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Chapter 1 International Management Notes

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CHAPTER 1
GLOBALIZATION
LEARNING OBJECTIVES:
1. Describe the process of globalization and how it affects markets and production.
2. Identify the two forces causing globalization to increase.
3. Summarize the evidence for each main argument in the globalization debate.
4. Identify the types of companies that participate in international business.
5. Describe the global business environment and identify its four main elements.

CHAPTER OUTLINE:
Introduction
International Business Involves Us All
Technology Makes It Happen
The Global Relay Race
Globalization
Globalization of Markets
Reduces Marketing Costs
Creates New Market Opportunities
Levels Uneven Income Streams
Yet Local Needs Are Important
Globalization of Production
Access Lower-Cost Workers
Access Technical Expertise
Access Production Inputs
Forces Driving Globalization
Falling Barriers to Trade and Investment
World Trade Organization
Regional Trade Agreements
Trade Agreements and Trade Growth
Technological Innovation
E-mail and Videoconferencing
Internet and World Wide Web
Company Intranets and Extranets
Advancements in Transportation Technologies
Measuring Globalization
Untangling the Globalization Debate
Today’s Globalization in Context
The Current Globalization Backlash
Leaving the Anarchists Behind
Before We Go On
Globalization’s Impact on Jobs and Wages
Globalization Costs Jobs and Lowers Wages
Eliminates Jobs in Developed Nations
Forces Wages Lower in Developed Countries
Exploits Workers in Developing Nations
Globalization Creates Jobs and Boosts Wages
Increases Wealth and Efficiency

Generates Labor Market Flexibility
Creates Jobs in Developed Nations
Advances Developing Nations’ Economies
Summary of The Jobs and Wages Debate
Globalization’s Impact on Labor and Environmental Regulation
Labor Standards
Environmental Protection
Developing Future

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