1. Economic Environment of Business
Globalisation.

2. What do we mean by globalisation?
May mean different things to different people:
Economists
Rise in international trade or capital flows
Politicians
Process undermining the nation state
Sociologists
Global culture and media
Or – The emergence of global conflict?

3. What are the key elements of globalisation?
Shrinking space (beyond national boundaries)
Shrinking time – immediate impacts via improving communications
Disappearing borders – regional blocs etc.

4. Global integration may be shallow or deep:
Exchange of foodstuffs/materials for manufactured/finished goods
Or:
MNCs and fragmented production process via geographical relocation = cross-border, value-adding activities

5. Globalisation Tendencies
New markets, including deregulation
New actors (MNCs)
New rules, norms – human rights, environment etc.
New(faster) communication modes
Increase knowledge – greater global openness

6. Globalisation and Corporate Strategy:
Changing industry structure from technology change
Privatisation and deregulation
Internet technology
Environmental and economic pressure groups increasingly well organised

7. Other key issues Sovereignty Centralisation v decentralisation
Threats to the nation state
Autonomy
Authority
Legitimacy

8. Negative aspects of globalisation?
International terrorism and criminality
9/11 and World Trade Centre & 7/7/05 in London
Increased spread of illness
SARS / Bird Flu
Development of anti-global movements
Call for sustainable trade/liberalisation
“Americanisation” and US cultural influence

9. Summary New markets New actors New norms and rules
We established:
Globalisation is a process characterised by changes
in:
New markets
New actors
New norms and rules
New methods of communication
change in corporate strategy
Challenge to national sovereignty
Discontinuous competitive landscape
Multi-dimensional aspects of globalisation