1. Globalization

2. International Business 3e
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Describe globalization
Explain how globalization affects markets and production
Identify the drivers of globalization
Discuss the globalization debate
List types of firms in international business
Define the global business environment
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International Business 3e

3. International Business 3e
E-Biz Surprise
eBay expanded all types of product markets
Eli Lilly hired a virtual R&D “workforce”
Expedia moved travel booking online
Dell pioneered online buying of custom PCs
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International Business 3e

4. Advice of Global Managers
Know the customer
Emphasize global awareness
Develop world-class products
Market effectively
Improve logistics
Analyze problems correctly
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International Business 3e

5. International Business 3e
Globalization
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 3e

6. Benefits of Globalization
Globalization of markets
Reduces marketing costs
New market opportunities
Levels income stream
Globalization of production
Access low-cost labor
Acquire technical expertise
Obtain production inputs
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International Business 3e

7. Globalization Drivers I
Remove barriers to trade / investment
GATT
WTO
Regional trade agreements
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International Business 3e

8. Globalization Drivers II Technological Innovation
and videoconferencing
Better coordination and control
Internet, intranets and extranets
Improved communications and management
Transportation advancements
More efficient, dependable shipping
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International Business 3e

9. Globalization Then and Now
Highly mobile labor market
Fear of jobs moving abroad
Free-flowing capital and trade
Backlash among the disaffected
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International Business 3e

10. Challenges to Business
Physical security
Assess company vulnerability and create a disaster recovery plan
Digital security
Guard proprietary information and confidential communications
Reputational risk
Require ethical and lawful behavior from all employees and business partners
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International Business 3e

11. From Carnage to Civility
Rage
Violence
Carnage
Exclusion
Vs.
Reason
Legitimacy
Civility
Debate
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International Business 3e

12. International Business 3e
Jobs and Wages
Opponents
Eliminates jobs in developed nations
Forces wages lower in developed nations
Exploits workers in developing nations
Supporters
Increases wealth and efficiency
Generates labor market flexibility
Creates jobs in developed countries
Advances economies of developing nations
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International Business 3e

13. International Business 3e
Labor and Environment
Opponents
Globalization lowers labor standards
Weakens protection of the environment
Exploits workers in poor nations
Supporters
Investment raises labor standards
Open economies most environment friendly
Companies concerned for future markets
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International Business 3e

14. International Business 3e
Income Inequality
Inequality within nations
Poor people in developing nations benefit most from open economy
Inequality between nations
Nations open to world trade and investment grow faster than rich nations
Global inequality
Inequality has fallen, but experts disagree on the extent of the decline
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International Business 3e

15. International Business 3e
National Sovereignty
Opponents
Supranational institutions reduce autonomy of national, regional and local governments
Supporters
Globalization has benefited societies by helping to spread democracy worldwide
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International Business 3e

16. International Business 3e
Impact 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 3e

17. International Business Players
Multinational Corporation
Business that has direct investments abroad in multiple countries
Small Businesses and Entrepreneurs
Small companies and individuals becoming increasingly active in international trade and investment
Born-Global Firm
Takes a global perspective on its market and engages in international business from or near its inception
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International Business 3e

18. Global Business Environment
Globalization
International
National
Firm
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International Business 3e