INTERNATIONAL

BUSINESS
GLOBALIZATION
Presented by Group 5:
Nasr Osman
Ali Adel Presented to:
Mohamed Moustafa
Mohamed Hamam Dr. Ghada M. Abd Al Fatah
Osama Fahmy
Group 5

Ali Adel Nasr Osman Mohamed Moustafa Osama Fahmy Mohamed Hamam
Transformational Global: Events, Trends & Innovations
What Is Globalization?
Globalization is the word used to describe the growing interdependence of the world’s economies, cultures, and
populations, brought about by cross-border trade in goods and services, technology, and flows of investment,
people, and information.

The Events, Trends & Innovations Significantly affecting the Globalization

From the above Globalization definition, we will list the events, trends or Innovations will affect the following main
factors:-
1. The world’s Economies Growth
2. The growing interdependence Cultures
3. People transfer a cross countries boundaries
4. The Trade in goods and services exchanges between countries
5. The Technology transfer a cross countries boundaries
 Russia’s invasion of Ukraine

Richard Nixon visit to China in 1972

The global pandemic created by COVID-

EVENTS 19 has affected the world economy

Digging the Suez Canal, Digging the

Panama Canal

The Coal & Petroleum Exploration

Events
1. Russia's invasion of Ukraine
Russia’s invasion of Ukraine has led to new round of predications that the end of globalization is night, much like we saw at the beginning of the Covid-19 pandemic.

Trade Flows

Capital Flow

Information Flow

People Flow

International Flow
Events
1. Russia's invasion of Ukraine
Russia’s invasion of Ukraine has led to new round of predications that the end of globalization is night, much like we saw at the be ginning of the Covid-19 pandemic.

Trade Flows
- World trade in goods bounced back to above pre-pandemic levels before the end of 2020.
- The consequences are especially severe for food and fuels, key exports from Russia and Ukraine.
- Wider retreat from international trade which would further increase inflation

Capital Flow

Information Flow

People Flow

International Flow
Events
1. Russia's invasion of Ukraine
Russia’s invasion of Ukraine has led to new round of predications that the end of globalization is night, much like we saw at the be ginning of the Covid-19 pandemic.

Trade Flows

Capital Flow
- Much like trade, international capital flows also plummeted at the beginning of the pandemic.
- FDI surged back to above its pre-pandemic level in 2021, and the UN Conference on Trade and
Development reported a positive outlook for FDI growth as of January 2022

Information Flow

People Flow

International Flow
Events
1. Russia's invasion of Ukraine
Russia’s invasion of Ukraine has led to new round of predications that the end of globalization is night, much like we saw at the be ginning of the Covid-19 pandemic.

Trade Flows

Capital Flow

Information Flow
- International data flows surged as the pandemic sent in-person interactions online.
- The annual growth rate of international internet traffic roughly doubled in 2020.

People Flow

International Flow
Events
1. Russia's invasion of Ukraine
Russia’s invasion of Ukraine has led to new round of predications that the end of globalization is night, much like we saw at the be ginning of the Covid-19 pandemic.

Trade Flows

Capital Flow

Information Flow

People Flow
- International flows of people have been restricted severely during the Covid-19 pandemic.
- The number of people traveling to foreign countries fell 73% in 2020 and was still down 71% versus pre-
pandemic levels in 2021.

International Flow
Events
1. Russia's invasion of Ukraine
Russia’s invasion of Ukraine has led to new round of predications that the end of globalization is night, much like we saw at the be ginning of the Covid-19 pandemic.

Trade Flows

Capital Flow

Information Flow

People Flow

International Flow
- The war, nonetheless, have a large effect on the geography of international flows.
Events

2. Richard Nixon visit to China in 1972

The visit was the culmination of the resumption of

harmonious relations between the US and China after
25 years of diplomatic isolation.

Nixon's visit to Beijing was targeting repairing more

than two decades of frozen relations after Nixon
realized the great potential of China, also gain more
influence on relations with the Soviet Union and at the
same time release the tension between them.
Today the US China relationship is one of the most
important in the world, in 2014 US countries exchange Nixon called his visit
more than $520 billion in trade and there’s a flight
every 17 min.
"the week that changed the world"
“Commercial opportunities have exploded”
 China is “The World’s Factory”

The Electronic Commerce

TRENDS
Green Production
Trends

2. China is “The World’s Factory”

Some may think the ubiquity of Chinese products is due to the plenty of cheap Chinese labor that brings down the production c osts, but there is much more to it
than that, these key factors are:

Low Labor Costs

Rural-urban internal migration to industrial cities, Workers supply > demand,
this helps to produce in bulk, accommodate any seasonal or sudden rises in demand.

Strong business ecosystem

Incl. component manufacturers, assembly suppliers, low-cost workers, technical
workforce, and customers. All producing through competition & cooperation.

Lack of regulatory compliance

Long shift hours, no compensation insurance, some workers are paid once a year, tolerate
with child labor, involuntary labor, health & safety, wage laws, and ignore environmental
protection laws routinely to cut down on waste management costs.

Low taxes and duties

Zero or rebated VAT for exported goods, the most favored country treatment by USA.
Low tax rates → lower production cost → attract more investors and companies

Competitive currency practices

China buys USD and sells Yuan to depress its value vs USD (e.g. 30% less in 2015), to
provide an edge for its exports against similar goods by foreign competitors.
 The Internet and E-mails.

Communication Tools
The Cell phones

Communication Software’s: MS teams

INNOVATIONS
Digital Transformational and
Innovations in tourisms events
Transportations Innovation:
Car, Ship, Train, and Plane
Innovations

1. Transportation

Transportation is the industry that connects other industries ... it is the key to globalization

Without reliable transportation across the geographic divides, globalization would not exist. Moving
people and goods is of high economic importance, as it improves the economic welfare of a society.

Developments such as containerization for ocean shipping allows companies to ship large products
more efficiently, thereby decreasing cargo costs. Advancements in transportation that have enabled the
world to trade as though it were one community are commercial jets.
The pace of globalization over the last sixty years has accelerated due to containers

Standardized shipping container has the advantage of being used by several transport modes.
Maritime, railway and road modes are all able to handle containers, increasing the flexibility of freight
transport, mainly by reducing transshipment costs and delays.
Innovations

1. Transportation:

“It doesn’t matter anymore where you produce something now, because transport costs aren’t
important”

Recent efforts in international transportation have been made to integrate separate transport systems
through the use of at least two different modes. This came to be known as intermodal transportation

International seaborne trade carried by

container ships from 1980 to 2020
References

Globalization definition:
https://www.piie.com/microsites/globalization/what-is-globalization

Russia’s invasion of Ukraine:

https://hbr.org/2022/04/the-state-of-globalization-in-2022
Book ,(The State of Globalization in 2022) by Steven A.Altman and Caroline R.Bastian

Digital Transformational and Innovations in tourisms events:

Book (Digital Transformational and Innovations in tourisms events ) by author Azizul Hassan

Richard Nixon visit to China in 1972:

https://en.wikipedia.org/wiki/1972_visit_by_Richard_Nixon_to_China

China is "The World's Factory:

https://www.investopedia.com/articles/investing/102214/why-china-worlds-factory.asp