1. What do the following businesses have in common?

2. TOPIC: Topic 1: Business Organization and Environment
LESSON TITLE: Globalization
COMPETENCY FOCUS:
Entrepreneurship (S4): To develop your entrepreneurial skills in preparing a realistic proposal for a new business start-up. You will understand the process a business will have to go through when starting up, including the underlying principles of starting a business.  
[IB Learner Profile Development: Open-minded]
Learning Objectives
By the end of the lesson, you should be able to…
LO1) To define the term ‘globalzation’ 
LO2) To explain why businesses may become multinational using real life examples
LO3) To analyse the role played by multinationals in the global business environment.
SMSC: You will assess the organisational culture of businesses in terms of fundamental structure, purpose and strategy development.
CRITICAL THINKING KEY:
Knowledge Application Analysis Evaluation

3. Globalisation
Globalisation is the creation of global markets, global businesses and global products.
We are fast becoming a ‘world economy’.
Globalisation means that:
The clothes we buy are made abroad
Call centres are located abroad
We can import best quality bananas from abroad

4. Globalisation Why become a multinational?
Become closer to main markets
Lower costs of production
Lower labour rates
Cheaper rent and site costs
Government grants/incentives
Avoid import restrictions
Access to local natural resources
Exchange rate advantages

5. Globalisation
The problems with globalisation: Watch the video clip and make notes about the problems of globalisation.

6. Globalisation Technology Communication networks Internet access
Integration of economies are made possible by:
Technology
Communication networks
Internet access
Growth of economic cooperation – trading blocs (EU, NAFTA, etc.)
Collapse of ‘communism’
Movement to free trade

7. Globalisation Corporate Expansion:
Multi-national or trans-national corporations (MNCs or TNCs) – businesses with a headquarters in one country but with business operations in a number of others.
Characteristics:
Expanding revenue
Lowering costs
Sourcing raw materials
Controlling key supplies
Control of processing
Global economies of scale

8. Key terms
Research the following key terms & provide your own definitions for each: Multi-national companies Globalisation Free international trade Tariff Quota International Competitiveness Emerging Markets

9. Research Research & make your own notes on the following:
The World Trade Organisation (WTO)
Regional Trade Blocs

10. Exam Practice
Read case study on pg. 443 (Raffo) and respond to the following questions. [40mins]

11. Reflection (TOK)
To what extent is globalisation a threat to national culture?