2. Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 OHT 1.1 International Business

3. Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 OHT 1.2 Exports to GDP ratios (%), 1978–2002 197819902002 High income economies 182022 Developing economies 162033

4. Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 OHT 1.3 Increasing liberalisation of global markets National regulatory change in fdi regimes DateNumber of regulatory changes Number more favourable to fdi Number less favourable to fdi 1991 1997 2001 82 158 206 80 144 194 2 14 12

5. Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 OHT 1.4 Measuring International Competitiveness Relative Unit Labour Cost (RULC) Relative Labour Cost Relative Exchange Relative Labour Productivity Rate

6. Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 OHT 1.5 CountryTotal labour costs ($ per hour) Total labour costs ($ per hour) Index: UK = 100 Labour productivity (Index: UK = 100) Mexico Korea France UK Japan US Germany 2.3 8.1 15.9 16.1 19.6 20.3 22.9 14.3 50.3 98.8 100.0 121.8 126.1 142.2 40.3 43.5 135.5 100.0 92.0 125.9 127.4 Labour costs and labour productivity 2002

7. Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 OHT 1.6 Globalisation Shrinking space Shrinking time Disappearing borders New markets New actors New rules and norms New tools of communication

8. Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 OHT 1.7 Perspectives on globalisation Subject based: –economists; –political scientists; –sociologists; –international relations specialists Universalisation versus particularisation Homogenisation versus differentiation Integration versus fragmentation Hyperglobalists versus transformationalists

9. Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 OHT 1.8 Globalisation and the nation state Loss of competence Loss of autonomy Loss of legitimacy

10. Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 OHT 1.9 Ranking multination enterprises (MNEs) Transnationality Index (TNI) TNI is the average of three ratios: –Foreign sales : total sales –Foreign employment: total employment –Foreign assets : total assets

11. Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 OHT 1.10 World’s top five multinationals ranked by TNI (and foreign assets ratio) Ranking TNI Foreign assets CompanyCountryIndustryTNI (%) 139Rio TintoUKMining98.2 249Thomson Corp CanadaMedia95.3 324ABBSwitzerlandMachinery/ equipment 94.9 418Nestle SASwitzerlandFood/ beverages 94.7 531BATUKTobacco94.7

12. Wall and Rees: International Business, 2nd edition © Pearson Education Limited 2004 OHT 1.11 Average TNI (%)Number of MNEs Economy1990200019902000 EU56.767.14849 North America 41.262.93025 Japan35.535.91216 All Economies 51.157.8100 TNI for the world’s largest 100 MNEs in their home economies 1990 and 2000