GLOBALIZATION AND INTERNATIONAL

LINKAGES

Joseph, Kevin, Kristen, Daniel

Goals and Layout of Lesson Find how globalization has affected different

regions, and the costs and benefits of globalization Find why Russia and Eastern Europe are of

interest to international managers Find why Asia holds such an interest for

international management Find why MNC’s would be interested in South

America, India, Middle East, Central Asia, and Africa and less developed emerging countries and if MNC’s would be better off focusing efforts on more industrialized regions

Globalization vs Internationalization Globalization: the process of integration

among countries around the world with a vision of a single market entity:Social Economic Political Technological Cultural

Internationalization: the process of a business crossing national and cultural borders.

Terms International Management: the process of applying

management techniques to multiple national environments and adapting these practices to different cultural, political and economical environments

MNC (Multinational Corporation): A firm that operates in more than one country, has sales internationally and has managers and owners of many different nationalities

Difference between globalization and internationalization.

Difference between outsourcing and offshoring.

Quiz Question 1

The US, Canada and Mexico make up the _____, which has removed all barriers to trade between these countries and created a huge North American Market.North American Free Trade AgreementGeneral Agreement on Tariffs and TradeNorth American Trade UnionNorth American Common Market

Quiz Question 2

The following are trade agreements or alliances among countries except:ASEANNAFTANATOEU

Quiz Question 3

The following statements are true about the US and Canada except:Canada is the largest trading partner of the

USBoth countries are participants in NAFTAThe legal and business environments of the

two countries are very differentIn recent years, Canadian firms have begun

investing heavily in the US

Quiz Question 4

According to the book, which of the following South American countries is described as an economic success story?ChileVenezuelaBrazilParaguay

Quiz Question 5

Chaebols are large, family held conglomerates in:ChinaSouth KoreaJapanThailand

Quiz Question 6

There is a growing trend toward expanding horizons and doing business with nations thousands of miles away.TrueFalse

WHY?

Quiz Question 7

During the 1980’s, China’s average real economic growth was about 10 percent.TrueFalse

WHY?

Quiz Question 8

A small population and a high GDP typically characterize an LDC.TrueFalse

WHY?

Quiz Question 9

Finnish, French, Italian and German companies outsource IT work the Central and Eastern European contractors because they are usually cheaper than Indian contractors.TrueFalse

WHY?

Discussion

How has globalization affected different world regions? What are some of the benefits and costs of globalization for different sectors of society (companies, workers, communities)?

Pros and Cons of Globalization

Benefits of Globalization:wealth, jobs, technology, lower prices.

Criticisms of Globalization:off-shoring of business service jobs to lower-

wage countries;growing trade deficits;slow wage growth;environmental and social impacts.

Trends in International Investments and Trade International Investments:

80% from developed countries Foreign direct investment (FDI) Growing at healthy rate Outpacing domestic growth in most countries

International Trade: Over ½ of world trade accounted for by United

States, European Union and JapanIncreased substantially over last two decades

Goals and Layout of Lesson Find how globalization has affected different

regions, and the costs and benefits of globalization Find why Russia and Eastern Europe are of

interest to international managers Find why Asia holds such an interest for

international management Find why MNC’s would be interested in South

America, India, Middle East, Central Asia, and Africa and less developed emerging countries and if MNC’s would be better off focusing efforts on more industrialized regions

Russia and Eastern Europe Dismantling of price controls Privatization Direct investments are helping GDP increase

and inflation decrease Russia so large that it has potential for future Hungary has cheap, highly skilled labor Keys are to maintain social order, establish rule

of law and get value-added factories running Eastern Europe branch of Coca-Cola expands

at twice the rate of its other foreign operations

Goals and Layout of Lesson Find how globalization has affected different

regions, and the costs and benefits of globalization Find why Russia and Eastern Europe are of

interest to international managers Find why Asia holds such an interest for

international management Find why MNC’s would be interested in South

America, India, Middle East, Central Asia, and Africa and less developed emerging countries and if MNC’s would be better off focusing efforts on more industrialized regions

Asia Has continued growth potential Large underdeveloped markets Income threshold will rise creating more

demand for goods 3 of 4 BRIC countries are located in Asia

Predicted to be among 4 most dominate economies by 2050

China will surpass US in output Keiretsus in Japan and Chaebols in Korea

(Pg 26)

Goals and Layout of Lesson Find how globalization has affected different

regions, and the costs and benefits of globalization Find why Russia and Eastern Europe are of

interest to international managers Find why Asia holds such an interest for

international management Find why MNC’s would be interested in South

America, India, Middle East, Central Asia, and Africa and less developed emerging countries and if MNC’s would be better off focusing efforts on more industrialized regions

South America and Middle East

Growth in international investment flows Oil reserves Growth in population leads to growth of

economy Privatization which leads to offshoring Trade agreements Some countries have promising growth

development

Here Comes the Competition Is Europe likely to be a good area for

direct investment during the years ahead? Why is so much foreign money being

invested in US manufacturing? Based on your conclusions, what advice

would be in order to the conglomerate? If the conglomerate currently does not do

business in Europe, what types of problems is it likely to face?

Where in the world is Carmen San

Diego’s company based?