1. Chapter 1 Globalization

2. International Business 4e
Chapter Preview
Describe globalization
Explain how globalization affects markets and production
Identify the drivers of globalization
Discuss the globalization debate
List types of firms in international business
Define the global business environment
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International Business 4e

3. Globalization Involves Us All
We experience international
transactions daily
Imports and exports reach
even remote areas
Technology and e-biz
promote trade
Consumers and companies
pull markets closer
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International Business 4e

4. International Business
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International Business 4e

5. Globalization of production International Business 4e
Trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies
Globalization of markets
Convergence in buyer preferences in markets around the world
Globalization of production
Dispersal of production activities worldwide to minimize costs or maximize quality
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International Business 4e

6. Benefits of Globalization
of markets
Globalization
of production
Reduces marketing costs
New market opportunities
Levels income stream
Access low-cost labor
Access technical expertise
Access production inputs
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International Business 4e

7. Advice of Global Managers
Know the customer
Emphasize global awareness
Develop world-class products
Market effectively
Improve logistics
Analyze problems correctly
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International Business 4e

8. Globalization Drivers I
Regional trade
agreements
GATT
WTO
Remove barriers to trade
and investment
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International Business 4e

9. International Business 4e
Trade Exceeds Output
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International Business 4e

10. Globalization Drivers II Technological Innovation
and videoconferencing
Internet, intranets,
and extranets
Transportation
advancements
Better coordination and control
Improved communications and management
More efficient, dependable shipping
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International Business 4e

11. International Business 4e
Top 20 Global Nations
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International Business 4e

12. Globalization Then and Now
Highly mobile
labor market
Fear of jobs
moving abroad
Free-flowing
capital and trade
Backlash among
the disaffected
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International Business 4e

13. Challenges to Business
Physical
security
Digital
Reputational
risk
Examine company
vulnerability and
create a disaster
recovery plan
Guard proprietary
information and
confidential
communications
Require ethical and
lawful behavior from
all employees and
business partners
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International Business 4e

14. International Business 4e
From Anarchy to Debate
Rage
Reason
Violence
Legitimacy
Carnage
Civility
Exclusion
Debate
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International Business 4e

15. International Business 4e
Jobs and Wages
Opponents
Supporters
Increases wealth and
efficiency
Generates labor market
flexibility
Creates jobs in
developed countries
Advances economies
of developing nations
Eliminates jobs in
developed nations
Forces wages lower
in developed nations
Exploits workers in
developing nations
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International Business 4e

16. International Business 4e
Labor and Environment
Opponents
Supporters
Globalization lowers
labor standards
Weakens protection of
the environment
Exploits workers in
poor nations
Investment raises
labor standards
Open economies most
environment friendly
Companies concerned
for future markets
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International Business 4e

17. Income Inequality debate1
Inequality within nations
Poor people in developing nations benefit most from
an open economy 2 3
Inequality between nations
Nations open to world trade and investment grow faster than rich nations
Global inequality
Inequality has fallen, but experts disagree on the extent of the decline
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International Business 4e

18. International Business 4e
National Sovereignty
Opponents
Supranational institutions reduce autonomy of national, regional, and local governments
Supporters
Globalization has benefited societies by helping to spread democracy worldwide
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International Business 4e

19. International Business 4e
Impact on Culture
Opponents
Destroys cultural diversity
Homogenizes our world
Bankrupts local small businesses
Supporters
Specialize and trade to obtain other goods
Import cultural goods from other nations
Protects deeper moral and cultural norms
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International Business 4e

20. Culture Matters: Is Resistance Futile?
The Same Everything?
…or Cultures Flourishing?
Values Gone for Good?
…or a Force for Good?
Finding Common Ground
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International Business 4e

21. International Business Players
Business that has direct investments abroad in multiple countries
Small companies and individuals becoming increasingly active in international trade and investment
Takes a global perspective on its market and engages in international business from inception
Multinational
Corporation
Small Businesses
and Entrepreneurs
Born-Global Firm
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International Business 4e

22. International Business 4e
How They Stack Up
Comparing revenue of the world's 10 most global firms to the gross domestic product of nations
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International Business 4e

23. Global Business Environment
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International Business 4e

24. International Business 4e
Chapter Review
Describe globalization
Explain how globalization affects markets and production
Identify the drivers of globalization
Discuss the globalization debate
List types of firms in international business
Define the global business environment
© Prentice Hall, 2008
International Business 4e