...effects of globalization through the story of Geraldo Da Souza, a worker at Ford in Sao Paolo, Brazil. Kevin Tynan, an analyst at the Argus Research Corporation, explains to Geraldo that Ford is losing money worldwide. “The number one driving factor for everybody that puts on their Ford tie in the morning is what is the share price and what can we do to increase the share price”. However, this doesn’t make a lot of sense to Geraldo. His friend Bulldog didn’t get his job back, and then his wife left him and he’s still unemployed. It’s true, though, that Ford’s problems don’t just affect Brazil. A Ford plant at Edison, New Jersey is closing too, and the workers there aren’t happy either. “A lot of the morale around here is/has been kind of flushed down the toilet with no profit-sharing and with, you know, they’re saying our plant is going to close down and people aren’t excited to come to work, and people don’t really want to go the extra mile that a normal employee would when the company stands behind them”. In the video, Geraldo also meets a worker at the Peugeot Citroën plant near Paris. A union activist tells him that global solidarity can help workers in Brazil: “Peugeot employees in Brazil need to be able to benefit from the same advantages we have in France. And I think this will happen through global committees”. Brazil’s President, Lula da Silva, tells Gerardo that capital has become much more mobile, and it’s difficult to turn the clock back. “I think that globalization, as...
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...Globalization was a component that has swayed Google as it has been the other way around as well. Overseeing the globalization for the company from California was a pivotal phase of the business. Google is maintaining its business globally and with similar exhibition, the external risks are intensified. Google has foreign contention in all of its primary businesses: advertisement, internet search, social media, and mobile phones. Some opposition such as Facebook for the social media and Apple for the phones and tablets are leaders and Google must review these external factors. Another external factor that impacts Goggle’s globalization can be difficult because other countries may not want to use a product they are unfamiliar with. Therefore, a thorough explanation of why a product would be beneficial in another country is very important (Ford, 2010). China for example had outlawed Google as a prominent search engine for political consideration. These slumps are compensated by the importance that globalization produces inside Google. In 2012 the organization has a variety of human resources in different locations internationally that creates difficultly to a competitor to even think about emulating Google. “What the laggards have failed to grasp is that what matters most today is not a company's competitive advantage at a point in time, but its evolutionary advantage over time” (Hamel, 2006). Google manages to prepare for their future by understanding that preparing requires...
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...in all around the world rapidly. Besides, multinational corporations play a common significant role in globalization. However, the way the corporations are managed is very dissimilar. In this essay, the distinctness of how the multinational corporations are managed, especially the differences between organizational structures of Ford and Honda will be discussed. The background of a multinational corporation is an organization doing business in more than one country. In other words it is an organization or enterprise carrying on business in not only the country where it is registered but also in several other countries. It may also be termed as an international corporation, global giant and worldwide corporation (Shyam Soni, 2012). Ford is one of the earliest international companies in the world. They organize their company with a really wise way – decentralized decision-making. It is generally seen that there are more and more plus points of decentralization for decision-making. It is said by Kuldeep (2012) that decentralized decision-making helps to reduce burden of top executives and they can concentrate to another important tasks of policy-making, coordination and control. He also states that prompt and more accurate decisions can be made near the point of action without consulting higher levels and without waiting for approval of top executives. In the other side, Ford, individual companies have the right to make autonomic decision depends on the regional executive’s view...
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...Toyota’s Globalization Strategies Identify what ‘drivers’ have been influential in Toyota’s pursuit of globalization Toyota’s journey to become a global automotive firm has had a number of key drivers. The leadership of first Sakichi and Kiichiro Toyada in the early days, and then Fujio Cho in the later years have been crucial in Toyota developing the ambition to succeed on a global basis. Of the ‘drivers’ of globalization discussed in chapter three, some have played a more important role others. Cultural homogenization has played some part as populations in emerging economies, in particular, aspire to car ownership. Countries like China, India and Brazil are seen as huge potential markets for Toyota as an increasing middle class seek car ownership to affirm their status. Economies of scale and scope was a significant driver as Toyota utilized scale economies by opening manufacturing plants in low-cost countries, and exploited scope economies by sharing significant parts across product lines and with other manufacturers in joint ventures. Technological developments had some effect, but Toyota took the decision to centralize these activities in its global operations in its third globalization program. Deregulation and the lowering of trade barriers gets little mention in the case study, but was influential in that how China opened up its markets to outsiders, in turn, shaped how Toyota moved into that market through the setting up of alliances and joint ventures...
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...characterized by rapid, dramatic and turbulent changes. The accelerated pace of change has transformed how work is performed by employees in diverse organizations. Change has truly become an inherent and integral part of organizational life. Several emerging trends are impacting organizational life. Of these emerging trends, five will be examined: globalization, diversity, flexibility, flat, and networks. These five emerging trends create tensions for organizational leaders and employees as they go through waves of changes in their organizations. These tensions present opportunities as well as threats, and if these tensions are not managed well, they will result in dysfunctional and dire organizational outcomes at the end of any change process. These five trends and the specific tensions they produce are presented in Table 1. GLOBALIZATION Organizations operate in a global economy that is characterized by greater and more intense competition, and at the same time, greater economic interdependence and collaboration. More products and services are being consumed outside of their country of origin than ever before as globalization brings about greater convergence in terms of consumer tastes and preferences. Yet at the same time, in the midst of greater convergence, there is the opposite force of divergence at work where companies have to adapt corporate and business strategies, marketing plans, and production efforts to local domestic markets. To stay competitive, more organizations...
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...Globalization can be defined as the global integration of different worldviews, economic outlook, cultural values, and in many cases vast exploitation of workers. Women of color and women of the Third World are highly subject to globalization and the exploitation it causes. Women in Asia are greatly affected by Globalization, both politically and economically. We see in many cases in Asia how this occurs such as, corporations’ exploitation of women, challenges for the women’s movement, and the issue of sex workers and foreign brides. With the issue of exploitation of workers in corporations it becomes clear that Globalization is a huge factor in the livelihood of women in these countries. The idea of work for women has changed, we are now seeing a shift of the type of work women are doing. Before “women’s work” entailed mainly work around the house or reproductive labor. Women are becoming a main part of the productive work force and are now a part of the formalized economy. We have seen a major shift in Malaysia where there has been a huge increase of women’s participation in the formal economy. Women have taken on manufacturing jobs, government jobs, and service jobs. Globalization and Global capitalism has encouraged industrialization in Malaysia and women have been forced out of their homes to move into the more urban areas where the Free Trade Zones are (Ariffin27). According to Ariffin, women made up about thirty-eight percent of the labor market in the 1990’s. Although...
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...Globalization: Meaning, Definition and Features Globalization of markets refers to the gradual integration and growing interdependence of national economies. Globalization allows firms to view the world as an integrated marketplace that includes buyers, producers, suppliers, and governments in different countries. Market globalization is manifested by the production and marketing of branded products and services worldwide. Declining trade barriers and the ease with which international business transactions take place due to the Internet and other technologies are contributing to a gradual integration of most national economies into a unified global marketplace. The Drivers of Market Globalization The exhibit presents an organizing framework for examining market globalization. The exhibit makes a distinction between: (1) drivers or causes of globalization; As market globalization intensifies, individual firms respond to the challenges and new advantages that it brings. However, keep in mind that firms do not expand abroad solely as a reaction to market globalization. They also internationalize proactively, in order to pursue new markets, find lower-cost inputs, or obtain other advantages. Often, adverse conditions in the home market, such as regulation or declining industry sales, push firms to boldly venture abroad. Firms that do so tend to be more successful in global competition than those that engage in international business as a reactive move. Worldwide reduction of barriers...
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...that man lives life. One of the changes in the world that has a strong bearing on man’s life is globalisation, it helped change the way man consumer’s products and interacts with his surroundings. Globalization is the process of international integration arising from the interchange of world views, products, ideas and other aspects of culture (Al-Rodhan, 2006). Advances in transportation, such as the steam locomotive, steamship, jet engine, and container ship, and in telecommunications infrastructure, including the rise of the telegraph and its modern offspring, the Internet, and mobile phones, have been major factors in globalization, generating further interdependence of economic and cultural activities (Albrow,1990). The concept of globalization 'emerged from the intersection of four interrelated sets of "communities of practice": academics, journalists, publishers/editors, and librarians (Paul,2014). In 2000, the International Monetary Fund (IMF) identified four basic aspects of globalization: trade and transactions, capital and investment movements, migration and movement of people, and the dissemination of knowledge(IMF,2000). Further, environmental challenges such as global warming, cross-boundary water and air pollution, and over-fishing of the ocean are linked with globalization (Bridges,2002). Globalizing processes affect and are affected by business and work organization, economics, socio-cultural resources, and the natural environment. Since time in memorial humans...
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...Delta College Economics 1B Dr. James Ford May 7, 2009 ORIGINALLY, the development of the world of commerce was severely restricted by the unavailability, the slowness, and the expense of transportation and communication. Trade by sea was time-consuming. Overland routes were fraught with danger. But all of this was due to change. This has all come to pass due to globalization and technology, where social issue especially in economics has come more apparently important than ever in history. Now new and even more major issues are arising than ever imagined, and unless we start making rational decisions makings as equal descent human beings living in one world, much catastrophe may lay ahead. As an economic phenomenon, globalization is a shift from national economies to a more global economy. In today’s global world, the production of goods has been internationalized, and money flows even more freely and quickly across borders. In this system multinational corporations wield vast power, while anonymous investors can gain much material needs or can cause devastating depression in any part of the world due to greed. Globalization has indeed been a force that has raised living standards for many across the world. Peter Sutherland, chairman of the Overseas Development Council, says that “until recently, it took at least two generations for living standards to double, but in China, living standards now double every 10 years.” Globalization is perceived as bringing many new opportunities...
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...OUTLINE OF CHAPTER 1: GLOBALIZATION Opening Case: Flat Panel Televisions and the Global Economy Introduction What is Globalization? The Globalization of Markets The Globalization of Production Country Focus: Outsourcing American Healthcare The Emergence of Global Institutions Drivers of Globalization Declining Trade and Investment Barriers The Role of Technological Change The Changing Demographics of the Global Economy The Changing World Output and World Trade Picture The Changing Foreign Direct Investment Picture The Changing Nature of the Multinational Enterprise The Changing World Order The Global Economy of the Twenty-First Century Country Focus: India’s Software Sector Management Focus: China’s Hisense-An Emerging Multinational The Globalization Debate Anti-globalization Protests, Globalization, Jobs, and Income Globalization, Labor Policies, and the Environment Globalization and National Sovereignty Globalization and the World’s Poor Country Focus: Protesting Globalization in France Managing in the Global Marketplace Chapter Summary Critical Thinking and Discussion Questions Closing Case: IKEA—The Global Retailer CLASSROOM DISCUSSION POINT Ask students to describe how international business has affected them in their day so far. Ash them about who made the clothes they’re wearing, what type of food they ate for breakfast or lunch (muesli cereal, sushi, Italian-style...
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...Globalization By HEBSMB49 Workshop 1 assignment Due January 18, 2011 Submitted January 18, 2011 Globalization Introduction Modern technology has permanently and dramatically altered the landscape in which businesses operate. Advances in computers and telecommunications have enabled businesses to operate around the clock, reducing the amount of resources wasted, while maximizing efficiency and providing maximum results to shareholders and consumers alike. What is Globalization? Globalization refers to the process by which barriers to trade between countries are reduced or eliminated, advances in transportation and communication make distances between countries immaterial, and national economies are gradually merging into an integrated world economy (Hill, 2009, p. 4). Globalization allows countries to produce and export the goods and services at which they are most efficient, while importing the goods and services from other countries at which those countries are most efficient. This allows goods and services to be produced and offered at the lowest possible prices for the consumer. Several international trading theories support the concept of globalization, including the globalization of markets and the globalization of production. Globalization of markets refers to the trend of multi-national companies selling their products in countries where they previously had no presence. A prime example of this is the world-wide expansion of McDonald’s...
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...Introduction In this paper we will discuss of globalization and how it affects our country and community. There are many ways to look at globalization but you must first understand what the traditional international trade theories are and what the drivers are. Once you have these information we can form an example of how globalization affects are economy. First we are going to define what is a globalization? What is a Globalization? “And we are moving toward a world in which barriers to cross-border trade and investment are declining; perceived distance is shrinking due to advances in transportation and telecommunications technology; material culture is starting to look similar the world over; and national economies are merging into an interdependent, integrated global economic system” (Hill, 2013, p4 ). With the advancement of technology the barriers have been torn down like the “Wall of Berlin”. It has opened our minds to learn about other cultures and to learn about potential business opportunities in those countries. Two of the traditional international trade theories are classical and modern. Major Drivers of Globalization There are two major drivers of globalization. The first is the decline in barriers which allows for the free flow of goods, services and capital. The examples of this driver is the International trade and foreign direct investment. International trade is selling goods in your country to someone in another country. Foreign direct investment...
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...Chapter 1 Globalization and the Multinational Enterprise ( Questions 1-1. Globalization and the MNE. The term globalization has become very widely used in recent years. How would you define it? Narayana Murthy’s quote is a good place to start any discussion of globalization: “I define globalization as producing where it is most cost-effective, selling where it is most profitable, and sourcing capital where it is cheapest, without worrying about national boundaries.” Narayana Murthy, President and CEO, Infosys 1-2. Globalization and Value Creation. What does an MNE need in order for it to create value through the globalization process? Global business, like any business, is the social science of managing people to organize, maintain, and grow the collective productivity toward accomplishing productive goals, typically to generate profit and value for its owners and stakeholders. A multinational enterprise (MNE) needs three fundamental elements in order to build firm value: (1) an open marketplace; (2) high quality strategic management; and (3) access to capital. 1-3. Value Creation and the Concept of Capitalism. How does the concept of capitalism actually apply to the globalization process of a business, as it moves from elemental to multinational stages of development? Open markets and insightful leadership is all for nought if the MNE cannot gain ready access to affordable capital. It is capital that allows the investment...
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...International Business Assignment 3 1. Is Ted Levitt’s premise on Globalization and standardization correct? Based on the two major industries that he is comparing such as multi-national versus global corporations, Ted Levitt's premise on Globalization and Standardization are correct. At some Standardization is prevailing to be a better option for business and consumers than Globalization and in certain aspects Globalization is a prevailing factor. For example, the definition of standardization in terms of operating a business with its products or services is to decrease the cost of production as well as price of the product or service and at the same time provide a high quality of that product to make it a standardized product in order for consumer to take interest in your company. On the other hand, Globalization is more of a Model-T that was created by Henry Ford, that an industry should serve the taste and interest of different people around the world, based on their idea of necessity of certain things in life. In some aspect it is a genuine matter that consumers would be interested in buying what is necessary in their daily lifestyle, however, industries are required to view the bigger picture from a standardization aspect. Standardization view suggests that with low cost and high marketing value, consumers can be attracted to purchase your product. 2. Are firms being forced to globalize (become multi-nationals) due to market pressures regardless of preference ...
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...Chapter 9 1. One of the most common entry strategies for MNCs is the joint venture. Why are so many companies opting for this strategy? Would a fully owned subsidiary be a better choice? 1） wholly owned subsidiary is an overseas operation that is totally owned and controlled by an MNC. This option is often pursued by smaller companies, especially if international or transaction costs, such as the cost of negotiating and transferring information, are high. When MNCs make an initial investment in the form of a wholly owned subsidiary in a foreign country, it is sometimes referred to as “greenfield” or de novo (new) investment. The primary reason for the use of wholly owned subsidiaries is a desire by the MNC for total control and the belief that managerial efficiency will be better without outside partners. Due to the sole ownership, it has been found that profits can be higher with this venture and that there are clearer communications and shared visions. However, there are some drawbacks. Typically, wholly owned subsidiaries face a high risk with such a large investment in one area and are not very efficient with entering multiple countries or markets. This can also lead to low international integration or multinational involvement. Furthermore, host countries often feel that the MNC is trying to gain economic control by setting up local operations but refusing to include local partners. Some countries are concerned that the MNC will drive out local enterprises...
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