1 The nature of Globalization, Business and IT Technology and globalization go hand-in-hand. Globalization unleashes technology, which in turn drives firms to plan production and sales on a global basis. Technology changes the work we do and in nearly all cases, the jobs created by it demand more education and training. It also changes the way business operates by transforming relationships between suppliers, producers, retailers and customers. (Ross, 1993, p. xii) between suppliers, producers, retailers and customers. (Ross, 1993, p. xii) Dr. Paolo R. Cerotti ISYS 2394 Session 2 – Semester 2 ISYS 2394 Session 2 – Semester

2 Reasons Why You Might Like this class 1. Multi-culture ((Technology/Strategy/Business/Organisations) 2. Some readings more than a year old (sometimes really good ideas last more than a year) 3. Course is continually evolving 4. Considerable work load (But consistent with credits) 5. High expectations 6. Pictures of staff with famous people 7. Collaborative learning environment 8. No Exam

3 Paul’s Teaching Assignments: RMIT University - Melbourne Bentley University – Boston University of Maryland – Washington DC Old Dominion University – Norfolk, Virginia KAIST – Korea Seoul National University - Korea Fudan University – China Shanghai Institute of Foreign Trade - China Trisakti University – Indonesia SIM – Singapore HK Polytechnic – Hong Kong Universita’ D’Urbino - Italy

4 Paul’s Research Globalization Globalization Globalization and IT Globalization and IT International Business International Business Social Value Creation Social Value Creation Social Technologies Social Technologies Luxury Business Luxury Business

5 Paul’s Awards 2013 – Pro-Vice Chancellor’s Award for Teaching Excellence in ISYS 2394 andBUSM 2112/ 2013 – Pro-Vice Chancellor’s Award for Teaching Excellence in ISYS 2394 andBUSM 2112/ 2013 – Dean Teaching and Learning Award – Peer Partnership 2013 – Dean Teaching and Learning Award – Peer Partnership 2012 – Dean Teaching and Learning Award – Peer Partnership Excellence 2012 – Dean Teaching and Learning Award – Peer Partnership Excellence 2012 – Pro- Vice Chancellor’s Award for Teaching Excellence 2012 – Pro- Vice Chancellor’s Award for Teaching Excellence 2011 – Pro- Vice Chancellor’s Award for Teaching Excellence 2011 – Pro- Vice Chancellor’s Award for Teaching Excellence 2010 – Vice Chancellor’s Award for Teaching Excellence – Internationalisation – For Leveraging professional expertise and networks to integrate intercultural and international contexts in curriculum and learning opportunities to produce globally competent graduates – Vice Chancellor’s Award for Teaching Excellence – Internationalisation – For Leveraging professional expertise and networks to integrate intercultural and international contexts in curriculum and learning opportunities to produce globally competent graduates – Australian Learning and Teaching National Citation Award - for Outstanding Contributions to Student Learning in area of internationalisation of the curriculum – Australian Learning and Teaching National Citation Award - for Outstanding Contributions to Student Learning in area of internationalisation of the curriculum – RMIT University Teaching Award - for outstanding contribution to Teaching in the category of Team Teaching – RMIT University Teaching Award - for outstanding contribution to Teaching in the category of Team Teaching – RMIT University Vice Chancellor’s Award – 2007 Australian Learning and Teaching Award Winner – RMIT University Award Winner – ALT Award for Australian University Teaching in the category of Outstanding Contribution to Student Learning 2007 – RMIT University Vice Chancellor’s Award – 2007 Australian Learning and Teaching Award Winner – RMIT University Award Winner – ALT Award for Australian University Teaching in the category of Outstanding Contribution to Student Learning

6 Paul’s Experiences Grants – In excess of $275,00.00 Grants – In excess of $275,00.00 Hospitality\Fashion industry – Italy and Australia Hospitality\Fashion industry – Italy and Australia Education industry – Asia, North America and Europe Education industry – Asia, North America and Europe Travelling since 6 years of age and still learning and still doing homework. Travelling since 6 years of age and still learning and still doing homework.

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Where are we now? Global activity strengthened during the second half of 2013, as anticipated in the October 2013 World Economic Outlook (WEO). Activity is expected to improve further in 2014–15, largely on account of recovery in the advanced economies. Global growth is now projected to be slightly higher in 2014, at around 3.7 percent, rising to 3.9 percent in 2015, a broadly unchanged outlook from the October 2013 WEO. Global activity strengthened during the second half of 2013, as anticipated in the October 2013 World Economic Outlook (WEO). Activity is expected to improve further in 2014–15, largely on account of recovery in the advanced economies. Global growth is now projected to be slightly higher in 2014, at around 3.7 percent, rising to 3.9 percent in 2015, a broadly unchanged outlook from the October 2013 WEO. United States is expected to be 2.8 percent in 2014, up from 1.9 percent in Following upward surprises to inventories in the second half of 2013, the pickup in 2014 will be carried by final domestic demand. United States is expected to be 2.8 percent in 2014, up from 1.9 percent in Following upward surprises to inventories in the second half of 2013, the pickup in 2014 will be carried by final domestic demand. The euro area is turning the corner from recession to recovery. Growth is projected to strengthen to 1 percent in 2014 and 1.4 percent in 2015, but the recovery will be uneven. The euro area is turning the corner from recession to recovery. Growth is projected to strengthen to 1 percent in 2014 and 1.4 percent in 2015, but the recovery will be uneven. United Kingdom has been buoyed by easier credit conditions and increased confidence. Growth is expected to average 2¼ percent in 2014–15, but economic slack will remain high. United Kingdom has been buoyed by easier credit conditions and increased confidence. Growth is expected to average 2¼ percent in 2014–15, but economic slack will remain high. In Japan, growth is now expected to slow more gradually compared with October 2013 WEO projections. In Japan, growth is now expected to slow more gradually compared with October 2013 WEO projections. 10

Where are we now? Overall, growth in emerging market and developing economies is expected to increase to 5.1 percent in 2014 and to 5.4 percent in Growth in China rebounded strongly in the second half of 2013, due largely to an acceleration in investment. Overall, growth in emerging market and developing economies is expected to increase to 5.1 percent in 2014 and to 5.4 percent in Growth in China rebounded strongly in the second half of 2013, due largely to an acceleration in investment. Growth in India picked up after a favorable monsoon season and higher export growth and is expected to firm further on stronger structural policies supporting investment. Growth in India picked up after a favorable monsoon season and higher export growth and is expected to firm further on stronger structural policies supporting investment. 11

12 What has changed in business since we went Global? Let’s develop a list Let’s develop a list Are these changes universal? Are these changes universal? What/Who is driving these changes? What/Who is driving these changes?

13 The Internet – the panacea for all of the troubles in the world? Is the internet the great revolutionary tool of the 2ist century? Is the internet the great revolutionary tool of the 2ist century? Or …is it just a reformation of business process using IT? Or …is it just a reformation of business process using IT? A diagram showing the degree to which different management functions must assume a global or local role. A diagram showing the degree to which different management functions must assume a global or local role. (Diagram by Prof. Eleanor Westney. Maps courtesy of used with permission.) (Diagram by Prof. Eleanor Westney. Maps courtesy of used with permission.)

14 Let’s talk about the triumvirate Business/Globalization/I.T. –Health –Education –Tourism –Banking –Government –Logistics –Food –Manufacturing –Entertainment –Services

15Trends What are the new business trends in 2014? What are the new business trends in 2014? Does I.T. give value to business? Does I.T. give value to business? Value chain model. (Diagram by Prof. Stuart Madnick.) Value chain model. (Diagram by Prof. Stuart Madnick.)

16 Who is calling for changes? Who is calling for trends? Global Business Global Business World Economic Forum World Economic Forum World Trade Organization World Trade Organization World Bank World Bank United Nations United Nations International Monetary International Monetary Fund Fund Universities Universities Global Customers Global Customers Are YOU??? Are YOU???

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18 Definitions Globalization (or globalization[1]), is an umbrella term for a complex series of economic, social, technological, cultural and political changes seen as increasing interdependence and interaction between people, communities, countries and companies in disparate locations all over the world. Globalization (or globalization[1]), is an umbrella term for a complex series of economic, social, technological, cultural and political changes seen as increasing interdependence and interaction between people, communities, countries and companies in disparate locations all over the world. “There are 152,921 books in English in print on the subject of globalization. Add to these hundreds in French, German, Russian, Arabic, Hindi, Chinese, Spanish and other languages. (Amazon.com Search April 2013) “There are 152,921 books in English in print on the subject of globalization. Add to these hundreds in French, German, Russian, Arabic, Hindi, Chinese, Spanish and other languages. (Amazon.com Search April 2013)

19 Definitions The term "globalization" is used to refer to these collective changes as a process, or else as the cause of (typically) negative and turbulent change. The distinct uses include: The term "globalization" is used to refer to these collective changes as a process, or else as the cause of (typically) negative and turbulent change. The distinct uses include: * Economically and socially positive: As an engine of commerce; one which brings an increased standard of living — prosperity to developing countries and further wealth to First World and Third World countries. This view claims that economic prosperity brings about social prosperity. * Economically and socially positive: As an engine of commerce; one which brings an increased standard of living — prosperity to developing countries and further wealth to First World and Third World countries. This view claims that economic prosperity brings about social prosperity. * Economically and socially negative: As an engine of "corporate imperialism"; one which tramples over the human rights of developing societies, claims to bring prosperity, yet often simply amounts to plundering and profiteering. Negative effects include cultural assimilation via cultural imperialism, the export of artificial wants, and the destruction of local society and culture. * Economically and socially negative: As an engine of "corporate imperialism"; one which tramples over the human rights of developing societies, claims to bring prosperity, yet often simply amounts to plundering and profiteering. Negative effects include cultural assimilation via cultural imperialism, the export of artificial wants, and the destruction of local society and culture.

20 Definitions A typical definition can be taken from the International Monetary Fund, which defines globalization as the growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services, free international capital flows, and more rapid and widespread diffusion of technology. A typical definition can be taken from the International Monetary Fund, which defines globalization as the growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services, free international capital flows, and more rapid and widespread diffusion of technology. Globalize means to make worldwide in scope or application, and the globalization of trade means freer and more intense worldwide trade across national borders. Technology helps to make globalization possible. Because computers can be interlinked across companies, countries and continents, information is no longer weighed down by geography or time. Globalize means to make worldwide in scope or application, and the globalization of trade means freer and more intense worldwide trade across national borders. Technology helps to make globalization possible. Because computers can be interlinked across companies, countries and continents, information is no longer weighed down by geography or time. All definitions appear to agree that globalization has economic, political, cultural, and technological aspects that may be closely intertwined. All definitions appear to agree that globalization has economic, political, cultural, and technological aspects that may be closely intertwined.

21 Economic Globalization Economic globalization, (i.e. the aggregate change we observe in our factories, storefronts, indeed generally across our economies and lifestyles) is caused by four fundamental forms of capital movement throughout the global economy. The four important capital flows are: – Human Capital (i.e. Immigration, Migration, Emigration, Deportation, etc.) – Financial Capital (i.e. Aid, Equity, Debt, Credit & Lending, etc.) – Resource Capital (i.e. Energy, Metals, Minerals, Lumber, etc.) – Power Capital (i.e. Security Forces, Alliances, Armed Forces, etc.)

22 Views about Globalization Stiglitz argues that globalization has opened up world trade and created more economic development….is this the case? Stiglitz argues that globalization has opened up world trade and created more economic development….is this the case? Has globalization improved the competitiveness landscape? Has globalization improved the competitiveness landscape?

23 Globalization Nearly every world leader and leading academic and Nobel peace prize winner has defined globalization during the past 20 years, for former President Clinton it was the ‘world without walls’, for Joseph Stiglitz it is ‘the removal of barriers to free trade and the closer integration of national economies’, for Prime Minister Blair ‘it is inevitable and irresistable’, for analysts Marshall McLuhan it is a global village, for President Bush it is ‘ties and of trade and trust’. Nearly every world leader and leading academic and Nobel peace prize winner has defined globalization during the past 20 years, for former President Clinton it was the ‘world without walls’, for Joseph Stiglitz it is ‘the removal of barriers to free trade and the closer integration of national economies’, for Prime Minister Blair ‘it is inevitable and irresistable’, for analysts Marshall McLuhan it is a global village, for President Bush it is ‘ties and of trade and trust’. “Globalization is neither new or a folly’, said Amartya Sen, but a global movement of ideas, people, technology and goods from one region to others, benefiting the people at large”(Sen, 2001, n.p.) “Globalization is neither new or a folly’, said Amartya Sen, but a global movement of ideas, people, technology and goods from one region to others, benefiting the people at large”(Sen, 2001, n.p.)

24 Globalization in Practice “In 2003, some 25,000 US tax returns were done in India. In 2004, the number was 100,000. In 2005, it was roughly 400,00. In a decade you will assume that your accountant has outsourced the basic preparation of your tax returns-if not more” “In 2003, some 25,000 US tax returns were done in India. In 2004, the number was 100,000. In 2005, it was roughly 400,00. In a decade you will assume that your accountant has outsourced the basic preparation of your tax returns-if not more” Thomas L. Friedman, 2005, page 13

25 Globalization in Practice Dalian in China has become to the Japanese what Bangalore is to America. Dalian in China has become to the Japanese what Bangalore is to America. The Japanese are outsourcing their call centers to the Chinese. The Japanese are outsourcing their call centers to the Chinese. The Chinese are in Dalian are taking Japanese as a second language. The Chinese are in Dalian are taking Japanese as a second language. The Chinese are so focused on leading the world in the next century that they are ready to brush up on their Japanese and take all the work Japan can outsource. The Chinese are so focused on leading the world in the next century that they are ready to brush up on their Japanese and take all the work Japan can outsource. (Thomas L. Friedman 2005)

26 Mayor Xia’s ideas on Globalization Chinese youngsters are more ambitious than Japanese or American youngsters in recent years. Chinese youngsters are more ambitious than Japanese or American youngsters in recent years. (Thomas L. Friedman, 2005) Eat your dinner because there are millions of Chinese students starving to death. Eat your dinner because there are millions of Chinese students starving to death. Eat your rice there are millions of Eat your rice there are millions of Capitalist children starving to death. Education Education

27 Mayor Xia’s ideas on Globalization “It is like building a building. Today the USA is the designer, the architect and the developing countries are the bricklayers for the buildings. “It is like building a building. Today the USA is the designer, the architect and the developing countries are the bricklayers for the buildings. But one day I hope we will be the architects.” (Thomas L. Friedman, 2005) Will this happen ? But one day I hope we will be the architects.” (Thomas L. Friedman, 2005) Will this happen ?

28 Friedman’s conversation with Jaithirth Rao in India “We can predict our future. But we are behind you. You are defining the future. America is always on the edge of the next creative wave…..” “We can predict our future. But we are behind you. You are defining the future. America is always on the edge of the next creative wave…..” (Thomas L. Friedman, 2005, page 15) (Thomas L. Friedman, 2005, page 15)

29 Globalization of Innovation – A Change Satyam Cherukuri at Sarnoff speaks of the end of the old model of a single American or European multinational handling all the elements of the product development cycle from its own resources. Satyam Cherukuri at Sarnoff speaks of the end of the old model of a single American or European multinational handling all the elements of the product development cycle from its own resources. More and more American and European companies are outsourcing significant research and development tasks to India, Russia, China, South America and Eastern Europe and at times to Cambodia, Vietnam and Laos. This is what we mean when we speak of the “globalization of innovation”. (Thomas L. Friedman, 2005) More and more American and European companies are outsourcing significant research and development tasks to India, Russia, China, South America and Eastern Europe and at times to Cambodia, Vietnam and Laos. This is what we mean when we speak of the “globalization of innovation”. (Thomas L. Friedman, 2005)

Guarded Globalization (Bremmer 2012) Pre 2008 – Coca Cola countries, Lockheed Martin – 805 revenue from US government and 95% workforce in the US Pre 2008 – Coca Cola countries, Lockheed Martin – 805 revenue from US government and 95% workforce in the US Post 2008 – Slow moving, selective, nationalism and regionalism mix. Post 2008 – Slow moving, selective, nationalism and regionalism mix. Strategic importance of industries at home and in countries they wish to enter Strategic importance of industries at home and in countries they wish to enter 30

31 State Capitalism Russia, India and Brazil Russia, India and Brazil Control the wealth that markets generate – governmetns play a dominant public sector companies and politically loyaly corporations. Control the wealth that markets generate – governmetns play a dominant public sector companies and politically loyaly corporations. EG. 73 Chinese companies listed in 2012 Fortune Global 500, 65 are state owned. EG. 73 Chinese companies listed in 2012 Fortune Global 500, 65 are state owned. Russia – 50% are state owned Russia – 50% are state owned UAE – oil companies and wealth fund dominate UAE – oil companies and wealth fund dominate

State Capitalism Google, Facebook and Yahoo which may, and has been used by the US government to read s around the world can be seen as a form of State Capitalims. Google, Facebook and Yahoo which may, and has been used by the US government to read s around the world can be seen as a form of State Capitalims. Gathering Data – Is this valuable? Gathering Data – Is this valuable? Greater scrutiny for US IT companies Greater scrutiny for US IT companies Will this inhibit Globalization? Will this inhibit Globalization? 32

33 Ten Forces that Flattened the World Berlin Wall 11/9/89 Berlin Wall 11/9/89 Amatya Sen (Indian Nobel Prize Economist), said “ The Berlin Wall was not only a symbol of keeping people inside East Germany, it was a way of preventing a kind of global view of our time… Amatya Sen (Indian Nobel Prize Economist), said “ The Berlin Wall was not only a symbol of keeping people inside East Germany, it was a way of preventing a kind of global view of our time… If I celebrate the fall of the wall it is because I am convinced of how much we can learn from each other. Most knowledge is learning from others across the border.” Discuss If I celebrate the fall of the wall it is because I am convinced of how much we can learn from each other. Most knowledge is learning from others across the border.” Discuss

34 Ten Forces that Flattened the World The New Age of Connectivity: when the web went around and Netscape went public – 8/9/95. The New Age of Connectivity: when the web went around and Netscape went public – 8/9/95. Work Flow Software- Read and Discuss pages Work Flow Software- Read and Discuss pages Harnessing the Power of Communities Harnessing the Power of Communities Outsourcing Y2K – Read and discuss pages Outsourcing Y2K – Read and discuss pages

35 Off-shoring “ Every morning in Africa, a gazelle wakes up It knows it must run faster than the fastest lion it will be killed It knows it must run faster than the fastest lion it will be killed Every morning a lion wakes up Every morning a lion wakes up It knows it must outrun the slowest gazelle or it will starve to death. It knows it must outrun the slowest gazelle or it will starve to death. It doesn’t matter whether you are a lion or a gazelle. It doesn’t matter whether you are a lion or a gazelle. When the sun comes up, you better start running” When the sun comes up, you better start running” Why are we all running? Why are we all running?. China has become an unparalleled country for off-shoring, it has 160 cities with a population of one million or more. China has become an unparalleled country for off-shoring, it has 160 cities with a population of one million or more. Can India beat China in off-shoring or will it be the Middle East or South America that will win this race or a trading block of Chinese culture nations? Can India beat China in off-shoring or will it be the Middle East or South America that will win this race or a trading block of Chinese culture nations? CHINDIA ????????? CHINDIA ?????????

36 Ten Forces that Flattened the World Supply-Chaining – eg HP will sell 400,00 computers in one day during the Christmas season, throughout 4000 Wal-Mart stores. Supply-Chaining – eg HP will sell 400,00 computers in one day during the Christmas season, throughout 4000 Wal-Mart stores. Insourcing – Read and discuss pages Insourcing – Read and discuss pages Informing – Google, Yahoo, MSN Web Search Informing – Google, Yahoo, MSN Web Search The Steroids – Digital, Mobile, Personal and Virtual The Steroids – Digital, Mobile, Personal and Virtual

37 Views about Globalization/Innovation Thinking Garelli has mapped the world competitiveness landscape. Garelli has mapped the world competitiveness landscape. 1. Competitiveness is not the accumulation of certainties 1. Competitiveness is not the accumulation of certainties 2. Competitiveness is developed through ‘trial and error’ 2. Competitiveness is developed through ‘trial and error’ 3. Strong competitiveness models accept internal criticism 3. Strong competitiveness models accept internal criticism 4. Competitiveness also thrives on thinking the unthinkable 4. Competitiveness also thrives on thinking the unthinkable 5. The future is not what it used to be 5. The future is not what it used to be Who wins? Who wins? Who loses? Who loses? Why? Why?

38 Views about globalization Legrain argues that globalization is blurring the borders between nation states….is all the world one? Legrain argues that globalization is blurring the borders between nation states….is all the world one? Do you feel at home anywhere in the world? Do you feel at home anywhere in the world? Is it globalization or Americanization or Californiazation? Is it globalization or Americanization or Californiazation?

39 Views about globalization Giddens argues that globalization creates new economic and cultural zones e.g. around HK, Nth Italy. Silicon Valley, Middle East and South America. Giddens argues that globalization creates new economic and cultural zones e.g. around HK, Nth Italy. Silicon Valley, Middle East and South America.

40 Views about globalization Singer argues that since globalization the gap between the rich and the poor countries has increased….why? Singer argues that since globalization the gap between the rich and the poor countries has increased….why? However, on another measure life expectancy has increased in developing countries from 55 to 66 yrs! However, on another measure life expectancy has increased in developing countries from 55 to 66 yrs!

41 An emerging problem! The new business conflict: IT consolidation vs. globalization by Alan Saldich (2006) The new business conflict: IT consolidation vs. globalization by Alan Saldich (2006) The world is getting smaller, companies have operations all over the place, and IT is getting more powerful by the month. You would think that connecting a global enterprise seamlessly would be easier than ever, but in fact it's getting more difficult in some ways. Why? The world is getting smaller, companies have operations all over the place, and IT is getting more powerful by the month. You would think that connecting a global enterprise seamlessly would be easier than ever, but in fact it's getting more difficult in some ways. Why?

42 USA and President Obama No. 1 Economic Superpower No. 1 Economic Superpower Image, politics, wars, attitude, finance Image, politics, wars, attitude, finance Stimulus package Stimulus package Austerity measures Austerity measures Rescue of major industries Rescue of major industries Automobile, Banks, Sub-prime issue Automobile, Banks, Sub-prime issue Some degree of recovery Some degree of recovery

43 USA – Home of Globalization ? Home of H and H Home of H and H The American Century The American Century The Barbie Case study The Barbie Case study

44 Globalization Where is it? Globalization is happening everywhere and it is not only in the world of IT!!! Globalization is happening everywhere and it is not only in the world of IT!!!

45 Globalization of Gambling USA USA Las Vegas Las Vegas Atlantic City Atlantic City Reno Reno Macau Macau Australia Australia Virtual gambling Why is gambling a global phenomenon? Why is gambling a global phenomenon? Does IT support this global business? Does IT support this global business?

46 The Globalization of Sushi 723n 723n 723n 723n Where do we find Sushi? Where do we find Sushi? Why is it a global phenomenon Why is it a global phenomenon Global Supply Chain Global Supply Chain Role of IT for Sushi Role of IT for Sushi The Sushi Economy: Globalization and the Making of a Modern Delicacy The Sushi Economy: Globalization and the Making of a Modern Delicacy by Sasha Issenberg by Sasha IssenbergSasha IssenbergSasha Issenberg

47 Globalization of Icons KGYxrI KGYxrI KGYxrI KGYxrI Why is this Icon a global phenomenon? Why is this Icon a global phenomenon? Why are business icons more recognisable that ever before? Why are business icons more recognisable that ever before?

48 Globalization of Sport ‘The United States of America is truly the only melting pot in the world. It is the only country the blends so many different ethnic and culturally diverse individuals from all parts of the world, from all walks of life. One of the things I cherish most about sports is that no matter who you are, what you look like, what you believe in, all of that is put to the side if we are cheering for the same team…the only colors that matter are the home team. You will see the rich next to the poor, black, white, and Asians all cheering together. This is what makes sports truly remarkable’. ‘The United States of America is truly the only melting pot in the world. It is the only country the blends so many different ethnic and culturally diverse individuals from all parts of the world, from all walks of life. One of the things I cherish most about sports is that no matter who you are, what you look like, what you believe in, all of that is put to the side if we are cheering for the same team…the only colors that matter are the home team. You will see the rich next to the poor, black, white, and Asians all cheering together. This is what makes sports truly remarkable’. American Football and the Superbowl American Football and the Superbowl Soccer Basketball Soccer Basketball Cricket Rugby Cricket Rugby Tennis Karate Tennis Karate Golf Golf Swimming Swimming The Summer and Winter Olympics The Summer and Winter Olympics

49 Globalization of Lingua Franca English is the language of business, computing and aviation English is the language of business, computing and aviation Mandarin Mandarin Spanish Spanish Arabic Arabic English English Hindi Hindi

50 Globalization of Education Thousands of students travel each year around the globe for education Thousands of students travel each year around the globe for education Boston – the new Athens Boston – the new Athens Magic names: Harvard, Yale, UCLA, Georgetown, Oxford, Cambridge, Trinity College, St. Andrews, Chulalangkorn, Beijing and Beijing Uni, Fudan University, KAIST, La Bocconi, Sorbonne etc. Magic names: Harvard, Yale, UCLA, Georgetown, Oxford, Cambridge, Trinity College, St. Andrews, Chulalangkorn, Beijing and Beijing Uni, Fudan University, KAIST, La Bocconi, Sorbonne etc.

51 Globalization of Movies Hollywood Hollywood Bollywood – ‘Slumdog Millionaire’ Bollywood – ‘Slumdog Millionaire’ Asian Film Industry Asian Film Industry Spanish Film Industry Spanish Film Industry Globalization of Music Globalization of Music

52 Globalization of Fashion T-Shirts, Jeans, Baseball caps, Polo shirts T-Shirts, Jeans, Baseball caps, Polo shirts American streetwear American streetwear Italian Fashion Italian Fashion French Fashion French Fashion Japanese Fashion Japanese Fashion Must have bags and accessories Must have bags and accessories

53 Globalization of Food McDonalds McDonalds KFC KFC Pizza Pizza Chinese Food Chinese Food Italian Food Italian Food

54 Globalization and IT of Romance and Dating Dating and IT Dating and IT MySpace is the new booty call” MySpace is the new booty call” “I had this guy leave me a voice mail at work, so I called him at home, and then he ed me to my BlackBerry, and so I texted to his cell, and now you just have to go around checking all these different portals just to get rejected by seven different technologies. It’s exhausting.” He’s just not that into you” “I had this guy leave me a voice mail at work, so I called him at home, and then he ed me to my BlackBerry, and so I texted to his cell, and now you just have to go around checking all these different portals just to get rejected by seven different technologies. It’s exhausting.” He’s just not that into you” Digital Dumping Digital Dumping Chat roulette Chat roulette Social Technologies – Facebook, Twitter, Blogs Social Technologies – Facebook, Twitter, Blogs

55 Globalization and Business IT Where is it happening? Where is it happening? Is it only in the USA? Is it only in the USA?

56 China China 2 nd highest foreign exchange reserves $432billion China 2 nd highest foreign exchange reserves $432billion Domestic savings of $2.5trillion Domestic savings of $2.5trillion Setting the pace in the global economy, expected Setting the pace in the global economy, expected No. 2 Economic Power in the World No. 2 Economic Power in the World China ranked number 2 in world purchasing power. China ranked number 2 in world purchasing power.

China Establishes international business norms and rules – A mix of Socialism with Chinese characteristics – a new mode of Globalization. Establishes international business norms and rules – A mix of Socialism with Chinese characteristics – a new mode of Globalization. 57

58 Micro-regions go global – Italy Italy – Region of Emiglia Romagna – known as the food bowl of Italy. Italy – Region of Emiglia Romagna – known as the food bowl of Italy. Exports pasta, cheese, wine, confectionery etc. Exports pasta, cheese, wine, confectionery etc. Modena – Lamborghini, Maserati, Balsamic Vinegar Modena – Lamborghini, Maserati, Balsamic Vinegar Maranello – Ferrari – sales in China Maranello – Ferrari – sales in China Parma – Parmesan Cheese Parma – Parmesan Cheese Carpi – Knitwear for Armani, Versace, Gucci etc Carpi – Knitwear for Armani, Versace, Gucci etc

59 Italy Bologna – Packaging Industries, Shoes – home of Bruno Magli, Rosetti,Industrial Machinery etc. Bologna – Packaging Industries, Shoes – home of Bruno Magli, Rosetti,Industrial Machinery etc. Vicenza – Jewellery – Bvlgari, Pomellato etc Vicenza – Jewellery – Bvlgari, Pomellato etc Sassuolo – Ceramic Tiles Sassuolo – Ceramic Tiles Parma – Ham etc. Machinery Parma – Ham etc. Machinery Forli – Confectionery – Flamigni Forli – Confectionery – Flamigni Faenza – Handpainted porcelain Faenza – Handpainted porcelain Ravenna – Mosaic tiles Ravenna – Mosaic tiles

60 Italy Towns work with the rest of the world. Towns work with the rest of the world. Extremely competitive Extremely competitive Italy’s taxation laws favours small companies especially mom and pop shows – less than 15 employees Italy’s taxation laws favours small companies especially mom and pop shows – less than 15 employees High level of specialization High level of specialization Clusters of co. making one article eg. buckles, buttons, shoe laces, embroidery etc. Clusters of co. making one article eg. buckles, buttons, shoe laces, embroidery etc.

61 Italy Niche production Niche production Italian achieve global dominance in supply of high end, price inelastic products. Italian achieve global dominance in supply of high end, price inelastic products. Thrives in a global economy Thrives in a global economy Survives the challenge from China of low production cost. Survives the challenge from China of low production cost. Global appetite for luxury goods – high standard of manufacture, craftsmanship, high prices = desirable product Global appetite for luxury goods – high standard of manufacture, craftsmanship, high prices = desirable product

62 Italy Luxury goods sell on brand, high recognition, conspicuous consumption and brand loyalty. Luxury goods sell on brand, high recognition, conspicuous consumption and brand loyalty. French and English luxury brands use Italy for production of apparel, bags and shoes – Chanel/Dior/Hermes/Burberry etc. uses Italy for scarves, shoes etc. French and English luxury brands use Italy for production of apparel, bags and shoes – Chanel/Dior/Hermes/Burberry etc. uses Italy for scarves, shoes etc. Italians too small to globalize Italians too small to globalize Defeated the globalization tidal wave and the China phenomena by Specializing. Defeated the globalization tidal wave and the China phenomena by Specializing. Can all industries do this? Can all industries do this?

63 Surviving globalization Italian towns survive in the global economy by specialising and maintaining the ability to price high. Italian towns survive in the global economy by specialising and maintaining the ability to price high. High quality. High quality. Nurturing the ‘Made in Italy’. Nurturing the ‘Made in Italy’. Romance, History and Culture of Italy Romance, History and Culture of Italy Case study – Salvatore Ferragamo Case study – Salvatore Ferragamo Producing items for which there is an inelastic demand and thus escaping the Chinas of this world. Producing items for which there is an inelastic demand and thus escaping the Chinas of this world.

64 Finland, Norway and Denmark Trailblazer in telecommunications Trailblazer in telecommunications Nokia TeliaSonera Nokia TeliaSonera R&D in software engineering, data security and the Linux computer operating system R&D in software engineering, data security and the Linux computer operating system World Economic Forum declared Finland the most competitive country in the world in 2002 and 2003 World Economic Forum declared Finland the most competitive country in the world in 2002 and 2003 First in networked connectivity and compatibility First in networked connectivity and compatibility Most responsive to IT and e-business opportunities. Most responsive to IT and e-business opportunities.

65 Multinationals in Cambodia Cambodia is at the start of Globalization Cambodia is at the start of Globalization Multinationals in Phnom Penh Multinationals in Phnom Penh Multimillion dollar contracts with Adidas, Columbia, Nautica, Nike and Speedo Multimillion dollar contracts with Adidas, Columbia, Nautica, Nike and Speedo One factory worth $4million USD One factory worth $4million USD 90% female– 10% male 90% female– 10% male Salary for machinists $75.00USD a month Salary for machinists $75.00USD a month

66 Cambodia and IT Staff of 4000 Staff of 4000 Investment by Chinese Industrialists Investment by Chinese Industrialists Owner Chinese/US Owner Chinese/US Fabrics from Taiwan, Thailand, USA and Europe Fabrics from Taiwan, Thailand, USA and Europe High level of IS infrastructure High level of IS infrastructure Design studio in the USA sends designs to Cambodia Design studio in the USA sends designs to Cambodia

67 Cambodia and global business UN Ethics Creed in every section in English and Cambodian UN Ethics Creed in every section in English and Cambodian ISO 9001 ISO 9001 Safety regulations Safety regulations Motivational cards around the factory “ Keep our factory clean we can make it” Motivational cards around the factory “ Keep our factory clean we can make it” All staff over 18 years of age All staff over 18 years of age Managers says “ I have to be a good manager so my staff can be good workers and we will all benefit”. Managers says “ I have to be a good manager so my staff can be good workers and we will all benefit”.

68 India and Globalization India – 500 million people under the age of 25 – What does this mean for India? India – 500 million people under the age of 25 – What does this mean for India? India and mobile phones – India and mobile phones – 2002 – 6.5 million 2002 – 6.5 million 2009 – 506 million 2009 – 506 million 2015 Estimates – 1.04billion 2015 Estimates – 1.04billion –Source (Kunai Bajaj, Managing Director of BDA Consultancy)

69 Russia, Globalization and a Free Economy Russia – a new frontier for global business Russia – a new frontier for global business Wealthy Russians – taste of luxury goods Wealthy Russians – taste of luxury goods Immigration to Londongrad Immigration to Londongrad Capitalism at work – GFC in , but the IMF is more optimistic about it and expects a 1.5-percent growth of the GDP. Capitalism at work – GFC in , but the IMF is more optimistic about it and expects a 1.5-percent growth of the GDP.

70 Globalization and South America Petrobas - 38% of the value of BM&BOVESPA Petrobas - 38% of the value of BM&BOVESPA Brazil 10 th biggest economy - aircraft, Brazil 10 th biggest economy - aircraft, electronics, cars, ethanol, textiles, footwear, iron ore, steel, coffee, orange juice, soybean and beef electronics, cars, ethanol, textiles, footwear, iron ore, steel, coffee, orange juice, soybean and beef Industries in South America Industries in South America Car Manufacturing Car Manufacturing Tourism Tourism Coffee Coffee Drugs Drugs

71 The Arab Economies in a Changing World Dubai meltdown Dubai meltdown Trouble in the Middle East Trouble in the Middle East What next for U.A.E.? What next for U.A.E.? Lebanon ??? Lebanon ??? Oil Oil Tourism Tourism Economic downturn in late Economic downturn in late

72 Japan and Globalization Golden age of Japanese globalization 1980’s – mid 1990’s Golden age of Japanese globalization 1980’s – mid 1990’s Japanese Manufacturing Japanese Manufacturing Japanese Auto makers Japanese Auto makers Japanese technology Japanese technology Giants in global business: Toyota, Sony, Giants in global business: Toyota, Sony, Recent problems at Toyota – Class action suits in the USA Recent problems at Toyota – Class action suits in the USA Natural Disaster in Japan 2011 Natural Disaster in Japan 2011 Aging population Aging population

73 Globalization and the United States of Europe Fortress Europe - EU Fortress Europe - EU Countries affected by the GFC Countries affected by the GFC GreeceBritain GreeceBritain PortugalIreland PortugalIreland SpainIceland SpainIceland Italy Italy France France

The Dark Side of Globalization Human Trafficking Human Trafficking Counterfeit Goods Counterfeit Goods Drugs Drugs Arms Arms Slavery Slavery Unethical Working Conditions Unethical Working Conditions Corruption Corruption Conflicts around the world – Ukraine and Gaza Conflicts around the world – Ukraine and Gaza Malaysian Airlines disaster Malaysian Airlines disaster 74

75 Blood Diamonds and Globalization m/main.html m/main.html m/main.html m/main.html Tiffany & Co.

76 The Bottom Billion Paul Collier 2007 Why the poorest countries are failing? Why the poorest countries are failing? Millenium development goals Millenium development goals Africa, Central Asia and parts of South America Africa, Central Asia and parts of South America

77 Making Globalization work for the least developed countries 2.5 billion people live on less than $2.00USD a day 2.5 billion people live on less than $2.00USD a day veloped_countries.htm veloped_countries.htm ‘Globalization and exclusion trap’ ‘Globalization and exclusion trap’ LDCs are not homogenous – influence insignificant LDCs are not homogenous – influence insignificant How do we make ‘G’ work for LDCs? How do we make ‘G’ work for LDCs?

78 The next phase The next phase of globalization is not going to be more Americanization, but more “glocalization”, more and more local content (web and free technology) made global. The next phase of globalization is not going to be more Americanization, but more “glocalization”, more and more local content (web and free technology) made global. Thomas L. Friedman, Chinese Finding their Voice, International Herald Tribune, Oct. 22/23, Thomas L. Friedman, Chinese Finding their Voice, International Herald Tribune, Oct. 22/23, 2005.

79 The Road to Prosperity for all? Capitalism Magazine says, "Anti- globalization protesters can rail all they like against the evils of capitalism... Wealth is the only remedy for poverty, and capitalism is the only real way to create wealth." Capitalism Magazine says, "Anti- globalization protesters can rail all they like against the evils of capitalism... Wealth is the only remedy for poverty, and capitalism is the only real way to create wealth."