Globalization

Learning objectives

• Explain why it is important for managers today to have a global perspective. • Explain the three components of globalization • Describe its effects on markets and production • Explain how technology and innovation in transportation have speeded up globalization • Discuss pros and cons of globalization

This chapter is dedicated to introducing the student to the emergence of a new and integrated world of business in which the traditional barriers to cross-border trade and investment including distance, time zones, language, differences in national government regulation, culture and business systems recede in significance due to globalization. The discussion of contemporary issues in international business illustrates the unique challenges of international business. A review of macro-economic and political changes that have taken place in the last 30 years highlights the issues that a typical manager must address in a global market. Information technology and technological changes have put global markets within the reach of small firms in remote locations. In spite of all its benefits, globalization is not a panacea. Critics of globalization point out that it has adverse effects on some firms and individuals.
The opening case chronicles the meteoric rise of Wal-Mart from its humble Arkansas beginnings in 1962 to a global retailing giant with $218 billion in sales in 2002.
The closing case, Ecuadorian Valentine Roses, follows a rose from Ecuador to New York while describing the hazardous working conditions in Ecuador and the growing backlash among European consumer groups.
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WebeSource http://www.cnn.com/2004/US/Southwest/01/08/levi.s.closing.ap/ http://www.nacsonline.com/NACS/News/Daily_News_Archives/July2003/nd0722036.htm