1. Globalization and Regionalization David J. Boggs, Ph.D. Eastern Illinois University

2. My Childhood  Libraries and notebook paper  Telephones  Cold War  Typewriters  Import taxes  Travel

3. Globalization  Speed: fast  Government: democratic (?)  Economy: capitalistic (?)  Language: English  Technology: Internet  Competitors: everyone everywhere  Leader: USA (?)  Powers: multinationals  Currency: dollar (plus euro)

4. Some Terms  International Business  Imports  Exports  Globalization  GATT, WTO, World Bank, and IMF  Born-global  MNC or multinational corporation

5. Globalization Symbols  Satellite dish  Cargo carriers (ships)  Internet  CNN  Global brands

6. Global Brands  Coca Cola  McDonalds  Disney  Nokia  Sony  BMW

7. Elements of Globalization  Communication  Culture  Demographics  Economics  Politics and law  Technology  Transportation

8. Communication  English as the lingua franca  Mobile phones  Free and low-cost long distance calls  Internet  Media  Overnight mail

9. Culture  English Music Movies Television Sports Education Food

10. Demographics  Urbanization  Mobility  Family size  Sex and age distribution

11. Economics  Deregulation and trade liberalization  Privatization and competition for FDI  Harmonization of technical, professional and labor standards  Trade groups  Focus on innovation to achieve profits  Impacts on the skilled versus unskilled

12. Regional Economic Associations  EU  NAFTA  MERCOSUR  ANCOM or CAN  CARICOM  CIS  CACM  LAIA  APEC  ASEAN  ECOWAS

13. Politics  Democratization  International agreements –Trade –Investment –Intellectual property –Environment –Human rights –Labor –Defense

14. Technology  Intellectual property rights –Patents –Trademarks –Copyrights  Employee hiring  Conferences and trade shows  Reengineering

15. Transportation  Planes, trains, automobiles, trucks, and boats  Bigger, better, faster, more  More freedom for people, goods, and services to move about the globe  Communications technology substitutes for some travel

16. New Systems?  1990s: Globalization replaced the Cold War as the defining international system, with integration, rather than separation, as the guiding theme.  Today regionalism and the War on Terror seem to take precedence over globalization.

17. Important Issues and Trends  EU expansion  Growth of developing countries  Demographics  Wider access to communications, information, technology, investing and finance  Weakening of traditional nation states  Move from industrial to information economy  Corruption as a continuing problem  Resource scarcity?

18. The Electronic Herd (Thomas Friedman)  Anonymous stock, bond, and currency traders and MNC investors  Individuals, firms, governments, pension funds, hedge funds  “The herd in not infallible”  Democratization of finance, technology, and information

19. The Electronic Herd  Supermarkets of NYC, Chicago, London, Tokyo, Frankfurt, Hong Kong, Singapore, Bombay, Sao Paulo, etc  Stocks, bonds (everything is securitized), currencies, commodities  Options, forwards, futures, leveraging  High and low risks, short and long term, to hedge or to speculate

20. Discussion  How is international business different from domestic business?  Why do firms engage in international business?  What are benefits and harms from globalization?  Name countries that are more “global” than others. Why do you think they are?