...UNIT -1 GLOBALIZATION AND INTERNATIONAL BUSINESS Chapter 1: Globalization and International Business Prof. Madan Survase Globalization & International Business Learning Objectives To explain the concept of globalization To elucidate factors influencing globalization To discuss global business expansion strategy for emerging market companies To explicate the concept of international business To delineate motives for international business expansion To expound the strategy for managing business in the globalization era Globalization & International Business Chapter 1: Globalization and International Business Prof. Madan Survase Globalization of Business: A Historical Perspective In the initial years of human history, there were hardly any formal barriers, such as tariffs or non-tariff restrictions, for the movement of goods or visa requirements for the people. The concept of globalization can be traced back to the phenomenon of a nation-state. Globalization & International Business Chapter 1: Globalization and International Business Prof. Madan Survase Concept of Globalization The process of integration and convergence of economic, financial, cultural and political systems across the world. Globalization & International Business Chapter 1: Globalization and International Business Prof. Madan Survase Definition of Globalization Dictionary of Trade Policy Terms, WTO: “The increasing integration of national...
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...PERVAIZ KHAN L1S08BBAM0137 GLOBALIZATION “Globalization in an increased unification of world’s economics through reduction of such barriers to international trade as tariffs, export fees, and import quotas. The goal is to increase material wealth, goods, and services through an international division of labor by efficiencies catalyzed by international relations, specialization and competition.”(Friedman 1999). Globalization is an unrelenting integration of nation states, consumer markets, and technologies to an extent that has never witnessed before. Now globalization has enabled the companies and individuals to reach out world faster, farther, deeper and cheaper than ever. Globalization has leaded us to increasing integration of markets, products or services, culture, ideas, and communication. There were two drivers of globalization. First is, by end of World War II, there was a downslope in barriers to flow of capital, goods and services on world wide scale. Second is technological shift in past 3 or 4 decades have resulted in dramatic development in information processing, transportation technologies and communication. Globalization is not a new phenomenon - for thousands of years, people and firms —have been buying from and selling to each other in lands separated by distances. But government and technological changes have promoted globalization to a much greater extent as it did in past. Currently, the greater impact of globalization is much more accounted to technological...
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...International Business Chapter 1 What is international Business Key Concepts In International Business * International Trade - describes the exchange of products and services across national borders * Exchanges can be made through exporting or can also take the form of: * Importing or Global Sourcing - the procurement of products or services from suppliers located abroad for consumption in the home country or a third country. * International Investment - refers to the transfer of assets to another country or the acquisition of assets in that country. Economists refer to such assets as factors of production and they include capital, technology, managerial talent and manufacturing infrastructure. * Foreign Direct Investment - is an internationalisation strategy in which the firm establishes a physical presence abroad through acquisition of productive assets such as land, plant, equipment, capital and technology. It is a foreign-market entry strategy that gives investors partial or full ownership of a productive enterprise. * International portfolio investment - refers to the passive ownership of foreign securities such as stocks and bonds for the purpose of generating financial returns. International portfolio investment and foreign direct investment are the two essential types of cross-border investment. The Nature of International Investment Foreign direct investment (FDI) is the ultimate stage in internationalisation and encompasses the...
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...Global Marketing and Supply Chain Dominoz cast study While prices of Dominoz in china are slightly lower than in US, store sales volume is more than double the US average. Unlike in US, where home delivery is dominant, in china it accounts for only 10-15% of volume. The International Marketing Challenge As in case of Dominoz, the product completely deviates from local teastes and customs in china. International markets offer vast opportunities for firms with a product or service in high demand. Howeer globalization also brings about intense competition in markets that in the past have been domincated by domestic firms. Newness, cultural adaptation, attractiveness, and appropriate marketing strategies can help tremendously. Following are the factors for success in international markets: 1. Accurate assessment of market potential 2. Selection of right product mix 3. Appropriate adjustment in distribution 4. Pricing 5. Packaging 6. Advertising Assessing Market potential To assess market potential, firms seek to identify the aggregate demand for a product and estimate the costs associated with product introduction and distribution. Population growth provides a coarse estimate of future market potential and so do consumption patterns, which are dynamic. Accessibility, profitability and market size all play a major role in deciding market priority. Globalization and Localization in International Markets Striking a balance between globalization and...
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...[Date] [Date] INTERNATIONAL BUSINESS ENVIRONMENT INTERNATIONAL BUSINESS ENVIRONMENT Globalization refers to the widely flow of production factors within the entire globe in order to understand the optimum resource allocation. Different authors provide different definitions of globalisation with their profound research. According to international monetary fund, globalization increases the rapid and extensive transmission of technology along with international commodity, transactions of service and scale of global capital flow. The mutual independence of economy is also strengthened by Globalisation. Economic globalisation builds international capital, production, technology, market, resources and manpower in order to understand reasonable and effective allocation. Competition between the countries are intensified during the effective promotion of global cooperation. This is due to the limited resources and extended capital in economic perspective. In terms of politics each country tends to increase the strength to achieve more profit (Broad & David, 2006). The independent flow of production factors in the world are accelerated though economic globalization which forms a global market. Therefore the global operation of the multinational companies along with the involvement of global industrial structure are promoted. The advantages of capital and technology can be used by the developing countries and by transferring these capital and technology the...
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...THE IMPACT OF GLOBALIZATION ON INTERNATIONAL BUSINESS GROUP NO-01 FMG3231 INTERNATIONAL BUSINESS ECONOMICS FACULTY OF MANAGEMENT CONTENTS PAGE NO An introduction to international business 3 What is globalization? 6 The impact of globalization on international business 6 Future of international business and globalization 12 Summary 12 Reference 13 1. AN INTRODUCTION TO INTERNATIONAL BUSINESS International business involves all commercial transactions—private and governmental—between parties of two or more countries. Global events and competition affect almost all firms—large or small. However, the international environment is more complex and diverse than a firm’s domestic environment. An international business has many options for doing business, it includes, * Exporting goods and services. * Giving license to produce goods in the host country. * Starting a joint venture with a company. * Opening a branch for producing & distributing goods in the host country. * Providing managerial services to companies in the host country. Features of International Business Large scale operations: In international business, all the operations are conducted on a very huge scale. Production and marketing activities are conducted on a large scale. It first sells its goods in the local market. Then the surplus goods are exported. Integration of economies: International business integrates (combines)...
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...Through the global interconnectedness among people, globalization has been appeared. Globalization refers the integration of global economies, societies and cultures through the communication, transportation and trade. During this period of this process, one question has been raised whether is globalization bad or good? And according to this question, it is proved that globalization is playing a fundamental role to make progress to many sections including economies, culture and religion, public services and living standard, and technology. In economics, Globalization refers to the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, flow of international capital and wide and rapid spread of technologies. It shows the market expansion and integration, and it is an unchangeable tendency for international economic development. In economy, globalization is playing a significant role to make advancement to this sector over the world. Globalization has created widely the international economy, integration of markets and the flow or movement in the world, all of which make escalations in global movement. There are many importance of globalization on economy for many years. Improvement in technology has a essential effect in decreasing the costs of transportation, communication and commodity also lowering the price of data processing and information storage. There is a sign of the modern technology like electric...
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...Globalization and Starbucks Globalization has impacted almost every organization currently in operation. Even when organizations choose to limit their activities and operations to a specific geographical region, globalization becomes part of operations as new technologies bring international attention and customers to the company. In the end, few organizations are able to escape the impact of globalization. Given the importance of globalization on the organization, there is a clear impetus to consider how this reality will impact business operations in both the short and the long-term. Using this as a basis for investigation, this research considers the impact the globalization is having on the Starbucks organization. Through a careful consideration of how globalization has impacted this organization, it will be possible to provide salient policy recommendations for change that will improve operations in the organization. Starbucks-An Overview In order to begin this investigation, it is first helpful to consider a review of the Starbucks organization and critical issues currently impacting its development. Reviewing this history of this organization, Lyons (2005) reports that Starbucks originated in Seattle, Washington as a premium coffee retailer. In an effort to foster the success of the organization, leaders chose an aggressive business model that would allow them to permeate and saturate local markets. The business model used by the organization was novel, prompting...
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...in the fields of international payments, international trade, and investment are analyzed. Emphasis is given to the materials and concepts that illuminate the strategies, structure, practices, and effects of multinational enterprises. Course Dates Jun 30, 2015 - Aug 03, 2015 Faculty Information Name : Email Address : Phone Number : HERB SPALLA (PRIMARY) See Policies Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents (both located on your student website): • Academic Policies University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Academic Resources • Web Links Instructions Review the Web Links. SupportingMaterial Web Links • Interactive World Map Link Instructions Review the Interactive World Map Link. SupportingMaterial Interactive World Map Link • Text Citation Information for Electronic Readings Instructions Review the Text Citation Information for Electronic Readings. SupportingMaterial Text Citation Information for Electronic Readings Get Ready for Class • Familiarize yourself with the textbooks used in this course. Instructions Hill, C. W. (2013). International business. Competing...
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...(2005) the national fabric: Fashion, Britishness, Globalisation, bergpublishers, Oxford, UK Held D& McGrew A (2007) Globalization Theory: approaches & Controversies, Polity Press, Cambridge, UK Van Marrewijk C, Schueller S& Ottens D (2007), International Economics: Theory, Application& Policy, Oxford University Press, Oxford, UK Held D& McGrew A (2003) The Global Transformations Reader: An introduction to the Globalization Debate, 2ndedn, Polity Press, Cambridge, UK Stefanovic Z (2008) Globalization: Theoretical Perspectives, Impacts and Institutional Response of the Economy, Economics and Organization, 5:3, 263-272 Lecher Frank J & Boli J (2008) the Globalization Reader, 3rdedn, Blackwell Publishing,...
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...Introduction Globalization is a common word of a major issue in today’s world. It may be referred to many phenomenon consuming politics, technology, corporate strategy, markets, trading, and consumer behavior (Nooteboom 1999, 56). This article is to understand the concept and behavioral changes as a result of globalization towards tourism and hospitality industry in order to construct wider understanding of its negative and positive impacts. Globalization, as a meaning of its term, clearly stated the understanding of product or service market involving two or more countries to serve the worldwide market outside their local networks. It may be referred as the highest commercial development for any company internationally (Teare, Boer 1993, 194). Product trading and media communication, which makes information as a trade good are the division of two main principal or concept in order for a company to further spread their trading power towards utilizing globalization benefits. Globalization is mostly involved by Mega Corporation, multinational and the consumer themselves. Under the economic perspectives, it clearly shows that globalization referred to the increasing of market interdependent and production in two or more countries through trading in goods or service (Teare, Boer 1993, 194). As the trade radius become international, globalization gives an increase of labor workforce- in which international division of labor is achieved by the fragmentation of international production...
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...INTERNATIONAL BUSINESS MANAGEMENT TUTOR NAME: KATE TRUE STUDENT NAME: Which have been the key developments in your area of study in the last 20/30 years and which developments do you think there will be in the future? The management of business operations for an organization that conduct the business in more than one country. International Business is all commercial transactions private and government between two or more countries. Private companies undertake such transactions for profits; governments may or may not do the same in their transactions. These transactions include sales, investments and transportation. International business becomes important because it comprise a large and growing portion of the world’s total business. All companies are affected by global events and competition, whether large or small, since most sell output to and secure raw materials and supplies from foreign countries. International business is similar to the national business in many ways, but there are significant differences that must be taken into account for the successful implementation of international strategies. The main problem is to overcome differences in national cultures, which manifest themselves quite often. International business operates in countries with different cultures, so the same formal parameters of starting a new business (the amount of capital raised, number of employees, production assets, performance incentives, etc.) can be...
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...Globalization International Business Samantha Oberbeck January 29, 2016 Starbucks is a globally recognized coffee company that has locations all over the world. The one part that is missing from the company is a delivery service. In order to take this to the international market, it is important to have an understanding about the pros and cons of doing so, as well as a general knowledge of international expansion. Coffee is a drink enjoyed by most people, whether at home, work, on the road, in the hotel, etc. Premium coffee, like Starbucks, is worth paying for. As of 2012, “Starbucks reported having 5,500 coffee shop locations outside the United States” (Sbdcnet.org, 2016). Their first international coffee house was opened in Tokyo, Japan in 1996. Starbucks now has more than 21,000 stores in over 65 countries. “China is the coffee chain’s number one growth market” (Ball, Geringer, McNett & Minor, 2013, p. 7). In 2015 Starbucks added the “Mobile Order & Pay” option, which just further drives the opportunity to have coffee delivered to you. For consumers, a delivery service is perfect. For the coffee companies attempting the new services, it is much more complicated. Motives for American companies to enter the foreign market are to increase profits and sales and the wants to protect those profits and sales from being destroyed by their competitors. Because Starbucks is the leading coffee company in the world, the company has the advantage in profits and sales...
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...Kotabe, M., Ronkainen, I. A., & Czinkota, M. R. (2011). The Future of Global Business : A Reader. New York: Routledge In this book the discussion surrounds around new approaches and role to international marketing. The author goes into good detail on the competition from emerging markets, marketing mix, global sourcing, and supply chain management. The author makes the reader look deeper into how globalization has brought down trade and investment barriers and has basically connected the world into very far countries by the use of global supply chains and emerging markets. The author has also given a very basic look into how emerging market from developed economies such as Brazil, China, India, and Russia are emerging very quickly from fast economic growth. An experienced author in the field of Global marketing the book provides a very basic setting for research into global marketing. The author touches on main points and does not provide solid information for research into competition, marketing mix, global sourcing or supply chain management. Browne, S., Laird, S., & International Trade Center, (. (U.S.). (2011). The International Trade Centre : Export Impact for Good. New York, NY: Routledge. In this book the author attempts to discuss trade, growth, and competitive advantages and the value chain. The author emphasis that exports growth can be a major component of economic progress. The author tries to get the reader to understand the different stages of development...
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...Studies in Business and Economics THE GLOCAL STRATEGY OF GLOBAL BRANDS DUMITRESCU Luigi Lucian Blaga University of Sibiu, Romania VINEREAN Simona Lucian Blaga University of Sibiu, Romania Abstract: A few years ago, globalization was the new paradigm in international business, however from a branding perspective it has lost its initial efficiency giving the fact that consumers do not seem to feel a connection anymore with the standardized products of global corporations, catered to them in mass marketing communication programs. With their centralized decision making, most companies simply stopped having a connection with the new global marketplace and neglected its emergence. Hence, the influence of local characteristics arose, and with that a new term that encapsulates the global and the local – glocal. “Glocalization” encourages companies to “think global, act local”, and they could do so by using the global brand, while localizing certain elements of that brand in order to suit a particular country. Keywords: global brands, globalization, glocal strategy, glocal marketing. 1. Introduction In 1983, Theodore Levitt published a provocative Harvard Business Review article entitled “The Globalization of Markets”, in which he stated that a new global market, based on uniform products and services, had emerged. He asserted that large scale companies have stopped emphasizing on the customization of their offers to providing globally standardized products that are advanced...
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