Chapter1Globalization,RegionalEconomicIntegration

andInternationalBusiness

一、Trueorfalse

(V)1.Asaprominentphenomenonandcharacteristicofthetimes

intheworldtoday,globalizationhasnounifieddefinition.1

(V)2.Globalizationisnotimmutable,butahistoricalprocess

ofdynamicchange.1

(X)3.Economicintegrationisintheoryfromlow-levelto

high-level,andtheeconomicunionbetweencountriesisfromlooseto

closedevelopmentpolitics.Itismainlydividedintofiveforms:

preferentialtradearrangements,freetradeareas,customsunions,

economicalliances,andcompletePoliticalalliance.2

Answer:Economicintegrationisintheoryfromlow-leveltohigh-level,

andtheeconomicunionbetweencountriesisfromloosetoclose

developmentpolitics.Itismainlydividedintosixforms:preferential

tradearrangements,freetradeareas,customsunions,commonmarkets,

economicalliances,andcompletePoliticalalliance.

(X)4.TheGroupofSevenreferstothesevenmajorindustrial

countries:theUnitedStates,Britain,Germany,France,China,Italyand

Canada.Itisastrictinternationalorganization.3

Answer:TheGroupofSevenreferstothesevenmajorindustrial

countries:theUnitedStates,Britain,Germany,France,Japan,Italyand

Canada.Itisnotastrictinternationalorganization.Itusedtobecalled

“richcountryclub”.

(V)5.Regionaleconomicintegrationmaybringaboutmoreserious

tradeprotectionandunbalanceddevelopment,furtherwideningthe

economicgapbetweenNorthandSouth.1

二、ChoiceQuestion

1、Globalizationwillhaveahugeimpactonthetechnology,economy,

society,politicsandcultureofacountry.However,ininternational

business,thedefinitionoftenmentionedis(A).

A、EconomicglobalizationB、Politicalglobalization

C>CulturalglobalizationD>Technologicalglobalization

Answer:Globalizationwillhaveahugeimpactonthetechnology,

economy,society,politicsandcultureofacountry.However,in

internationalbusiness,thedefinitionoftenmentionediseconomic

globalization.1

2>(C)remainthedominantforceinglobalization.

A、InternationalorganizationB、Industryassociation

C、MultinationalcompaniesD>InternationalCourtofJustice

Answer:Intheprocessofeconomicglobalization,multinational

enterprises,asanimportantactor,directlypromotethedevelopmentof

economicglobalization.1

3、(A)referstotheabolitionoftariffsandquantitative

restrictionsonmerchandisetradebetweenmemberstates,andthe

impositionofcommontariffsonimportsofnon-memberstates.Italso

stipulatesthatproductionfactors(capital,labor,etc.)canmovefreely

betweenmemberstates.

A、CommonMarketB、CustomsUnion

C、FreetradezoneD、EconomicUnion

Answer:Commonmarketreferstotheabolitionoftariffsand

quantitativerestrictionsonmerchandisetradebetweenmemberstates,and

theimpositionofcommontariffsonimportsofnon-memberstates.Italso

stipulatesthatproductionfactors(capital,labor,etc.)canmovefreely

betweenmemberstates.2

4>In(D),Chinaasasovereignstate,andChineseTaipeiand

HongKongformallyjoinedAPECinthenameofregionaleconomies.

A、1989B、1999

C、1993D、1991

Answer:InNovember1991,Chinaasasovereignstate,andChinese

TaipeiandHongKongformallyjoinedAPECinthenameofregional

economies.2

5、(C)isarelativelylowandlooseformofeconomicintegration.

A、CustomsUnionB、Freetradezone

C、PreferentialtradearrangementsD>EconomicUnion

Answer:Preferentialtradearrangementsisarelativelylowandloose

formofeconomicintegration.2

三、Nounexplanation

1>Globalization

Answer:Globalizationcanbeunderstoodfrombothnarrowandbroad

aspects.Generalizedglobalizationexpressesgerminationandproduction

ofcapitalistproductionrelations,andhascontinuedtoexpandanddeepen

thedevelopmentofinterrelationsandinteractionsintheworld.The

narrowglobalizationreferstothetrendoftheworldeconomicpolitical

relationshipwiththeintegrateddirectionoftheintegrateddirection

sincethethirdscienceandtechnologyindustryinthe1970s,especially

theWesternWesterninthe1970s.1

2、Economicglobalization

Answer:Economicglobalizationisacontextofcontinuousimprovement

intheglobaltechnologylevel.Theeconomiclinksbetweencountrieshave

graduallyimproved,internationaldivisionoflabor,cooperationand

elementsflowgraduallyallovertheworld,andtheeconomicrulesof

variouscountriesaregraduallyunified,multilateralagreementsand

worldorganizationsEconomicconstraintsandcoordinatedeffects

continuetoenhancetheprocess.1

3、Regionaleconomicintegration

Answer:Regionaleconomicintegrationreferstotwoormorecountries

orregionsintheregion,underthecoordinationofasupranationalcommon

institutionauthorizedbythegovernment,throughtheformulationofa

unifiedinternalandforeigneconomicpolicies,fiscalandfinancial

policies,etc.,removeobstaclesthathindereconomicandtrade

developmentbetweencountries,realizemutualbenefit,coordinated

developmentandoptimalallocationofresourcesintheregion,andfinally

formaorganismofhighlycoordinatedandunifiedpoliticalandeconomic

process.1

4、CustomsUnion

Answer:Customsunionreferstothecompleteabolitionoftariffsand

quantityrestrictionsinmerchandisetradebetweenmemberstates,sothat

goodscanflowfreelybetweenmemberstates.Inaddition,themember

statesalsostipulateuniformrestrictionsonimportsfromnon-member

states.Goodsoutsidethecustomsunionwillbeleviedthesametariff,

nomatterenterswhichmemberofthecustomsunion.2

四、Essayquestions

1.Trytoanalyzethemainfeaturesofglobalization

Answer:

(1)Globalizationisahistoricalprocessofdynamicchange

Globalizationisnotimmutable,butahistoricalprocessofdynamic

change.Withtheprogressofproductivityandtheexpansionoftheworld

market,thescopeandlevelofglobalizationcontinuetoexpand.The

discoveryofnewlandsandimprovedtransportlinkslinkedregional

markets.Theglobalexpansionofcapitalistmodeofproductionobjectively

promotestheglobalflowofresourceelements,theprosperityof

internationaltrade,investmentandfinance,andthedevelopmentof

transnationalcorporations.Theestablishmentandfunctionof

internationalorganizationsandthestrengtheningofcontactsamong

countriesandregionsarealsoboostingthedeepeningofglobalization.On

thewhole,globalizationpresentsthetrendofdynamicchangetowardsa

widerrangeanddeeperlevelofdevelopment.Tradeprotectionismand

anti-globalizationcannotchangetheobjectivehistoricalcourseof

globalization.

(2)Globalizationistheenhancementandaccelerationoftheprocess

ofcommunication,fusionandintegrationonaglobalscale

Sincethe1970sand1980s,theglobalpopularityandabsolute

superiorityofthemarketeconomysystem,coupledwiththepromotionand

instrumentalsignificanceoftherevolutionaryprogressofhigh

technology,especiallytheinformationandtransportationfields,have

madeallgeographicalbarriersandnationalboundarieslimitationsofthe

worldhavebeengreatlyweakened.Theexchangesandinteractionsbetween

allsubjectsonaglobalscalehavebecomemoredirect,convenientand

fast,whichgreatlypromotesthefusion,integrationandsocialization

processamongallpartsoftheworldandvariouscommunities.

(3)Globalizationisbasedontheforceofscientificandtechnology

Thescientificandtechnologicalrevolutionisthecoredrivingforce

forthecontinuousimprovementofproductivityandthefundamental

impetusfortheformationoftoday'shighlyinterconnectedsocialand

economiceconomy.Fromthesteameratotheelectricalera,andthen

developedtotheinformationage,thepreviousscientificand

technologicalrevolutionshavegreatlyimprovedtheefficiencyofsocial

divisionoflabor,andpromotedtheprocessofeconomicglobalization.

(4)Globalizationistheglobalizationofalllevelsinthechanges

ofhumancivilization

Thechangesandchallengesofglobalizationtohumansocietyare

omni-directionalandmulti-faceted,anditisnotjustasingleeconomic

globalization,technologicalglobalizationortheunityoftheglobal

market.Globalizationhaspenetratedintoallaspectsofsocial

productionandlife,andispromotingthefundamentalchangeofthewhole

wayofhumancivilization.

(5)Globalizationisadevelopingprocesswithimbalance

Theprocessofglobalizationisunevenamongcountries,whichhasled

toafurtherwideningofthegapbetweendifferentcountries.2

2、Trytoanalyzetheimpactofglobalizationoninternational

business

(一)Positiveimpact

(1)Promotethedeepeningofglobaldivisionofbusinessandimprove

efficiency

Theimportantfoundationofglobalizationisthedeepeningand

expandinginternationaldivisionoflabor.Thedevelopmentof

globalizationfurtherpromotesthedevelopmentofinternationaldivision

oflabor,enablingdifferentcountries,regionsandenterprisesto

specializeintheirownadvantagestoengageininternationalbusiness,

makingbusinessactivitiesmoreextensive,involvingmorefieldsandmore

diversifiedstakeholders,andpromotingtheinnovationandemergenceof

morenewbusinessformsandmodels.Notonlysuch,divisionoflaboris

advantageoustothespecializationlevelofascension,andconduciveto

theformationoftheglobalmarketanddependoneachotherandcooperation,

theresultingsinglemarketwillhelptheflowofresourcesonaglobal

scaleandtooptimizeconfiguration,helpstogivefullplaytothe

competitivemechanism,theresultwillpromotetoreducecostsand

economicefficiencyofcontinuedascension,Ithelpsmeetthe

differentiatedconsumerneedsofdifferentglobalmarkets.

(2)Promotethedevelopmentofinternationaltrade,investmentand

finance

Globalizationdevelopmentforcountriesandregions,aswellas

varioustypesofenterpriseswithforeigncontactinformation,channels

andplatforms,expandthemarketspaceofthetradinggoodsandservices

andinterests,promoting,includingtradeingoods,tradeinservicesand

intellectualpropertyrights,theprosperityanddevelopmentof

internationaltrade,stronglypromotethetradecountrypopulation

employmentandeconomicgrowth.Atthesametime,globalizationalso

createsconditionsforenterprisestomakeinternationaldirect

investment.Moreandmoreenterprisesareseekinginternational

development,exploringtheinternationalmarketandbecominganimportant

forceinthepatternofopeningup.Thedevelopmentofinternational

financeisaccompaniedbyinternationaltradeandinvestment.The

developmentofinternationalbusinessisobviouslyinseparablefrom

finance.Itisoneofthemostcompellingareasofglobalization.

(3)PromoteMNCstrategyimplementationandglobaloperations

Theprosperityanddevelopmentofglobalizationpromotethebirthof

alargenumberoftransnationalcorporations.Asthemainforceof

globalization,transnationalcorporationsareboththepromotersand

beneficiariesofglobalization.Multinationalcompanieslookaroundthe

worldandtheirdevelopmentstrategiesareorientedtowardsthe

internationalmarket.Itisintheprocessofexpandingtheglobalmarket

thatmultinationalcompaniesstrivetoachievetheirowndevelopment

visionandstrategicgoals.Inthisprocess,itnotonlylearnsthe

managementexperienceofenterprisesinothercountriesandregions,

strengthensexchangeandlearning,andobtainslearningeffect,butalso

continuouslycarriesoutRESEARCHanddevelopmentinnovation,promotes

theimplementationofstrategyandglobaloperation,soastomaximize

thebenefits.Allthesecannotbeseparatedfromthefavorableenvironment

andconditionsofglobalization.

(4)Promotetheformulationandcoordinationofinternational

businessrules

Theprocessofglobalizationisboundtofacethecoordinationof

interestsandtheintegrationofinternationalinterests.Duetothe

deepeningofglobalization,thepolicyofopeningupandthecooperation

inthefieldsofpolitics,economy,culture,scienceandtechnology,

countriesandregionsarecloselyconnectedwitheachother,soitis

necessarytohavecorrespondingrulesandsystemsforcoordination.The

emergenceofinternationalorganizationsandtheformulationof

internationalrulesundoubtedlymeettherequirementsoftheobjective

situationandservethecommoninterestsofallcountriesinthe

world.Internationalbusinessactivities,inparticular,needafair,

transparentandlaw-basedbusinessenvironment.Globalizationhasclearly

facilitatedtheformulationofrelevantrulesinvariousfields,aswell

asenhancedinterestcoordinationandcooperationamongdifferent

stakeholders.

(二)Negativeimpact

(1)Leadtounbalanceddevelopment

Althoughglobalizationisconducivetotheeffectiveallocationof

resourcesintheworld,duetothedifferencesincompetitivenessand

levelofdevelopment,theperformanceofdevelopedcountriesand

developingandunderdevelopedcountriesinthefaceofglobalcompetition

isobviouslydifferent.Inaglobalizedworld,developedcountrieshave

abroadermarketspaceforgoodsandservices,amoreadvantageous

positioninthedivisionoflabor,aswellasefficiencyandabilityto

useresources,sotheycanobtaingreatereconomicbenefitsinforeign

trade,investmentandotheractivities.Incontrast,developingandless

developedcountriesorregions,economicdevelopmentlevelisgenerally

low,thelevelofscienceandtechnologyandeducationisgenerallyweak,

intheinternationalmarketcompetitivenessandvoiceisnotenough,so

intheglobalizationmarketcompetition,oftenatadisadvantage,which

maymakethedevelopedcountriesanddevelopingandlessdevelopedinan

unbalanceddevelopmentintheinternationalsituation.

(2)Risktransmission

Globalizationpromotesfreetradeandinvestment,theformationof

asinglemarketandrules,andcloselinksbetweencountriesand

regions.However,whilebringingdevelopmentopportunitiesandbenefits,

italsobringsgreatrisksandchallenges.Thetransmissibility,

volatilityandinfluenceofvariouscomplexrisksbroughtaboutbymarket

risks,financialrisksandemergenciesarestrengthenedandmagnifiedin

space,oftenresultinginasituationofmutualprosperityandmutual

loss.Takefinancialrisksasanexample.Inthecontextoftheexpansion

anddeepeningofeconomicglobalization,capitalflowsarefast,

large-scale,moreconvenientandfinancialactivitiesaremorefrequent.

Therefore,whenfinancialrisksorevenfinancialcrisesoccur,theyare

characterizedbyfasttransmissionofrisks,largespreadandwide

impact.Therefore,riskpreventionhasbecomeanimportantaspectthat

relevantstakeholdersmustattachgreatimportancetointheprocessof

globalization.

(3)Bringchallenges

Globalizationalsobringsotherchallengestointernationalbusiness,

includingtheimpactofinternationalcompetitionontraditionaldomestic

industries,securitythreatstonationaleconomy,finance,cultureand

otheraspects,andnegativeimpactsontheenvironment,employmentand

ruleoflaw.Globalizationhasledtoimportantstructuralchangesthat

donotaffectdifferentsocialgroupsequally.Thecontradictionbetween

thebenefitgroupsandthelossgroupsintheprocessofglobalization

hasbecomeanimportantdrivingforceforthereversalof

globalization.Althoughglobalizationhasanegativeimpacton

internationalbusiness,asanobjectivehistoricalprocess,

internationalbusinessactivitiesshouldgivefullplaytothepositive

roleofglobalizationandmakeunremittingeffortstopromoteamore

efficient,fairandreasonableinternationalbusinessorder.

3、Analyzesixformsofregionalintegration

Economicintegrationisintheoryfromlow-leveltohigh-level,and

theeconomicunionbetweencountriesisfromloosetoclosedevelopment

politics.Itismainlydividedintosixforms:preferentialtrade

arrangements,freetradeareas,customsunions,commonmarkets,economic

alliances,andcompletePoliticalalliance.

(1)Preferentialtradearrangements

Preferentialtradearrangementsrefertoakindofregionaleconomic

arrangementinwhichmembercountries,throughsigningpreferentialtrade

agreementsorotherarrangements,offerspecialtariffpreferencesto

eachotherforallorpartoftheircommodities,andsethighertrade

barrierstothetradebetweennon-membercountries.Itisarelatively

lowandlooseformofeconomicintegration.TheBritishEmpire，s

preferentialsystemestablishedbyBritainanditsmemberstatesin1932,

the""AssociationofSoutheastAsianNations"andthe"China-ASEAN

PreferentialTrade"arrangementsestablishedafterWorldWarIIallfall

intothiscategory.

(2)Freetradezone

Freetradeareameansthatthememberstatesthathavesignedafree

tradeagreementcompletelycanceleachother"stariffsandquantity

restrictionsincommoditytrade,sothatgoodscanflowfreelyamongthe

memberstates.However,thememberstatesstillmaintaintheirown

restrictionsonimportsfromnon-memberstates.Freetradeareaisthe

mostcommonformofregionaleconomicintegration,accountingfor90%of

regionaleconomicintegration.NorthAmericanFreeTradeArea,ASEANFree

TradeArea,etc.belongtothiscategory.

(3)CustomsUnion

Customsunionreferstothecompleteabolitionoftariffsandquantity

restrictionsinmerchandisetradebetweenmemberstates,sothatgoods

canflowfreelybetweenmemberstates.Inaddition,thememberstatesalso

stipulateuniformrestrictionsonimportsfromnon-memberstates.Goods

outsidethecustomsunionwillbeleviedthesametariff,nomatterenters

whichmemberofthecustomsunion,suchastheearly''EuropeanEconomic

Community""And"EastAfricanCommunityz，.Thecustomsuniongaveeconomic

integrationasupranationalcharacter,whichisanotherstepforwardon

theroadtocompleteeconomicintegration.

(4)CommonMarket

Commonmarketreferstotheabolitionoftariffsandquantitative

restrictionsonmerchandisetradebetweenmemberstates,andthe

impositionofcommontariffsonimportsofnon-memberstates.Italso

stipulatesthatproductionfactors(capital,labor,etc.)canmovefreely

betweenmemberstates.TheEUtransitionedfromacustomsuniontoacommon

marketattheendof1992.

(5)EconomicUnion

Economicunionmeansthatinadditiontothefreeflowofgoodsand

productionfactorsandtheestablishmentofcommonexternaltariffs

betweenmemberstates,italsorequiresmemberstatestoformulateand

implementcertaincommoneconomicandsocialpolicies,andtoabolish

policydifferences.Sothatallaspectsoftheeconomyarecarriedout

inaunifiedandcoordinatedmanner.Theeconomicunionmeansthatthe

memberstateshavenotonlytransferredtherightsrequiredtoestablish

acommonmarket,butmoreimportantly,thememberstateshavetransferred

therighttousemacroeconomicpoliciestointerferewiththeirown

economicoperations.Thetransferofthesepolicy-makingpowersisof

greatsignificancetotheformationofafreemarketeconomywithinthe

communityandtoplaytheroleofan''invisiblehand”.

(6)Perfectlyeconomicintegration

Perfectlyeconomicintegrationisthehighestorganizationalformof

economicintegration.Onthebasisoftheeconomicunion,themember

statesintheregionfullyimplementaunifiedeconomicandsocialpolicy,

establishaunifiedcurrencysystem,andenableeachmemberstatetoform

asingleeconomicentityeconomically.Thereisnosucheconomic

integrationorganizationintheworld.OnlytheEuropeanUnionisworking

hardtoachievethisgoal.

Iftheotherfiveformsaretheintermediatestagesoftheeconomic

integrationprocess,thencompleteeconomicintegrationisthefinal

stageofeconomicintegration.Atthisstageofdevelopment,thefinal

decision-makingpowerofeachcountry，seconomicdevelopmenthasbeen

transferredtothesupranationalauthority.2

4、TrytoanalyzetheEuropeanUnion

TheEuropeanUnion,isheadquarteredinBrussels,thecapitalof

Belgium.ItwasdevelopedfromtheEuropeanCommunityandhas6founding

memberstates,namelyGermany,France,Italy,theNetherlands,Belgium

andLuxembourg.Nowithas27memberstatesand24officiallanguages.

TheoriginalpredecessoroftheEuropeanUnionwastheEuropeanCoaland

SteelCommunity,whichwasestablishedin1951.Atthattime,itwas

composedofBelgium,France,theformerFederalRepublicofGermany,Italy,

LuxembourgandtheNetherlands.Hisgoalistoremovetheobstaclesto

thetransportationofcoal,iron,steelandscrapmetalwithinthegroup.

AfterthesigningoftheTreatyofRomein1957,theEuropeanCommunity

wasestablished.AftertheMaastrichtTreatywasratifiedin1994,the

namewaschangedagainfromtheEuropeanCommunitytotheEuropeanUnion.

TheEUhastenmaininstitutions,whichperformfunctionssimilarto

thegovernmentofacountry.Thefivemostcriticalinstitutionsarethe

EuropeanCouncil,theEuropeanCouncil,theEuropeanCommission,the

EuropeanParliamentandtheEuropeanCourtofJustice.Theotherfive

institutionsaremainlyresponsibleforfinancialandsocialissues,

includingtheEuropeanCourtofAuditors,theEuropeanEconomicandSocial

Commission,theRegionalCommittee,theEuropeanCentralBankandthe

EuropeanInvestmentBank.3

Chapter2ThePoliticalandEconomicEnvironmentof

InternationalBusiness

一、Trueorfalse

(V)1.Astablepoliticalenvironmentisconducivetoenterprises

andconsumerstoformstablemarketexpectationsandmaintainstrategic

andmanagementoperationstability.1

(X)2.SaudiArabiahasapresidentialpoliticalsystem.2

Answer:Monarchyistheformofregimeorganizationinwhichthe

monarchistheheadofstateandnominallyoressentiallyholdsthepower

ofgovernment.MoretypicalcountrieslikeSaudiArabia.

(V)3.ChinapracticesasocialistmarketeconomywithChinese

characteristics.1

(V)4.Economicsystemcanbedividedintopublicownershipand

privateownershipaccordingtothewayofresourcepossession,andplanned

economyandmarketeconomyaccordingtotheclassificationofresource

allocation.2

二、ChoiceQuestion

1、Whichofthefollowingrelevantindicatorsiscommonlyusedto

examinepoliticalsystems.(AB)

A、Emphasisoncollectivismorindividualism

B、Degreeofdemocracyorcentralization.

C、Degreeofmasculinityandfemininity

D、Uncertaintyabouttheextentofavoidance

Answer:Thedifferencesofpoliticalsystemsindifferentcountries

areobvious.Inadditiontothedifferenttypesofpoliticalsystems,it

canalsobeunderstoodfromtwoaspects:theemphasisoncollectivismor

individualismandthedegreeofdemocracyorcentralization.2

2、Whichofthefollowingisthetypeofpoliticalsystemtoday?

(ABCD)

A、monarchyB、parliamentarysystem

C、people，scongressD>Presidentialsystem

Answer:Differentcou