INTERNATIONAL MANAGEMENT: INTRODUCTION INDUSTRIALIZATION MODERNIZATION GLOBALIZATION

Services Manufacturing Agriculture

Industrialization & Modernization

What is Globalization? (Globalization  liberalization.)

Definitions: Hill: the shift toward a more integrated and interdependent world economy IMF: growing economic interdependencies of countries through increasing transactions in goods, services, capital, information, technology Kofi Annan: a web of commerce, communication and co-operation WTO: an irreversible economic evolution (not a political option) History: (since the beginning of time, through trade and travel) Major accelerations: pre-World War I expansion of world trade post-World War II growth of trade (and FDI) under the auspices of GATT Information Age

Implications : Three major issues are now under investigation. 1economic growth and income distribution In theory, both rich and poor benefit: The rich can reach the global market with their innovations, and the poor share in global production and technology transfer. Yet globalization seems to widen inequalities. 2macroeconomic stability In theory, trade in financial assets will bring benefits analogous to trade in goods: better ability to borrow/lend and diversify risk. important exceptions again (eg, see “Capital controversies”) 3economic governance “The national marketplace is losing its salience relative to international markets. This is causing a sea change in the role of the nation-state.” (Jeffrey Sachs, “Unlocking the Mysteries of Globalization”)  Coming soon: The Nobody-in-Charge Society “One of the consequences of globalization is to underscore the role of national governments as vision-setters and institution-builders; as smoothers of the course of economic change; and as creators of the right ethos...” (John Dunning, “Governments, Globalization and International Business”)

Globalization is facilitated by the establishment of world-wide systems and universal standards and norms

TECHNOLOGICAL SYSTEMS Standardization/Compatibility/Comparability in Communication Transportation Infrastructure SYSTEMS WHICH FACILITATE GLOBALIZATION - 1

ECONOMIC SYSTEMS Homogenization and Standardization of Business Practices Markets Structures Macro-Economic Systems International Trading Practices SYSTEMS WHICH FACILITATE GLOBALIZATION - 2

POLITICAL SYSTEM A System of Nation States who proclaim Democratic Principles create Democratic Institutions interact with each other on the basis of International Laws, Treaties & Conventions SYSTEMS WHICH FACILITATE GLOBALIZATION - 3

SOCIO-CULTURAL SYSTEMS English as a 1st or 2nd Language Global Media Products Global Information Systems Global Systems of Higher Education SYSTEMS WHICH FACILITATE GLOBALIZATION - 4

Trends / forecasts: The new workplace “Thanks to the pressures of globalization, the business trends that have made the workplace so receptive to the young in America are spreading to other parts of the world. That applies not just to technology, but to all the other characteristics of the new, informal office culture as well.” (The Economist Survey of the Young, 23 Dec 2000) 1.New technologies beyond even current imagination Eg, resumes will be implanted in employees bodies. 2.Jobs will demand knowledge of information systems. 3.Women (degreed) will shatter the glass ceiling. 4.The end of single-sex jobs 5.Teen entrepreneurship 6.Old-age entrepreneurship 7.Traditional workers sometimes will be squeezed out. 8.Telecommuting 9.Corporate hotels 10.Retail stores close. 11.Growing cultural diversity --goodbye weekends and traditional holidays?