Introduction to Global Business

(continuation)

The Rise of Globalization

Module 2 Part 2
 Institutional Structure and
Its Impact on Globalization
• What is institutional structure?
– Institutions are the rules, enforcement mechanisms, and
organizations that support market transactions.
• Impact of globalization:
– Demand for transparency, openness, and disclosure from political
institutions
– Need for adaptive institutions that provide societal stability and
incentives for private investment
– Increasing expectations of accountability and responsibility for
those who govern
– Importance of independent judiciary and free press
 Effective Policy Measures That
Promote Globalization

Good
governance

Ex: Singapore

Effective
Competitive Property
markets
Policy rights
Measures

Anticorruption
policies

Ex: New Zealand

Impact of Information Technology
on Globalization

Take a few
moments to think
about what life
was like ten or
even five years
ago.
Impact of Information Technology
on Globalization

Expanding the
The Digital Global Use of
Generation Information
Technology

“Leapfrogging”
The Digital into the
Divide Myth Internet and
Cell Phone Era
 The Globalization Controversy
• Arguments against globalization:
– Job losses and income stagnation

– Loss of local control over economic policies and developments

– Disappearance of old industries

– Related erosion of communities

Making Globalization Work for All

Globalization’s Winners
• China
• India
• Brazil

Globalization’s Losers
• Central Asia
• Much of Africa
• North Korea
 End of Module 2 (IBT)

Thank you!

For r the
m answe s in
ass ative on
ess questi n
men e di scussio
t th
board.

© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
 Reference:

Gaspar, J.E. et al. (2015). Introduction to Global Business: Understanding the International
Environment and Global Business Function, 2nd Edition, Cengage Learning Asia.

© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.