wild ib5e ppt instructor 01
TRANSCRIPT
GlobalizationGlobalization
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
International Business 5e Chapter 1 - 2
• Describe the process of globalization
• Explain how globalization affects markets and production
• Identify two drivers of globalization
• Summarize the globalization debate
• List types of firms in international business
• Describe the global business environment
Chapter PreviewChapter Preview
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
International Business 5e Chapter 1 - 3
Globalization Involves Us AllGlobalization Involves Us All
We experience internationaltransactions daily
Imports and exports reacheven remote areas
Technology and e-bizpromote trade
Consumers and companiespull markets closer
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International Business 5e Chapter 1 - 4
International BusinessInternational Business
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
International Business 5e Chapter 1 - 5
GlobalizationGlobalization
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 5e Chapter 1 - 6
Benefits of GlobalizationBenefits of Globalization
GlobalizationGlobalizationof marketsof markets
GlobalizationGlobalizationof productionof production
• Reduces marketing costs
• New market opportunities
• Levels income stream
• Reduces marketing costs
• New market opportunities
• Levels income stream
• Access lower-cost labor
• Access technical expertise
• Access production inputs
• Access lower-cost labor
• Access technical expertise
• Access production inputs
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International Business 5e Chapter 1 - 7
Challenges to BusinessChallenges to Business
Physicalsecurity
Digitalsecurity
Reputationalrisk
Examine companyvulnerability andcreate a disaster
recovery plan
Guard proprietaryinformation and
confidentialcommunications
Require ethical andlawful behavior from
all employees andbusiness partners
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International Business 5e Chapter 1 - 8
Globalization Drivers IGlobalization Drivers I
Regional tradeRegional tradeagreementsagreements
GATTGATT
WTOWTO
Remove barriers to trade and investment
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International Business 5e Chapter 1 - 9
Trade Exceeds OutputTrade Exceeds Output
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International Business 5e Chapter 1 - 10
Globalization Drivers IIGlobalization Drivers IITechnological InnovationTechnological Innovation
Email and videoconferencing
Internet, intranets,and extranets
Transportationadvancements
Better coordination and control
Improved communications and management
More efficient, dependable
shipping
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International Business 5e Chapter 1 - 11
Measuring GlobalizationMeasuring Globalization
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International Business 5e Chapter 1 - 12
Globalization Then Globalization Then andand Now Now
Highly mobileHighly mobilelabor marketlabor market
Highly mobileHighly mobilelabor marketlabor market
Fear of jobs Fear of jobs moving abroadmoving abroad
Fear of jobs Fear of jobs moving abroadmoving abroad
Backlash amongBacklash amongthe disaffectedthe disaffected
Backlash amongBacklash amongthe disaffectedthe disaffected
Free-flowing Free-flowing capital and tradecapital and trade
Free-flowing Free-flowing capital and tradecapital and trade
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International Business 5e Chapter 1 - 13
From Anarchy to DebateFrom Anarchy to Debate
ViolenceViolenceViolenceViolence
Rage Rage Rage Rage
CarnageCarnageCarnageCarnage
ExclusionExclusionExclusionExclusion
LegitimacyLegitimacyLegitimacyLegitimacy
ReasonReasonReasonReason
CivilityCivilityCivilityCivility
DebateDebateDebateDebate
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International Business 5e Chapter 1 - 14
Jobs and WagesJobs and Wages
Eliminates jobs in developed nations
Lowers wages in developed nations
Exploits workers in developing nations
Increases wealth and efficiency everywhere
Generates labor market flexibility in developed countries
Advances economies of developing nations
SupportersSupportersOpponentsOpponents
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International Business 5e Chapter 1 - 15
Labor, Environment, & Labor, Environment, & MarketsMarkets
– 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
Opponents Supporters
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International Business 5e Chapter 1 - 16
Advice of Global ManagersAdvice of Global Managers
Communicate effectively
Know the customer
Emphasize global awareness
Market effectively
Monitor business environments
Analyze problems correctly
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International Business 5e Chapter 1 - 17
Income Inequality Income Inequality debate debate
Inequality within nationsPoor people in developing nations benefit most from
an open economy
Inequality between nationsNations open to world trade and investment grow faster
than rich nations
Global inequalityInequality has fallen, but experts disagree on the
extent of the decline
Income InequalityIncome Inequality
32
1
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International Business 5e Chapter 1 - 18
National SovereigntyNational Sovereignty
SupportersSupporters
Globalization has Globalization has benefited societies by benefited societies by
helping to spread helping to spread democracy worldwidedemocracy worldwide
OpponentsOpponents
Supranational Supranational institutions reduce institutions reduce
autonomy of national, autonomy of national, regional, and local regional, and local
governmentsgovernments
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International Business 5e Chapter 1 - 19
Impact on CultureImpact 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 5e Chapter 1 - 20
Culture Matters:Culture Matters:The Global ConsumerThe Global Consumer
Culture Matters:Culture Matters:The Global ConsumerThe Global Consumer
Material DesireMaterial DesireMaterial DesireMaterial Desire
A Force for GoodA Force for GoodA Force for GoodA Force for Good
Artistic InfluenceArtistic InfluenceArtistic InfluenceArtistic Influence
Deeper ValuesDeeper ValuesDeeper ValuesDeeper Values
Western ValuesWestern ValuesWestern ValuesWestern Values
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International Business 5e Chapter 1 - 21
International Business PlayersInternational Business Players
Business that has direct investments abroad in multiple
countries
Small companies and individuals becoming increasingly active in
international trade and investment
Adopts a global perspective and
engages in international business from or near
its inception
MultinationalCorporation
Small Businesses
and Entrepreneurs
Born Global Firm
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International Business 5e Chapter 1 - 22
How They Stack UpHow 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 5e Chapter 1 - 23
FactsFacts of Small Biz Exporting of Small Biz Exporting
Most exporters haveMost exporters havefewer than 50 employeesfewer than 50 employees
Most exporters haveMost exporters havefewer than 50 employeesfewer than 50 employees
Comprehensive help Comprehensive help is availableis available
Comprehensive help Comprehensive help is availableis available
Most products do notMost products do notneed an export licenseneed an export licenseMost products do notMost products do notneed an export licenseneed an export license
Export financingExport financingis availableis available
Export financingExport financingis availableis available
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International Business 5e Chapter 1 - 24
Global Business EnvironmentGlobal Business Environment
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International Business 5e Chapter 1 - 25
• Describe the process of globalization
• Explain how globalization affects markets and production
• Identify two drivers of globalization
• Summarize the globalization debate
• List types of firms in international business
• Describe the global business environment
Chapter ReviewChapter Review
GlobalizationGlobalization
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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