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IB4 CH01 Instr

Describe globalization Explain how globalization affects markets and production. Identify the drivers of globalization. Describe the globalization debate List types of firms in international business.

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53 views24 pages

IB4 CH01 Instr

Describe globalization Explain how globalization affects markets and production. Identify the drivers of globalization. Describe the globalization debate List types of firms in international business.

Uploaded by

Ben Hui
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 24

Chapter 1 Globalization

Chapter Preview
Describe globalization Explain how globalization affects markets and production

Identify the drivers of globalization


Discuss the globalization debate

List types of firms in international business


Define the global business environment
Prentice Hall, 2008 International Business 4e
Chapter 1 - 2

Globalization Involves Us All


We experience international transactions daily

Imports and exports reach even remote areas


Technology and e-biz promote trade Consumers and companies pull markets closer
Prentice Hall, 2008 International Business 4e
Chapter 1 - 3

International Business

Prentice Hall, 2008

International Business 4e

Chapter 1 - 4

Globalization
Trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies
Globalization of markets Convergence in buyer preferences in markets around the world Globalization of production Dispersal of production activities worldwide to minimize costs or maximize quality

Prentice Hall, 2008

International Business 4e

Chapter 1 - 5

Benefits of Globalization
Globalization of markets Globalization of production

Reduces marketing costs New market opportunities Levels income stream

Access low-cost labor Access technical expertise Access production inputs

Prentice Hall, 2008

International Business 4e

Chapter 1 - 6

Advice of Global Managers


Know the customer Emphasize global awareness Develop world-class products Market effectively Improve logistics

Analyze problems correctly


International Business 4e
Chapter 1 - 7

Prentice Hall, 2008

Globalization Drivers I
Remove barriers to trade and investment

GATT WTO
Regional trade agreements

Prentice Hall, 2008

International Business 4e

Chapter 1 - 8

Trade Exceeds Output

Prentice Hall, 2008

International Business 4e

Chapter 1 - 9

Globalization Drivers II
Technological Innovation
Internet, intranets, and extranets E-mail and videoconferencing Transportation advancements

Better coordination and control


Prentice Hall, 2008

Improved communications and management


International Business 4e

More efficient, dependable shipping


Chapter 1 - 10

Top 20 Global Nations

Prentice Hall, 2008

International Business 4e

Chapter 1 - 11

Globalization Then and Now

Highly mobile labor market

Fear of jobs moving abroad

Free-flowing capital and trade


Prentice Hall, 2008

Backlash among the disaffected


Chapter 1 - 12

International Business 4e

Challenges to Business
Physical security Digital security Reputational risk

Examine company vulnerability and create a disaster recovery plan

Guard proprietary information and confidential communications

Require ethical and lawful behavior from all employees and business partners

Prentice Hall, 2008

International Business 4e

Chapter 1 - 13

From Anarchy to Debate

Rage Violence Carnage Exclusion


Prentice Hall, 2008 International Business 4e

Reason

Legitimacy
Civility

Debate
Chapter 1 - 14

Jobs and Wages


Opponents

Supporters

Eliminates jobs in developed nations


Forces wages lower in developed nations Exploits workers in developing nations

Increases wealth and efficiency Generates labor market flexibility Creates jobs in developed countries Advances economies of developing nations
Chapter 1 - 15

Prentice Hall, 2008

International Business 4e

Labor and Environment


Opponents
Globalization lowers
labor standards

Supporters
+ Investment raises
labor standards

Weakens protection of
the environment

+ Open economies most


environment friendly

Exploits workers in
poor nations
Prentice Hall, 2008

+ Companies concerned
for future markets

International Business 4e

Chapter 1 - 16

Income Inequality Income Inequality debate

1 2

Inequality within nations Poor people in developing nations benefit most from an open economy

Inequality between nations Nations open to world trade and investment grow faster than rich nations

Global inequality Inequality has fallen, but experts disagree on the extent of the decline

Prentice Hall, 2008

International Business 4e

Chapter 1 - 17

National Sovereignty Opponents


Supranational institutions reduce autonomy of national, regional, and local governments
Prentice Hall, 2008

Supporters

Globalization has benefited societies by helping to spread democracy worldwide

International Business 4e

Chapter 1 - 18

Impact on Culture
Opponents

Supporters
Specialize and trade to obtain other goods Import cultural goods from other nations Protects deeper moral and cultural norms

Destroys cultural diversity


Homogenizes our world Bankrupts local small businesses

Prentice Hall, 2008

International Business 4e

Chapter 1 - 19

Culture Matters: Is Resistance Futile?


The Same Everything?

or Cultures Flourishing?
Values Gone for Good? or a Force for Good? Finding Common Ground
Prentice Hall, 2008 International Business 4e
Chapter 1 - 20

International Business Players

Multinational Corporation
Business that has direct investments abroad in multiple countries

Small Businesses and Entrepreneurs


Small companies and individuals becoming increasingly active in international trade and investment

Born-Global Firm
Takes a global perspective on its market and engages in international business from inception

Prentice Hall, 2008

International Business 4e

Chapter 1 - 21

How They Stack Up


Comparing revenue of the world's 10 most global firms to the gross domestic product of nations

Prentice Hall, 2008

International Business 4e

Chapter 1 - 22

Global Business Environment

Prentice Hall, 2008

International Business 4e

Chapter 1 - 23

Chapter Review
Describe globalization Explain how globalization affects markets and production

Identify the drivers of globalization


Discuss the globalization debate

List types of firms in international business


Define the global business environment
Prentice Hall, 2008 International Business 4e
Chapter 1 - 24

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