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Chapter 2 Globalization

Chapter 2 Globalization

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5 views

Chapter 2 Globalization

Chapter 2 Globalization

Uploaded by

Yally
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Globalization

Copyright 2010 Pearson Education,


Inc. publishing as Prentice Hall

Globalization Involves Us All

Experience international
transactions daily

Imports and exports reach


even remote areas

Technology and e-biz


promote trade


e-biz
Consumers and companies
pull markets closer
Copyright 2010 Pearson
Education, Inc. publishing as
Prentice Hall

International Business 5e

Chapter 1 - 2

Globalization (Cont.)
Trend toward greater economic, cultural, political and
technological interdependence among national institutions
and economies


Globalization of
markets
Globalization of
production
Consumer
Production activities
preferences in
worldwide to minimize
markets around the
costs or maximize quality
world


Copyright 2010 Pearson
Education, Inc. publishing as
Prentice Hall

International Business 5e






Chapter
1
-3

Benefits of Globalization
()
Globalization
of markets ()

Globalization
of production ()

Reduces
Reducesmarketing
marketingcosts
costs

Access
Accesslower-cost
lower-costlabor
labor

New
Newmarket
marketopportunities
opportunities

Access
Accesstechnical
technicalexpertise
expertise

(
(



)
)
(

(

)
)

Levels
Levelsincome
incomestream
stream
(

)
(

)
Copyright 2010 Pearson
Education, Inc. publishing as
Prentice Hall

International Business 5e

(
(

)
)
(
(

)
)

Access
Accessproduction
productionSkills
Skills
(
)
(

)
Chapter 1 - 4

Advice of Global Managers


()

Communicate effectively

Know the customer

Emphasize global awareness

( )

Market effectively

Monitor business
)
Analyze
)
Copyright 2010 Pearson
Education, Inc. publishing as
Prentice Hall

( )

environments

problems correctly

International Business 5e

Chapter 1 - 5

Globalization Drivers I
Remove barriers to trade
and investment

GATT(1947)

WTO (1994)

Regional trade
Agreement

Copyright 2010 Pearson


Education, Inc. publishing as
Prentice Hall

International Business 5e

Chapter 1 - 6

Globalization Drivers II
Technological Innovation
Email and
videoconferencing

Better
coordination
and control
Copyright 2010 Pearson
Education, Inc. publishing as
Prentice Hall

Internet, intranets,
and extranets

Transportation
advancements

Improved
communications
and management

More efficient,
dependable
shipping

International Business 5e

Chapter 1 - 7

Globalization Then and Now


()
Highly mobile
labor market ( )

Fear of jobs
moving abroad (
)

Free-flowing
capital and trade (
)

Backlash among
the disaffected
( )

Copyright 2010 Pearson


Education, Inc. publishing as
Prentice Hall

International Business 5e

Chapter 1 - 8

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


(Nuclear Plant)
Copyright 2010 Pearson
Education, Inc. publishing as
Prentice Hall

International Business 5e

( )

Chapter 1 - 9

Measuring Globalization
( )

Copyright 2010 Pearson


Education, Inc. publishing as
Prentice Hall

International Business 5e

Chapter 1 - 10

Trade Exceeds Output (


)

Copyright 2010 Pearson


Education, Inc. publishing as
Prentice Hall

International Business 5e

Chapter 1 - 11

Jobs and Wages ()


Opponents

Eliminates jobs in
developed nations
(
)
Lowers wages in
developed nations
( )
Exploits workers in
developing nations
( )

Copyright 2010 Pearson


Education, Inc. publishing as
Prentice Hall

Supporters

( )

()

Increases wealth and


efficiency everywhere

( )
Generates labor market

flexibility in developed
countries ()

Advances economies
of developing nations

International Business 5e

Chapter 1 - 12

Labor, Environment, & Markets


Opponents
Globalization lowers
labor standards

()

Weakens protection of
the environment

( )

Exploits workers in

poor nations (
)

Copyright 2010 Pearson


Education, Inc. publishing as
Prentice Hall

Supporters
+ Investment raises
labor standards
()
+ Open economies most
environment friendly
( )
+ Companies concerned
for future markets
()

International Business 5e

Chapter 1 - 13

Impact on Culture (
)
Supporters

Opponents

Destroys cultural
diversity (
)

Homogenizes our world


()

Bankrupts local small


businesses
()

Copyright 2010 Pearson


Education, Inc. publishing as
Prentice Hall

Specialize and trade


obtain other goods
()

Import cultural goods from


other nations
( )

Protects deeper moral


and cultural norms
( )

International Business 5e

to

Chapter 1 - 14

Culture Matters:
The Global Consumer
Material Desire ( )
Artistic Influence ()
Western Values ()
A Force for Good (
)
Deeper Values (, .
)
Copyright 2010 Pearson
Education, Inc. publishing as
Prentice Hall

International Business 5e

Chapter 1 - 15

International Business Players

Multination
al
Corporation

Business that has


direct investments
abroad in multiple
countries

Copyright 2010 Pearson


Education, Inc. publishing as
Prentice Hall

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

International Business 5e

Born Global
Firm
Adopts a global
perspective and
engages in international
business from or near
its inception

Chapter 1 - 16

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

Copyright 2010 Pearson


Education, Inc. publishing as
Prentice Hall

International Business 5e

Chapter 1 - 17

Global
Business
Environment

Copyright 2010 Pearson


Education, Inc. publishing as
Prentice Hall

International Business 5e

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