...Chapter 1 Globalization What Is Globalization? Globalization - the shift toward a more integrated and interdependent world economy The world is moving away from selfcontained national economies toward an interdependent, integrated global economic system 1-2 What Is The Globalization of Markets? Historically distinct and separate national markets are merging It no longer makes sense to talk about the “German market” or the “American market” Instead, there is the “global market” falling trade barriers make it easier to sell globally consumers’ tastes and preferences are converging on some global norm firms promote the trend by offering the same basic products worldwide 1-3 What Is The Globalization of Markets? Firms of all sizes benefit and contribute to the globalization of markets 97% of all U.S. exporters have less than 500 employees 98% of all small and mid-sized German companies participate in international markets 1-4 What Is The Globalization of Production? Firms source goods and services from locations around the globe to capitalize on national differences in the cost and quality of factors of production like land, labor, energy, and capital Companies can lower their overall cost structure improve the quality or functionality of their product offering 1-5 Why Do We Need Global Institutions? Global institutions help manage, regulate, and police the global marketplace promote...
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...Globalization What Is Globalization? The world is moving away from self-contained national economies toward an interdependent, integrated global economic system. Globalization refers to the shift toward a more integrated and interdependent world economy. Globalization has two facets: 1) the globalization of markets 2) the globalization of production 1) The Globalization Of Markets: The globalization of markets refers to the merging of historically distinct and separate national markets into one huge global marketplace. Ex: In many industries, it is no longer meaningful to talk about the “German market” or the “American market”. Instead, there is only the global market. Falling trade barriers make it easier to sell internationally. The tastes and preferences of consumers are converging on some global norm. Firms help create the global market by offering the same basic products worldwide. 2) The Globalization Of Production: The globalization of production refers to the 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 like land, labor, and capital Companies compete more effectively by lowering their overall cost structure or improving the quality or functionality of their product offering. The Emergence Of Global Institutions : Institutions are needed to: * help manage, regulate, and police the global marketplace * promote the establishment...
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...* Topics to be discussed: * What is International Business Environment? * Changing Pattern of International Management * Major Elements Affecting International Business * International Business Environment * The international business environment can be defined as the environment in different sovereign countries, with factors exogenous to the home environment of the organization, which influences decision-making on resource use and capabilities. * It involves three environments such as domestic, foreign and international. * Domestic environment * composed of all the uncontrollable forces originating in the home country that influence the firm’s life and development. * Foreign environment * composed of all the uncontrollable forces originating outside the home country that influence the firm. * the kinds of forces are the same as those in the domestic environment but their values often differ and changes in the values of foreign forces are at time more difficult so assess. * International Environment * interactions between the domestic environmental forces and the foreign environmental forces AND * interactions between the foreign environmental forces of two countries when an affiliate in one country does business with customers in another. * The Forces: * environment: all the forces surrounding and influencing life and development of the firm; they can be external or internal * uncontrollable (external)...
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...1. Introduction The World Trade Organisation (WTO) was formally made in January of 1995, and essentially supplanted the General Agreement on Tariffs and Trade (GATT), which had been in power subsequent to 1948, a couple of years after the Second World War (Study.com, 2015). The WTO is a multilateral establishment charged with directing rules for exchange among 145 official member countries. The United States and different members partaking in the Uruguay Round of Multilateral Trade Negotiations (1986-1994) required the arrangement of the WTO to encapsulate the new trade disciplines received amid those transactions (Wto.org,. 2015). This essay will firstly evaluate the roles of the WTO and then the challenges the World Trade Organisation face in the world economy and these how challenges are addressed. 2. The Role of the WTO in the Global Economy The World Trade Organisation exists to encourage the implementation, administration and operation, and additionally to facilitate the goals of the WTO agreements (Ruttley, P., Macvay, I. & George, C., 1998). Beyond this general purpose, the WTO has four particular functions. Firstly, to provide a meeting for arrangements among its members concerning their multilateral trade cognations in matters dealt with the accedences in the Annexes of the Marrakech Agreement for both current matters and any future understandings. The WTO may withal provide a forum for further negotiations among its members concerning their multilateral...
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...the opportunities that it is trying to exploit? True / False Questions 1. (p. 7) Globalization refers to the shift toward a more integrated and interdependent world economy. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 1-1 Topic: What Is Globalization? 2. (p. 7) Tastes and preferences of consumers in different nations are beginning to converge on some global norm. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 1-1 Topic: What Is Globalization? 3. (p. 7) A company has to be a major multinational corporation to facilitate, and benefit from, the globalization of markets. FALSE AACSB: Analytic BT: Knowledge Difficulty: Medium Learning Objective: 1-1 Topic: What Is Globalization? 4. (p. 7) In Germany, 98 percent of small and midsize companies have exposure to international markets. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 1-1 Topic: What Is Globalization? 5. (p. 8) Currently, the most global of markets are for industrial goods and materials that serve a universal need the world over. TRUE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 1-1 Topic: What Is Globalization? 6. (p. 8) As firms follow each other around the world, greater diversity replaces uniformity. FALSE AACSB: Analytic BT: Knowledge Difficulty: Easy Learning Objective: 1-1 Topic: What Is Globalization? 7. (p. 10)...
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...To what extent do organizations like the IMF, WTO, and World Bank challenge the nation state’s ability to shape domestic economic and social policy? Over the years, the roles and responsibilities of international organizations have been affected seriously by national, regional and global events, as well as the defining and changing features of globalization. On the one hand, their roles in international affairs first, after the Second World War in the 1940s and secondly after the cold war in the 1990s have increased significantly as globalization and governance issues raise the bar for global problems and challenges. Over the 1990s, the IMF and the World Bank expanded the breadth and depth of conditionality they apply to borrowing members, including conditions on domestic governance and the institutional framework of economic policy-making. At the same time, in 1995 the establishment of the World Trade Organization created a new set of binding commitments on member states which extend (and are being further extended) into many areas of domestic legislation. International economic institutions now address issues which were previously dealt with at the level of national government. In other words, decisions and policies taken at the international level are increasingly affecting groups and people within states. Where previously these people could hold their national governments to account for policies, they must now look to international institutions where the decisions...
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...Globalisation 1 Lecture/Chapter Topics • Chapter Introduction • Definition of Globalisation • Emergence of Global Institutions • Driving Forces of Globalisation • Changing Characteristics of Global Economy • Globalisation Debate • Managing in Global Marketplace Definition of Globalisation • • Globalisation: the trend towards a more integrated global economic system Effects of globalisation can be seen everywhere, for example: – – – – the cars people drive the food people eat the jobs people have the clothes people wear Definition of Globalisation • What is Globalisation? – Globalisation refers to the shift towards a more integrated and interdependent world economy. • Facets of Globalisation – Globalisation of Markets – Globalisation of Products – Emergence of Global Institutions Definition of Globalisation • The Globalisation of Markets – – The historically distinct and separate national markets are merging into one huge global marketplace in which the tastes and preferences of consumers in different nations are beginning to converge in some global norm. Examples of consumer products: Prada fashions, Sony Playstation video games, McDonald’s hamburgers (US), Nescafe coffee (Switzerland), Nokia mobile phones (Finland), IKEA furniture (Sweden) Definition of Globalisation • Globalisation of Production – Sourcing goods and services from different locations around the globe in an attempt to take advantage...
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...\ eighth edition Global Business Today CharlesW. L Hill University of Washington McGraw-Hill Irwin contents PREFACE xiii PART ONE Chapter One Introduction 4 What Is Globalization? 6 The Globalization of Markets 6 The Globalization of Production 7 The Emergence of Global Institutions 9 Drivers of Globalization 11 Declining Trade and Investmen t Barriers 11 The Role of Technological Change 14 The Changing Demographics of the Global Economy 16 The Changing World Output and World Trade Picture 16 The Changing Foreign Direct Investment Picture 18 The Changing Nature of the Multinational Enterprise 19 The Changing World Order 22 The Global Economy of the Twenty-First Century 23 The Globalization Debate 24 Antiglobalization Protests 24 Globalization, Jobs, and Income 26 Globalization, Labor Policies, and the Environment 28 Globalization and,National Sovereignty 29 Globalization and the World's Poor 30 Managing in the Global Marketplace 31 Key Terms 33 Chapter Summary 33 Critical Thinking and Discussion Questions 34 Research Task 34 Closing Case: Legal Outsourcing 35 Introduction and Overview 2 Globalization 3 PART TWO Chapter Two Country Differences 36 National Differences in Political Economy 37 Opening Case: Ghana: An African Dynamo 37 Introduction 38 Political Systems 39 Collectivism and Individualism 39 Democracy and Totalitarianism 42 Economic Systems 44 Market Economy 44 Command Economy 45 Mixed Economy 45 Legal Systems 46 Different Legal Systems 46 Differences...
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...first case the companies compete beetwen one another about customer, whereas in the second case about resource and conditions of buying it. At the same time companies compete for customers and resources because in order to buy resources they should sell products and to generate the product they should buy resources. Very impotortant is who competes (subject). That is why competition can occur among: - Blocks of nations (unions) like UE and the US; - National economies; - Companies; - Internal teams in company; - People (company’s employees) That is why range of competition can be different. We distinguish local competition, regional competition, national competition, international competition and global competition. Competition between countries is quite subtle to detect, but is quite evident in the World economy....
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...perspective known as transnational relations arose to question realism key assumptions of state as main and the only actor of world politics. This theory gave a new analytical framework to understand the international relations which was contrary to the state centric paradigm of realism. With complex interdependence as its central concept, this theoretical analysis advanced “synthesis of liberal + realist perspectives by constructing a way of looking at world politics and also the idea of institutionalism to foster cooperation”. It is asked how under conditions of complex interdependence world politics would be different than under realist conditions means this analysis ask to see “ what realism overlooked”. The phenomenon of Interdependence is not new; states have always been interdependent on each other for their economic functions and especially for security purposes. We have seen the complicated interdependence among states in the alliance system to achieve their political ends before First World War. The earliest example of interdependence comes from Norman Angell’s “The great illusion (1910) when he said the economic interdependence will minimize the occurrence of war on the basis of cost-benefit analysis.” Countries are dependent on each other for trade and transaction, they interact globally e.g. flow of money, goods, people and messages across international boundaries but all transactions among countries are not characterized by interdependence because??? Where there is reciprocal...
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...“The global factors influencing on business strategy” Content 1. Abstract 4 2. Introduction 4 3. Literature review 5 4. Research metrology 6 5. Strategy 7 5-1 - Export Markets 8 5-2 - International Markets 8 5-3 - International Competitiveness 9 5-4 - International trade 9 5-5 -Trade blocs 10 5-6- International strategy 10 5-6-1 Mergers and acquisitions 11 5-6-2 Alliance 12 5-6-3 Cost leadership 13 5-6-4 Joint venture 13 6. Global Factors: 14 6-1 -Political 14 6-2 -Social 15 6-3 -Economic 17 6-4 -Technological 18 6-5 - Legal 19 7. Conclusion 20 8. Reference 21-22 1-Abstract Successful global business strategy addresses the operational and executive issues enterprise face when looking internationally for few opportunities. Attend successful global operations to develop an action plan...
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...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 coffee), what type of cell phone they have and where it was made, where their car was design and manufactured, where the components for their computer was manufactured, and so on. Many students will be surprised at just how often international business affects their daily lives. Some will...
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...International Trade ECO/212 Introduction International trade has truly expanded to encompass most of the world over the past century. The countries of the world have seen that everyone can benefit from specializing in the production of a certain good or set of goods and by having skilled workers that provide services to others. This trade off in strengths and weaknesses help get some commodities to locations that would otherwise be unable to attain goods or services that they need. The world of trading between countries is ever changing with the advancement in technology that becomes available to countries. Pros and Cons of International Trade The importing and exporting of goods across the globe is regulated by the World Trade Organization (WTO). This, like many other organizations have multiple benefits and drawbacks for the parties involved beyond practical application of rules and policies. One major benefit of the WTO is that they allow for trading on neutral ground allowing neither of the parties involved to obtain an unfair advantage during the trade agreement process. Any disputes that arise between two or more trading parties are also handled by the WTO which is also a benefit of having the organization in place. The organization itself acts as a mediator or referee of sorts when it comes to the process of trade between nations across the globe. This type of organization also has drawbacks when it comes to certain real world application in certain aspect...
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...International Trade Simulation and Report Taruh Cravens, Melody Jones, Geneva George-Williams, Ruby Morgan, Nicole Southerland ECO/212 Blake Bennett International Trade Simulation and Report This paper is a team correlation on the knowledge gained from our course of study and how the concepts are applied, how international trade affects the U.S, economy, and addresses the four key factors from our weekly reading assignments that are shown in the stimulation. The simulation identified Rodamia’s bordering countries provide an opportunity for international trade and investments that could greatly benefit Rodamia. International trade with other countries would give consumers more choices in price and quality of goods. The domestic producers would increase production to meet market demands in other countries, producing more capital for investing in new avenues. The interaction of trade between the countries will make the countries more vibrant and wealthier. Limitations of international trade are placed in the form of tariffs, quotas, and regulations. These limitations offer protection in certain circumstances but can have negative if used to retaliate for reasons such as political differences (Colander, 2004). The simulation emphasized four key points from the team’s weekly reading assignments, including comparative advantage, the principle of increasing marginal opportunity, the protection possibility curve, and limitations on international trade...
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...Mgt 431 Through out this paper the writer will be discussing Human Resources and describing the changing role of HR management in response to trends in globalization, technology, diversity, e-business, and ethics. Human Resources by definition “are the management of the people in working organizations (encyclopedia Britannica Para 1).” Human resources job is to gather people whom posses a certain skill set in order to perform certain job functions required for the company. This process is done by recruiting and selecting desired candidates after the selection process has been conducted human resources is also required to train, evaluate, reward and promote qualified candidates. Securing, maintaining, and utilizing an effective work force, which organizations cannot survive without is what human resource management focuses on. By keeping in connection with the organization’s objectives and business strategies makes human resource a key to the success of a company. Maintaining a healthy work environment between company policies and individuals is another role of human resource. There are basic functions all managers perform which are planning, organizing, staffing, leading, and controlling. These represent what is often called the management process. Staffing, personnel management, or human resource management is the function for the organization to focus on today's workforce environment. It includes activities like recruiting, selecting, training, compensating...
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