Business & Society ETLW 302 Tara Ceranic Salinas, PhD

Process of integrating the world through commerce, technology, culture and politics Trade Communications technology Human migration Credit access Efficiency Access to distant markets Risk Uncertainty Limited pricing power Imitation Declining $ flow across borders

What business best represents globalization to you?

Multinational Corporations (MNCs) Transnational Corporation or Multinational Enterprises UN estimates that there are over 60,000 in global economy Top 100 TNCs responsible for 14% of the sales of all

International Trade and Financial Institutions + NGOs These organizations were created in order to deal with issues caused by MNCs, particularly: Environmental risk Worker rights Labor practices Human rights Community development

World Bank (est. 1944) Dues paid by 184 member nations Selling AAA-rated bonds in the world's financial markets Shareholder-support: $178 billion in "callable capital” 2 branches:

International Bank for Reconstruction and Development (IBIRD) Aims to reduce poverty in middle-income and creditworthy poorer countries Promoting sustainable development through loans, guarantees, risk management products, and analytical and advisory services Raises most funds on international capital markets Original institution of World Bank

International Development Association (IDA) 40 Donor countries One of the largest sources of assistance for the world’s 78 poorest countries, 39 of which are in Africa. Single largest source of donor funds for basic social services in the poorest countries. No-interest loans 40% of World Bank lending

IMF (est. 1945) 187 countries contribute to its reserve ($333 billion) Mission: To foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty

World Trade Organization Established in 1994 at last meeting of General Agreement on Tariff and Trade (GATT): 153 members “Organization for liberalizing trade.” Negotiating forum Set of rules: legal ground rules for international commerce

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