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Ch01 Globalization
Ch01 Globalization
7e
McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 1
Globalization
1-2
Introduction
1-3
What Is Globalization?
Answer:
Globalization refers to the trend towards a more
integrated global economic system
Two key facets of globalization are:
the globalization of markets
the globalization of production
1-4
The Globalization of Markets
1-5
The Globalization of Production
1-6
The Emergence of Global Institutions
Global institutions
manage, regulate, and police the global market place
promote the establishment of multinational treaties to
govern the global business system
the World Trade Organization (WTO) - polices world
trading system and ensures nations adhere to the rules
established in WTO treaties
In 2010, its 154 members accounted for 97% of world
trade
the International Monetary Fund (IMF) - maintains order
in the international monetary system
1-7
The Emergence of Global Institutions
1-8
Drivers of Globalization
Answer:
1. declining trade and investment barriers
2. technological change
1-9
Declining Trade and Investment Barriers
1-10
Declining Trade and Investment Barriers
1-11
Declining Trade and Investment Barriers
1-12
Declining Trade and Investment Barriers
1-13
The Role of Technological Change
1-14
The Role of Technological Change
1-15
The Role of Technological Change
Answer:
Low cost communications networks help create
electronic global marketplaces
Low cost transportation enable firms to create global
markets, and facilitate the movement of people from
country to country promoting a convergence of consumer
tastes and preferences
1-16
Changing Demographics of the Global Economy
In the 1960s:
the U.S. dominated the world economy and world trade
and world FDI
U.S. multinationals dominated the international business
scene
about half the world-- the centrally planned economies of
the communist world-- was off limits to Western
international business
Today, much of this has changed.
1-17
Changing World Output and World Trade Picture
1-18
Changing World Output and World Trade Picture
1-19
Changing Foreign Direct Investment Picture
1-20
Changing Foreign Direct Investment Picture
1-21
Changing Foreign Direct Investment Picture
1-22
The Changing Multinational Enterprise
1-23
The Changing Multinational Enterprise
1-24
The Changing World Order
1-25
The Global Economy in the 21st Century
1-26
The Globalization Debate
Answer:
Many experts believe that globalization is promoting
greater prosperity in the global economy, more jobs, and
lower prices for goods and services
Others feel that globalization is not beneficial
1-27
Antiglobalization Protests
Answer:
Anti-globalization protesters now turn up at almost every
major meeting of a global institution
Protesters fear that globalization is forever changing the
world in a negative way
1-28
Globalization, Jobs, and Income
1-29
Globalization, Labor Policies, and the Environment
1-30
Globalization and National Sovereignty
1-31
Globalization and the World’s Poor
Critics argue the gap between rich and poor has gotten
wider and the benefits of globalization have not been
shared equally
Supporters suggest that the actions of governments
have made limited economic improvement in many
countries
many of the world’s poorest nations are under
totalitarian regimes, suffer from endemic corruption,
have few property rights, are involved in war, and are
burdened by high debt
1-32
Managing in the Global Marketplace
Answer:
Managing an international business (any firm that
engages in international trade or investment) differs from
managing a domestic business in four key ways
1-33
Managing in the Global Marketplace
1-34
Classroom Performance System
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Classroom Performance System
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Classroom Performance System
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Classroom Performance System
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Classroom Performance System
1-39