Wild IB5e PPT Instructor 01

GlobalizationGlobalization

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


International Business 5e Chapter 1 - 2

• Describe the process of globalization

• Explain how globalization affects markets and production

• Identify two drivers of globalization

• Summarize the globalization debate

• List types of firms in international business

• Describe the global business environment

Chapter PreviewChapter Preview



Globalization Involves Us AllGlobalization Involves Us All

We experience internationaltransactions daily

Imports and exports reacheven remote areas

Technology and e-bizpromote trade

Consumers and companiespull markets closer



International BusinessInternational Business




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



Benefits of GlobalizationBenefits of Globalization

GlobalizationGlobalizationof marketsof markets

GlobalizationGlobalizationof productionof production

• Reduces marketing costs

• New market opportunities

• Levels income stream

• Reduces marketing costs

• New market opportunities

• Levels income stream

• Access lower-cost labor

• Access technical expertise

• Access production inputs

• Access lower-cost labor

• Access technical expertise

• Access production inputs



Challenges to BusinessChallenges to Business

Physicalsecurity

Digitalsecurity

Reputationalrisk

Examine companyvulnerability andcreate a disaster

recovery plan

Guard proprietaryinformation and

confidentialcommunications

Require ethical andlawful behavior from

all employees andbusiness partners



Globalization Drivers IGlobalization Drivers I

Regional tradeRegional tradeagreementsagreements

GATTGATT

WTOWTO

Remove barriers to trade and investment



Trade Exceeds OutputTrade Exceeds Output



Globalization Drivers IIGlobalization Drivers IITechnological InnovationTechnological Innovation

Email and videoconferencing

Internet, intranets,and extranets

Transportationadvancements

Better coordination and control

Improved communications and management

More efficient, dependable

shipping



Measuring GlobalizationMeasuring Globalization



Globalization Then Globalization Then andand Now Now

Highly mobileHighly mobilelabor marketlabor market

Highly mobileHighly mobilelabor marketlabor market

Fear of jobs Fear of jobs moving abroadmoving abroad

Fear of jobs Fear of jobs moving abroadmoving abroad

Backlash amongBacklash amongthe disaffectedthe disaffected

Backlash amongBacklash amongthe disaffectedthe disaffected

Free-flowing Free-flowing capital and tradecapital and trade

Free-flowing Free-flowing capital and tradecapital and trade



From Anarchy to DebateFrom Anarchy to Debate

ViolenceViolenceViolenceViolence

Rage Rage Rage Rage

CarnageCarnageCarnageCarnage

ExclusionExclusionExclusionExclusion

LegitimacyLegitimacyLegitimacyLegitimacy

ReasonReasonReasonReason

CivilityCivilityCivilityCivility

DebateDebateDebateDebate



Jobs and WagesJobs and Wages

Eliminates jobs in developed nations

Lowers wages in developed nations

Exploits workers in developing nations

Increases wealth and efficiency everywhere

Generates labor market flexibility in developed countries

Advances economies of developing nations

SupportersSupportersOpponentsOpponents



Labor, Environment, & Labor, Environment, & MarketsMarkets

– Globalization lowers labor standards

– Weakens protection of the environment

– Exploits workers in poor nations

+ Investment raises labor standards

+ Open economies most environment friendly

+ Companies concerned for future markets

Opponents Supporters



Advice of Global ManagersAdvice of Global Managers

Communicate effectively

Know the customer

Emphasize global awareness

Market effectively

Monitor business environments

Analyze problems correctly



Income Inequality Income Inequality debate debate

Inequality within nationsPoor people in developing nations benefit most from

an open economy

Inequality between nationsNations open to world trade and investment grow faster

than rich nations

Global inequalityInequality has fallen, but experts disagree on the

extent of the decline

Income InequalityIncome Inequality

32

1



National SovereigntyNational Sovereignty

SupportersSupporters

Globalization has Globalization has benefited societies by benefited societies by

helping to spread helping to spread democracy worldwidedemocracy worldwide

OpponentsOpponents

Supranational Supranational institutions reduce institutions reduce

autonomy of national, autonomy of national, regional, and local regional, and local

governmentsgovernments



Impact on CultureImpact on Culture

Opponents

• Destroys cultural diversity

• Homogenizes our world

• Bankrupts local small businesses

Supporters

• Specialize and trade to obtain other

goods

• Import cultural goods from other nations

• Protects deeper moral and cultural norms



Culture Matters:Culture Matters:The Global ConsumerThe Global Consumer

Culture Matters:Culture Matters:The Global ConsumerThe Global Consumer

Material DesireMaterial DesireMaterial DesireMaterial Desire

A Force for GoodA Force for GoodA Force for GoodA Force for Good

Artistic InfluenceArtistic InfluenceArtistic InfluenceArtistic Influence

Deeper ValuesDeeper ValuesDeeper ValuesDeeper Values

Western ValuesWestern ValuesWestern ValuesWestern Values



International Business PlayersInternational Business Players

Business that has direct investments abroad in multiple

countries

Small companies and individuals becoming increasingly active in

international trade and investment

Adopts a global perspective and

engages in international business from or near

its inception

MultinationalCorporation

Small Businesses

and Entrepreneurs

Born Global Firm



How They Stack UpHow They Stack Up

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



FactsFacts of Small Biz Exporting of Small Biz Exporting

Most exporters haveMost exporters havefewer than 50 employeesfewer than 50 employees

Most exporters haveMost exporters havefewer than 50 employeesfewer than 50 employees

Comprehensive help Comprehensive help is availableis available

Comprehensive help Comprehensive help is availableis available

Most products do notMost products do notneed an export licenseneed an export licenseMost products do notMost products do notneed an export licenseneed an export license

Export financingExport financingis availableis available

Export financingExport financingis availableis available



Global Business EnvironmentGlobal Business Environment



• Describe the process of globalization

• Explain how globalization affects markets and production

• Identify two drivers of globalization

• Summarize the globalization debate

• List types of firms in international business

• Describe the global business environment

Chapter ReviewChapter Review



All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any

means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher.

Printed in the United States of America.


Date post:	24-Apr-2015
Category:	Documents
Upload:	alishe4ka
View:	99 times
Download:	2 times

Wild IB5e PPT Instructor 01

Documents