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What is Globalization? Professor Lavender, CUNY, 3/2/2005.

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Presentation on theme: "What is Globalization? Professor Lavender, CUNY, 3/2/2005."— Presentation transcript:

1 What is Globalization? Professor Lavender, CUNY, 3/2/2005

2 What is Globalization? The creation of a global economy? The creation of a global culture? The concentration of power in a smaller number of hands and/or nations? The erasure of the borders that divide us?

3 McDonald’s as a Case Study As a major multinational corporation (MNC), McDonald’s operates 30,000 restaurants in 119 countries around the world. McDonald’s opens a new restaurant every three hours – 2/3 are located outside the U.S.

4 In any one day, McDonald’s… …serves 35 million customers. …opens 6 new restaurants outside the U.S. …prepares more than 6.8 million pounds of french fries. …employs nearly three million people worldwide.

5 McDonald’s Goes Global Local signage Use familiar logos with local language Adapt menu to cultural expectations of the local consumers

6 McThailand

7 McChina

8 McBali

9 McRussia

10 McJapan

11 McSudan

12 McCanada

13 McSaudi Arabia

14 Starbucks in the Forbidden City, China

15 Ronald McDonald’s Local Identity Japan: Donald McDonald Singapore: Uncle McDonald France: Replaced by Asterix the Gaul

16 McDonald’s Goes Global Uruguay – “McHuevo”: hamburger topped with a poached egg. Norway – “McLaks”: grilled salmon sandwich with dill sauce. Germany – beer. Israel – no cheeseburgers so kitchen stays kosher. India – “Maharaja Mac”: Big Mac with all lamb patties. Japan – Green Tea Shake Thailand – Sweet Corn Pie New Zealand – “Kiwiburger”: hamburger with a fried egg and slice of beet.

17 McDonald’s as a Globalization Icon Used by both advocates and opponents of globalization Thomas Friedman’s “Golden Arches Theory of Conflict Prevention” – “No two countries that both have a McDonald’s have ever fought a war against each other.” (The Lexus and the Olive Tree)

18 “Opening the new Iraqi McDonald’s” (based on Joe Rosenthal’s photo of the flag-raising at Iwo Jima, 1945) – a pro-Iraq War webpage

19 “Coming Soon to a Crater Near You” – an anti-Iraq War webpage

20 McMeasuring Globalization Global Policy Forum uses the expansion of McDonald’s to measure the degree of globalization Global Policy Forum, “McDonald’s Restaurants: Number by Region, 1991 & 1996”

21 “Burgernomics” Based on the theory of purchasing-power parity (PPP) – a dollar should buy the same amount in all countries Exchange rates between two countries should equalize prices of an identical good in each country (in this case, a Big Mac) “The Big Mac Index” is the exchange rate that would mean Big Macs cost the same everywhere.


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