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Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI

46, 2nd Floor, Jakarta

Week 3 What is globalization ?

Content : Intro …
Competing
The rise of
international business
in A Global Market Process by which
the world economy is becoming
International
business management a single interdependent system
Barrier to (Griffin, 2004)
international trade

Jakarta, September 2007

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jakarta

Tempat mana yang lebih Anda pilih ? Mana yang lebih Anda kenal dan sering dikunjungi ?

Intro … Intro …

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jakarta

Inikah salah satu tempat favorit Anda ? What are exports and imports ?

Imports are products made or grown abroad but
Intro … Intro … sold domestically;

while exports are products made or grown domestically but
shipped and sold abroad

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

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Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jakarta

The Contemporary Global Economy Trade Agreements

☯ General Agreements on Tariffs and Trade (GATT)
Several forces have combined to spark & sustain
globalization: ☯ North American Free Trade Agreement (NAFTA)
Intro … Content : ☯ European Union (EU)
1. Government and businesses are aware of benefits of ☯ World Trade Organization (WTO)
globalization to businesses and shareholders.
The rise of
2. New technologies make international travel, international business
communication and commerce much faster and
cheaper.
3. Competitive pressure sometimes force a firm to expand
into foreign markets to keep up with competitors.

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jakarta

The North American Marketplace and The Nations of NAFTA The Major World Marketplace

Per capita income is the average income per person.
Content : Content : 1. High-income countries: those with per capita income
greater than $ 9,386.
The rise of The rise of
international business international business 2. Middle-income countries: those with per capita income
of less than $ 9,386 but more than $ 765.

3. Low-income countries (developing countries): those
with per capita income of less than $ 765.

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jakarta

The Major World Marketplace Europe and The Nations of the European Union

NORTH AMERICA
 World’s largest marketplace and most
stable economy.
Content :  U.S. dominates.
Content :

EUROPE
The rise of  Western Europe is a mature but The rise of
international business fragmented marketplace. international business
 Eastern Europe has gained
importance as a marketplace and a
producer.

PASIFIC ASIA
 Nations of the ASEAN are an
important force in the world economy
and a major source of competition for
north American firms.

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

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Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jakarta

The Nations of ASEAN Forms of Competitive Advantage

• Absolute advantage is the ability to
Content : Content : produce something more efficiently
than any other country can.
• Comparative advantage is the ability to
The rise of The rise of
international business international business produce some product more efficiently
or better than other products.
• National competitive advantage is an
international competitive advantage
stemming from a combination of factor
conditions; demand conditions; related
and supporting industries; and firm
strategies, structures and rivalries.

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jakarta

Absolute Advantage: Saudi Oil Absolute Advantage: Brazilian Coffee Beans

Content : Content :

The rise of The rise of
international business international business

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jakarta

Absolute Advantage: Canadian Timber Absolute Advantage: Mexico Tequila

Content : Content :

The rise of The rise of
international business international business

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

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Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jakarta

Comparative Advantage: United States Movies Bollywood… ???

Content : Content :

The rise of The rise of
international business international business

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jakarta Universitas Multimedia Nusantara (UMN) Wisma BNI 46, 2nd Floor, Jakarta

Comparative Advantage: United States Computer Comparative Advantage: United States Farming

Content : Content :

The rise of The rise of
international business international business

Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id Exclusively prepared & presented by: Anna Riana Putriya, SE, MSi e-mail: anna@unimedia.ac.id

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