to conduct international business. It also
made it possible for this firms to join the world economy. Before these advancements in
technology, there are many small firms that couldn't be able to conduct business outside their
domestic economy and this would not have been with the ease and low costs that are associated
with it today. Since firms are able to join in to provide goods and services that are in demand all
around the world, it could now allow for globalisation of the world economy. Countries are able
to outsource to other countries so that they can lower the costs and improve more the quality of
their products. With globalization of the world economy, countries worl together by
entertwining their resources to create more goods and services in order to make the world
better as a whole.

3. If current trends continue, China may be the world’s largest economy by 2030.
Discuss the possible implications of such a development for
A. the world trading system
B. the world monetary system
C. the business strategy of today’s European and U.S.-based global
corporations
D. global commodity prices.

4. Reread the Management Focus on Boeing and answer the following questions:
A. What are the benefits to Boeing of outsourcing manufacturing of
components of the Boeing 787 to firms based in other countries?
B. What are the potential costs and risks to Boeing of outsourcing?
C. In addition to foreign subcontractors and Boeing, who else benefits from
Boeing’s decision to outsource component part manufacturing assembly to
other nations? Who are the potential losers?
D. If Boeing’s management decided to keep all production in America, what do
you think the effect would be on the company, its employees, and the
communities that depend on it?
E. On balance, do you think that the kind of outsourcing undertaken by Boeing
is a good thing or a bad thing for the American economy? Explain your
reasoning.