LESSON 1 – GLOBALIZATION  The convergence of the personal computer,

fiber-optic Internet connections, and software

What Is Globalization? has created a “flat-world platform.”
 Globalization refers to the integration of  This platform allows small groups and
goods, services, and culture among the nations individuals to go global.
of the world.
 The world has shrunk from size “small” to size
 We have been experiencing globalization since “tiny.”
the days of European colonization.
 Advances in telecommunication and IT Technologies and Globalization
transportation technologies accelerated
globalization.  The graphical user interface for personal
computers
 The Internet has made all nations
next-door neighbors.  The Internet infrastructure
 The open source movement
The Network Society  Mobile technologies

 The Rise of the Network Society, 1996.
 We are now into this network society, where
we are all connected on a global scale.
 “it is an economy with the capacity to work as
a unit in real time on a planetary scale.”
(Castells, 2000).
 By 2005 Friedman demonstrated:
The World Is Flat.
 The three eras of globalization
 Friedman unpacks the impacts that the
personal computer, the Internet, and
communication software have had on
business, specifically the impact they have had
on globalization.
 Globalization 1.0
 Globalization 2.0
 Globalization 3.0
Globalization 1.0
 Occurred from 1492 until about 1800.
 The introduction of software to automate and
integrate business processes.
- Software that allows people to work together
more easily
- Software that allows different software
packages and databases to integrate with
each other more easily.
- i.e. payment processing systems and shipping
calculators
Advantages of Global Firms
 The new era of globalization allows any
business to become international.
 Advantages of global firms:
- The ability to locate expertise and labor
around the world.
- The ability to operate 24 hours a day.
- A larger market for their products.

 Globalization was centered around countries. Challenges of Global Firms

 Infrastructure differences.
 It was about how much horsepower, wind
 Labor laws and regulations.
power, and steam power a country had and
how creatively it was deployed.  Legal restrictions.
 The world shrank from size  Language, customs, and preferences.
“large” to size “medium.”
 International shipping.
Globalization 2.0  Cultural differences.
 Occurred from about 1800 until 2000.

 Interrupted only by the two World Wars. The Digital Divide

 The dynamic force driving change was  The Internet is creating a separation between
multinational companies. those who have access to this global network
 The world shrank from size “medium” to size and those who do not.
“small.”  This separation is called the “digital divide”
 Globalization 3.0
 Current era
Digital Divide that could prevent certain categories of
people— those from low-income households, senior
citizens, single-parent children, the undereducated,
minorities, and residents of rural areas — from
receiving adequate access to the wide variety of
resources offered by computer technology.
(ACM Code of Ethics)
 The digital divide can occur between countries,
regions, or even neighborhoods.
 In many US cities, there are pockets with little
or no Internet access, while just a few miles
away high-speed broadband is common.
 Solutions to the digital divide have had mixed
success over the years.
- One laptop per child
- Wi Max networks
- Cyber “café” (Coffeehouses with
Internet services)
 Another view of the problem was proposed by
Nielsen (2006).
 This author breaks the digital divide into three
stages:
 The economic divide
 The usability divide
 The empowerment divide
Economic Divide
 What is usually called the digital divide is, in
Nielsen’s terms, the economic divide.
 The idea that some people can afford to have
a computer and Internet access while others
cannot.
 Hardware is cheaper today than in the pass.
 In the future computers will be cheaper and
more powerful (Moore’s Law.)
 Nielsen suggest that this cost is not going to be
an issue in the future.
Usability Divide
 “technology remains so complicated that
many people couldn’t use a computer even if
they got one for free.”
 Even for those who can use a computer,
accessing all the benefits of having one is
beyond their understanding.
 This problem is particularly evident with low
literacy and senior persons.
 Some authors present this problem by
separating “digital natives” VS. “digital
immigrants.”
 We know how to solve this problem,
but the solutions is not cost-effective (Nielsen)
Empowerment Divide
 Empowerment divide is the most difficult to
solve.
 It is concerned with how we use technology to
empower ourselves.
 Very few users truly understand the power
that digital technologies can give them.
 Researchers report that very few people
contribute content to the Internet.
 Few users use advance search
 Many people will limit what they can do online
by accepting the basic default settings of their
computers
 Users do not work to understand how
they can truly be empowered.
LESSON 2 – HISTORICAL BACKGROUND OF
GLOBALIZATION
LESSON 3 - CORE FEAUTURES OF GLOBALIZATION  Growth of economic cooperation – trading
blocs (EU, NAFTA, etc.)
Core Features of Globalization  Collapse of ‘communism’
 Liberalisation
 Movement to free trade
 Free trade Trade versus Aid?
 Benefits of Trade:
 Globalisation of Economic Activity
 Increased choice
 Liberalisation of Import-Export System  Greater potential for growth
 Privatisation  Increase international economies of scale
 Greater employment opportunities
 Increased Collaborations

 Economic Reforms  Disadvantages of trade:
 Increase in gap between the rich and the poor

Globalisation  Dominance of global trade by the rich, northern

hemisphere countries

 Definition:  Lack of opportunities for the poor to be able to

have access to markets
 An economic phenomenon?
 Exploitation of workers and growers
 A social phenomenon?
Corporate Expansion
 A cultural phenomenon?  Multi-national
- The movement towards the expansion of economic or trans-national corporations (MNCs or TNCs) –
and social ties between countries through the spread businesses with
of corporate institutions and the capitalist philosophy a headquarters
that leads to the shrinking of the world in economic in one country but with business operations in a
terms. number of others.

Characteristics:
 Expanding revenue
 Lowering costs
 Sourcing raw materials
 Controlling key supplies
 Control of processing
 Global economies of scale

Corporate Domination
 Key Issues:
 Damage to the environment?
 Exploitation of labour?
 Monopoly power
 Economic degradation
 Non-renewable resources
 Damage to cultures
Integration of Economies
 The increasing reliance of economies on each other
Shell and Nike’s activities have come under severe criticism in
 The opportunities to be able to buy and sell in any some quarters.
country in the world

 The opportunities for labour and capital to locate Other Issues:

anywhere in the world  Accountability
of Global businesses?
 The growth of global markets in finance
 Increased gap between rich and poor fuels potential
Made possible by: terrorist reaction
 Technology
 Ethical responsibility of business?
 Communication networks
 Efforts to remove trade barriers
 Internet access
LESSON 4 – BENEFITS OF GLOBALIZATION
Access to New Cultures
- Globalization makes it easier than ever to access
foreign culture, including food, movies, music, and art.
This free flow of people, goods, art, and information is
the reason you can have Thai food delivered to your
apartment as you listen to your favorite UK-based artist
or stream a Hollywood movie.
The Spread of Technology and Innovation
- Many countries around the world remain constantly
connected, so knowledge and technological advances
travel quickly. Because knowledge also transfers so fast,
this means that scientific advances made in Asia can be
at work in the United States in a matter of days.
Lower Costs for Products
- Globalization allows companies to find lower-cost ways
to produce their products. It also increases global
competition, which drives prices down and creates a
larger variety of choices for consumers. Lowered costs
help people in both developing and already-developed
countries live better on less money.
Higher Standards of Living Across the Globe
- Developing nations experience an improved standard
of living—thanks to globalization. According to the
World Bank, extreme poverty decreased by 35% since
1990. Further, the target of the first Millennium
Development Goal was to cut the 1990 poverty rate in
half by 2015. This was achieved five years ahead of
schedule, in 2010. Across the globe, nearly 1.1 billion
people have moved out of extreme poverty since that
time.
Access to New Markets
- Businesses gain a great deal from globalization,
including new customers and diverse revenue streams.
Companies interested in these benefits look for flexible
and innovative ways to grow their business
overseas. International Professional Employer
Organizations (PEOs) make it easier than ever to employ
workers in other countries quickly and compliantly. This
means that, for many companies, there is no longer the
need to establish a foreign entity to expand overseas.
Product Development and New Revenue Streams
- By accessing new markets, you also inevitably develop
your products and services in new ways. This is one of
the greatest pros of globalization. When branching out
to different markets, businesses are often required to
adapt their offerings to meet local demand. While this
may seem like more work, it is a great opportunity for
innovation. By building successful products and services,
and a solid customer base, you can increase your
revenue streams beyond national or state borders.
Access to New Talent
- In addition to new markets, globalization allows
companies to find new, specialized talent that is not
available in their current market. For example,
globalization gives companies the opportunity to
explore tech talent in booming markets such
as Berlin or Stockholm, rather than Silicon Valley. Again,
International PEO allows companies to compliantly
employ workers overseas, without having to establish a
legal entity, making global hiring easier than ever.
Sharing Knowledge, Technology, and Culture
- Another one of the brilliant effects of globalization is
that sharing has become the norm. Knowledge,
information, technologies, and cultural practices and
values are being shared across the globe. This includes
business practices also. While we are a far cry still from
a multicultural utopia of global businesses, sharing and
creating global partnerships has never been easier.
Developing Universal Standards
- While this may sound like whitewashing a complex
issue, globalization has had the effect of helping set
some universal standards. Through knowledge sharing,
basic industry standards have been set and international
bodies are working to set standards for labour and
employment law, as well as tax regulation. The OECD,
for example, drafted the Model Tax Convention in 2017
to help authorities and businesses, understand when
businesses are liable to pay corporate taxes and how
they can prepare when expanding internationally.
Access to a Diverse Talent Pool
- Taking your pick of job candidates from an incredibly
diverse talent pool is a benefit of globalization with
immediate rewards. If your company is hiring remotely,
you can choose according to skillset, progressive
behaviours like adaptability, regardless of background
or where they are based. Companies looking to hire for
their offices or foreign subsidiaries are also able to find
great talent that will help them develop, change, and
grow as a company more broadly. Each new diverse
employee brings a wealth of new perspectives and
possibilities to a business.
A Diversified Workforce and Workplace Culture
- A diverse talent pool also leads to a diverse workforce.
The positive effects of globalization on workplace
culture can be tremendous. While some employers are
afraid of cultural differences affecting productivity and
internal communication and collaboration, a solid hiring
strategy and inclusive company culture can do the trick.
Look for suitable candidates by focusing on the
necessary skills and the right behaviours needed to
succeed in your business and industry. Then build an
open company culture, where different kinds of
communication and collaboration are championed, and
inclusive behaviours are rewarded.
LESSON 5 – DOWNSIDES OF GLOBALIZATION
What Are the Disadvantages of Globalization?
While it can benefit nations, there are also several
negative effects of globalization. Cons of
globalization include:
1. Unequal economic growth.
- While globalization tends to increase economic
growth for many countries, the growth isn’t
equal— richer countries often benefit more than
developing countries.
2. Lack of local businesses
- The policies permitting globalization tend to
advantage companies that have the resources and
infrastructure to operate their supply chains or
distribution in many different countries, which can
hedge out small local businesses.
3. Increases potential global recessions
- When many nations’ economic become
interdependent, the likelihood of a global recession
increases dramatically- because if one country’s
economy starts to struggle, this can set off a chain
reaction that can affect many other countries
simultaneously, causing a worldwide financial
crisis.
4. Exploits cheaper labor markets
- Globalization allows businesses to increase jobs
and economic opportunities in developing
countries, where the cost of labor is often cheaper.
However, overall economic growth in these
countries may be slow or stagnant.
5. Increasing the Unemployment Rate
- Globalization demands for higher-skilled work
with cheaper price. But countries where
institutions are relatively weak are not capable of
producing highly skilled workers. As a result, the
unemployment rate is increasing in those
countries.
7. Trade imbalance.
- The balance of trade refers to the balance of
values between a country’s export and import’s
goods and services. As the result ofglobalization,
any country can trade to any part of the globe.
8. Environmental Loots.
- The pace of industrialization is increasing as the
result of globalization. Industrialization boosts the
economic growth but it harms environment as
well. Globalization loots from the nature and it
harm us very badly.
Environmental Challenges
- Deforestation and loss of biodiversity
- Greenhouse gas emissions and other forms
of pollution
The introduction of potentially invasive species into
new environments.
✓More trade means more transport which uses
fuels and causes pollution
✓ Climate change is a serious threath to our future
9. Increased Competition.
When viewed as a whole, global free trade is
beneficial to the entire system. Individual
companies, organizations, and workers can be
disadvantaged, however, by global competition.
This is similar to how these parties might be
disadvantaged by domestic competition: The pool
has simply widened.
10. Disproportionate Growth.
- Globalization can introduce disproportionate
growth both between and within nations. These
effects must be carefully managed economically
and morally.
- Within countries, globalization often has the effect
of increasing immigration. Macroeconomically,
immigration increase gross domestic product
(GDP), which can ban economic boon to the
recipient nation. Immigration may, however,
reduce GDP per capita in the short run if
immigrants’ income is lower than the average
income of those already living in the country.
11. Health Issues.
- Globalization has given rise to more health risks
and present new threats and challenges for
epidemics.
12. Globalization Can Contribute to Cultural
Homogeneity.
- Globalization might lead to more cultural
homogeneity as people’s preferences converge and
products cannot compete with cheaper
multinational ones.
LESSON 6 – EFFECTS OF GLOBALIZATION IN THE
WORKPLACE
WHAT IS GLOBALIZATION?
- It is the development of an integrated global
economy including greater free trade, free
international capital flows, and availability of
inexpensive labor market in less developed areas.
WHAT IS GLOBALIZATION IN A WORKPLACE?
- The workplace is evolving, largely because of
globalization. Its a process where organizations take
their businesses to an international stage. In today's
world, companies are more interested to operate on
a global scale as they find that, there is demand for
their products.
HOW DOES GLOBALIZATION AFFECTS THE
WORKPLACE
WORKPLACE CULTURAL DIVERSITY
- Globalization leads to greater levels of workplace
diversity, and gives workplaces access to more
resources, which in turn increases their potential for
driving change.
- Although an increase in cultural diversity in the
workplace may create issues, it also provides
opportunities that may benefit companies. While
organizations find it necessary to adopt new
communication processes and policies with an
increasingly diversified workforce, they also gain
insight into different cultures that may then be
targeted from a sales and marketing perspective.
People from different cultures also bring different
viewpoints and ideas to the table, boosting creativity
and potential for company growth.
EMPLOYEE DIVERSITY TRAINING
- Cultural, religious and ethnic diversity in the
workplace presents a need for more employee
training. In order to protect their companies and their
new employees from discrimination, managers have
had to implement policies an offer training to existing
employees to make sure everyone can accept one
another. This has led to a greater appreciation of
other cultures an viewpoints in some companies,
while irritating some employees who prefer a less
culturally diverse work environment.
JOB DISLOCATIONS
- It is important to keep in mind that globalization
creates job dislocations, not job losses. In fact, almost
all economists agree that globalization and the wealth
of new markets and consumers has led to the creation
of many millions of new jobs worldwide. However,
globalization does mean many jobs are outsourced
from one country to another because of lower labor
costs; which means a lot of people who used to work
in those jobs are out of work and must find new jobs.
Technically speaking, however, the jobs still exist,
they are simply located in a country with lower labor
costs.
EARNINGS CHANGES FOR WORKERS
- As more companies have access to overseas
companies that offer outsourcing, wages have
changed for many workers. With lower standards of
living, third world companies can offer their services
at a rate greatly reduced from those in countries with
higher standards of living. This has affected many
workers in the United States as well as other large
countries as more companies embrace the
outsourcing trend. While it means a greater profit
margin for the companies, it can also lead to reduced
earning potential for employees.
INCREASED WORKPLACE STANDARDS
- Companies in foreign countries, particularly in the
third world, have had to adopt a more Western
standard in terms of providing better workplace
safety and increasing workplace condition standards.
This directly benefits the employees who may have
been previously working in unsafe or unsanitary
conditions. While conditions still remain poor in some
areas, an increase in concern over worker safety is
apparent, particularly in larger companies.
Additionally, concerns over child labor has improved
the conditions for young workers in these poorer
countries.
4 WAYS GLOBALIZATION IS AFFECTING YOUR TEAMS
IN A WORKPLACE
 DISADVANTAGES OF GLOBALIZATION IN THE
WORKPLACE

1. Potential for IP theft

- When products are built overseas in factories on
behalf of a company based in another country, there
is potential that intellectual property and designs
could be copied and stolen and replicated and sold for
cheaper elsewhere.

2. Issues with supply chain

ADVANTAGES OF GLOBALIZATION IN THE - Businesses committed to ethical work practices may
WORKPLACE find that they cannot always account for these
standards being met at every point in their supply
chain and operations. For example there may be
suppliers, farmers, factory workers, logistics
operators who are exploited or work in unsafe
conditions.

3. Corruption

- Different standards apply in different countries, and

3. LARGER MARKETS
- Globalization opens up new opportunities for
businesses to sell their goods and services to a much
larger markets, which means more potential sales and
greater profits. Depending on the organization it can
open up other opportunities in terms of distribution,
logistics, marketing and management of these goods
and services.
many nations in the developing world are rife with
corruption.
Researchers at the Henley Business School
found 85% of managers surveyed
admitted they had to resort to bribery
when trading with developing countries
where it is considered a usual cost of
doing business.

4. EARNING CHANGES
- With more and more companies accessing overseas
outsourcing opportunities, wages have decreased for
many workers in the original countries. Companies in
developing countries are able to offer their services at
a much reduced rate from those who live in countries
with greater living standards. This means that workers
in larger countries are affected.

- For businesses looking to take advantage of the

opportunities offered by globalization, this can
include paying lower salaries and having lower
overheads when they operate in less developed
nations. Other savings can be made in countries that
have more favorable taxation and reduced red tape
and business costs.
LESSON 7 - Factors Affecting HRM in Global Market
What is Human Resource Management?
- It is the practice of recruiting, hiring, deploying and
managing an organization's employees.
- It is the organizational function that manages all of
the issues related to the people in an organization.
What is Global Market?
- Refers to the process and activity of purchasing or
selling products and services across all nations in the
world. The activity can also be conducted through the
network and digital means reaching target markets.
Factors affecting HRM in Global Market:
Cultural Factor
- Culture is composed of the societal forces affecting
the values, beliefs, and actions of a distinct group of
people. Cultural differences certainly exist between
nations, but significant cultural differences exist
within countries also. One only has to look at the
conflicts caused by religion or ethnicity in Central
Europe and other parts of the world to see the
importance of culture on international organizations.
Power Distance
- The dimension of power distance refers to the
inequality among the people of a nation. As power
distance increases, there are greater status and
authority differences between superiors and
subordinates. One way in which differences on this
dimension affect HR activities is that the reactions to
management authority differ among cultures.
Individualism
- On this dimension, people in Asian countries tend to
be less individualistic and more group-oriented,
whereas those in the United States score the highest
in individualism. An implication of these differences is
that more collective action and less individual
competition is likely in those countries that
deemphasize individualism
Masculinity / Femininity
- The cultural dimension masculinity/femininity refers
to the degree to which “masculine” values prevail
over “feminine” values. Masculine values identified
by Hofstede were assertiveness, performance
orientation, success, and competitiveness, whereas
feminine values included quality of life, close
personal relationships, and caring.
Uncertainty Avoidance
- The dimension of uncertainty avoidance refers to
the preference of people in a country for structured
rather than unstructured situations. A structured
situation is one in which rules can be established and
there are clear guides on how people are expected to
act.
Long-term Orientation
The dimension of long-term orientation refers to
values people hold that emphasize the future, as
opposed to short-term values, which focus on the
present and the past. Long-term values include thrift
and persistence, while short-term values include
respecting tradition and fulfilling social obligations.
Political and Legal Factor
- The nature and stability of political systems vary
from country to country. Some governments regularly
are overthrown by military coups. Others are ruled by
dictators and despots who use their power to require
international firms to buy goods and services from
host-country firms owned or controlled by the rulers
or the rulers’ families.
- Legal systems vary in character and stability, with
business contracts sometimes becoming
unenforceable because of internal political factors.
International firms may have to decide strategically
when to comply with certain laws and regulations and
when to ignore them because of operational or
political reasons. Another issue involves ethics.
Economic Factor
- Different countries have different economic
systems. Some even still operate with a modified
version of communism, which has essentially failed.
Many lesser-developed nations are receptive to
foreign investment in order to create jobs for their
growing populations. nations with weak economies
may not be able to invest in maintaining and
upgrading the necessary elements of their
infrastructures, such as roads, electric power, schools,
and telecommunications.
Most Common obstacles to effective HR
Management:
 Cross-cultural Adaptation
 Different Organizational/Workforce Values
 Differences In Management Style
 Management Turnover.