Chapter 1

The Globalization of Starbucks
-company focused on selling a “thirdplace” experience, rather than just coffee
-first target outside US was Japan and the company established a joint venture with a local retailer
-Starbucks format was then licensed to the venture which then took over responsibility for growing the Starbucks presence in Japan
-Starbucks transferred employees to the Japanese operation
-all employees went to training classes
-stores had to adhere to design parameters established in US
-took its success here and went to other foreign markets
-purchases mainly Fair Trade Certified coffee to promote environmental responsibility
-Starbucks has shown that glo

Globalization (shift towards a more integrated and interdependent world economy):
+: Expand revenue by selling around the world and reduce costs by producing in nations where lower input costs
-: increases competition and drives price down
Globalization of markets refers to the merging of historically distinct and separate national markets into one huge global marketplace

Most global markets are markets for industrial goods and materials that serve a universal need the world over such as market for commodities (aluminum, oil, and wheat), industrial products (commercial jet aircraft), computer software, and financial asses

Firms follow eachother around the world so greater uniformity replaces diversity

Globalization of production: sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production (i.e. labor, energy, capital)

Vizio and the market for flat panel tvs Production for flat panel displays migrates around the globe to low-cost locations.
US consumers have benefitted from the falling prices of flat panel TVs
Taken advantage of globally dispersed supply