MASTER OF INTERNATIONAL BUSINESS

BUSM4488 Management Across Culture

Topic 1: Globalisation

* 1
 Topic 1: Outline

• Define Globalisation
• Outline history of Globalisation
• Examine if Globalisation is new
• Advantages & Disadvantages of
Globalisation

2
 Globalisation: Definitions

• In your group, develop your

own one (1) sentence
definition of Globalisation
• (no notes, no internet –
YOUR definition)

3
Globalisation: Definitions

• Globalization
“is the closer integration of the
countries and peoples of the
world... brought about by the
enormous reduction of costs of
transportation and
communication, and the
breaking down of artificial
barriers to the flows of goods,
services, capital, knowledge,
and people across borders”.
(from Globalization and its Discontents by Joseph
Steiglitz, 2002)

4
Stages of Globalization

Source: Yaman, 2001

5
 Contemporary Globalisation 1

• Three Key Factors that Initiated Contemporary Globalisation

(1989-present)
Steger, M, 2013, Globalization: A very short introduction 3rd ed. Oxford: Oxford University Press.

6
Contemporary Globalisation 2

7
Contemporary Globalisation 3

8
 History of Globalisation 1

• Ancient empires e.g. Rome 27 • East – West trade along the Silk
BC-500AD Road from 200AD

• 1492 Columbus ‘discovers’ the • European Imperialism – countries

Americas internationalise

9
 History of Globalisation 2

• Movement of people
• Colonisation
• 1700s: 7.15 million slaves shipped to
the New World
• 1870-1914: 60 million Europeans
emigrate to the Americas
• Growth of trade between Old World
nations and New World colonies

10
 History of Globalisation 3

• Growth of Nation-State system from

1648
• Internationalisation from 1770s–1900s
• Relative free trade 1870-1914 (low or
no tariffs)
• Railways (1820)
• International Telegraph Union (1865)
• International exhibitions (1851)
• Suez Canal (1859)
• Universal Postal Union (1874)
• Olympics (1896)

11
 History of Globalisation 4

• The first ‘modern’ MNC: The British East India Company

(1600 AD) & The Dutch East India Company (1602 AD)
• Companies internationalise, e.g. P&G
• League of Nations founded in 1919
• Growth of protectionism
• Great Depression (from 1929)
• WWII (1939-44)
• IMF, GATT, World Bank, UN 1944/5

12
 History of Globalisation 5

Globalisation 20th Century

• 1989 End of Cold War
• 1990s Growth of internet and
satellite communications
• Cheap foreign travel

13
 Globalisation Today

• Two components:

–The Globalisation of
Markets
–The Globalisation of
Production
(Hill et al, 2008, p.9)

14
 The Globalisation of Markets 1

• Is the merging of separate national

markets into one huge global
marketplace
• Tastes and preferences of
consumers in different nations are
converging upon some global
norms:
–E.g. Coca Cola, McDonald’s,
Starbucks, iPhones & Levi’s
• But significant differences still exist
among ‘national’ markets, as
described by Glocalisation

15
 The Globalisation of Markets 2

• Glocalisation (globalisation &

localisation), tastes for products and
services are influenced by local
cultures and ways of doing things,
as well as global processes
(Roudometof, 2005)
• Result: hybrid cultures (the
combining of two things)

16
 The Globalisation Debate

• Advantages • Disadvantages
- Free Trade - Free Trade

- Movement of People - Movement of People

- Culture
- Culture

17
De-Globalisation (Crouch, 2018)

18
 References
Bauman, Z. (1998). Globalization: The human consequences. Cambridge:
Polity Press.
Crouch, C. (2018). The globalization backlash. Cambridge: Polity Press.
Giddens, A. (1999). Runaway world: How globalisation is reshaping our
lives. London: Profile Books.
Hill, C., Cronk, T. & Wickramasekara, R. (2017). Global business today (10th
ed.). Sydney, McGraw-Hill.
Held, D. & McGrew, A, (Eds.) (2003). The global transformations reader.
Cambridge: Polity Press.
Roudometof, V. (2005). Translationalism, cosmopolitanism, and
glocalization. Current Sociology, 53(1), 113-135.
Steers, R.M., Nardon, L. & Sanchez-Runde, C.J. (2016). Management
across cultures: Developing global competencies (3rd ed.). Cambridge, UK:
Cambridge University Press.

19