1. Globalization Chapter 1
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2. Global Telecommunications
1-1
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3. Globalization
The shift towards a more integrated and interdependent world economy.
Two components:
The globalization of markets.
The globalization of production.
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4. Global Drivers Positive Negative Technology Open Markets
Economic Integration
Peace
Corporate Strategy
Global Focus
Culture
Market Barriers
National Barriers
War
Corporate Strategy
Local Focus
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5. Globalization of Markets
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6. Global Production Swan Optical Manufacturing Design 1-5
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7. Growth of World Trade and World Output
1950=100
Figure 1.1
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8. Impact of GATT Tariff Rates
Average Tariff Rates on Manufactured Products % of Value
Table 1-1 in text
Table 1.1
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9. Figure 1.2 1-8 ©The McGraw-Hill Companies, Inc., 2000

10. The Changing Pattern of World Output and Trade
Table 1.2
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11. Percentage Share of Total FDI Stock 1980-1996
Figure 1.3
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12. FDI Inflows 1980-1996 $B Figure 1.4 1-11
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13. The National Composition of the Largest Multinationals
Of the Top 260 in 1973 Of the Top 500 in 1997
United States 126 (48.4%) (32.4%)
Japan 9 (3.5%) (25.2%)
Britain 49 (18.8%) 34 (6.8%)
France 19 (7.3%) 42 (8.4%)
Germany 21 (8.1%) 41 (8.3%)
Table 1.3
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14. Globalization - Pro Lower prices for goods and services.
Economic growth stimulation.
Increase in consumer income.
Creates jobs.
Countries specialize in production of goods and services that are produced most efficiently.
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15. Globalization - Con
Destroys manufacturing jobs in wealthy, advanced countries.
Wage rates of unskilled workers in advanced countries declines.
Companies move to countries with fewer labor and environment regulations.
Loss of sovereignty.
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16. International vs Domestic Business
Countries are different.
Range of problems are wider and more complex.
Government intervention in trade and investment creates problems.
International investment is impacted by different currencies.
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17. Sovereignty and the WTO
“Under the new system, many decisions that affect billions of people are no longer made by local or national governments but instead, if challenged by any WTO member nation, would be deferred to a group of unelected bureaucrats sitting behind closed doors in Geneva.” -Ralph Nader-
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18. Differences Between International and Domestic Businesses
Countries are different.
The range of problems are wider and more complex.
The intervention of governments that may limit international trade and investment.
The need to convert into different currencies.
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