Globalization 1 Copyright © 2014 Pearson Education, Inc

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<ul><li> Slide 1 </li> <li> Globalization 1 Copyright 2014 Pearson Education, Inc. </li> <li> Slide 2 </li> <li> Identify the types of companies that participate in international business Describe the process of globalization and how it affects markets and production Describe the two forces causing globalization to increase Summarize the evidence for each main argument in the globalization debate Describe the global business environment and identify its four main elements Chapter Objectives 1 - 2 </li> <li> Slide 3 </li> <li> Copyright 2014 Pearson Education, Inc. Apple 1 - 3 User-Centered Design Outsource Production Markets Globally Global Brand Strategy </li> <li> Slide 4 </li> <li> Copyright 2014 Pearson Education, Inc. International Business We experience international transactions daily Imports/exports reach us even in remote areas Technology and e-business promote trade Global talent contributes to efficiency/competitiveness 1 - 4 </li> <li> Slide 5 </li> <li> Copyright 2014 Pearson Education, Inc. Key Players Business that has direct investments abroad in multiple countries Small companies and individuals becoming increasingly active in international trade and investment Adopts a global perspective and engages in international business from or near its inception Multinational Corporation Small Businesses and Entrepreneurs Born Global Firm 1 - 5 </li> <li> Slide 6 </li> <li> Copyright 2014 Pearson Education, Inc. Global Firms vs. Nations Comparing revenue of the world's 10 most global firms to the gross domestic product of nations Source: Based on data obtained from Fortune Global 500: The Worlds Largest Corporations, Fortune, July 23, 2012, pp. F1F7; World Bank data set available at data.worldbank.org. 1 - 6 </li> <li> Slide 7 </li> <li> Copyright 2014 Pearson Education, Inc. Globalization Trend toward greater economic, cultural, political and technological interdependence among national institutions and economies Globalization of markets Convergence in buyer preferences in markets around the world Globalization of production Dispersal of production activities worldwide to minimize costs or maximize quality 1 - 7 </li> <li> Slide 8 </li> <li> Copyright 2014 Pearson Education, Inc. Benefits of Global Markets Levels income stream Reduces marketing costs Creates new market opportunities 1 - 8 </li> <li> Slide 9 </li> <li> Copyright 2014 Pearson Education, Inc. Developed markets 1 billion people Emerging markets 2 billion people Traditional markets 4 billion people Global Sustainability: Three Markets, Three Strategies 1 - 9 </li> <li> Slide 10 </li> <li> Copyright 2014 Pearson Education, Inc. Benefits of Global Production Production inputs Lower-cost labor Technical expertise 1 - 10 </li> <li> Slide 11 </li> <li> Copyright 2014 Pearson Education, Inc. Labor and Resources 1 - 11 Companies can access workers and resources in favorable business climates almost anywhere in the world </li> <li> Slide 12 </li> <li> Copyright 2014 Pearson Education, Inc. Discussion Question What benefits might companies obtain from the globalization of markets and the globalization of production? 1 - 12 </li> <li> Slide 13 </li> <li> Copyright 2014 Pearson Education, Inc. Answer to Discussion Question Global markets can reduce marketing costs, create new market opportunities abroad, and level income streams. Global production can allow access to lower-cost workers, technical expertise, and production inputs. 1 - 13 </li> <li> Slide 14 </li> <li> Copyright 2014 Pearson Education, Inc. Globalization Drivers (1) Falling Barriers Regional trade agreements GATT WTO Remove barriers to trade and investment 1 - 14 </li> <li> Slide 15 </li> <li> Copyright 2014 Pearson Education, Inc. Trade Exceeds Output 1 - 15 </li> <li> Slide 16 </li> <li> Copyright 2014 Pearson Education, Inc. Globalization Drivers (2) Technological Innovation Email and videoconferencing Internet, intranets, and extranets Transportation advancements Better coordination and control Improved communications and management More efficient, dependable shipping 1 - 16 </li> <li> Slide 17 </li> <li> Copyright 2014 Pearson Education, Inc. Measuring Globalization 1 - 17 </li> <li> Slide 18 </li> <li> Copyright 2014 Pearson Education, Inc. Globalization Then and Now Highly mobile labor market Fear of jobs moving abroad Backlash among the disaffected Free-flowing capital and trade 1 - 18 </li> <li> Slide 19 </li> <li> Copyright 2014 Pearson Education, Inc. From Anarchy to Debate Violence Rage Carnage Exclusion Legitimacy Reason Civility Debate 1 - 19 </li> <li> Slide 20 </li> <li> Copyright 2014 Pearson Education, Inc. Discussion Question __________ is the value of all goods and services produced by a countrys domestic and international activities over a one-year period. a. Gross Domestic Product b. Gross National Product c. GNP Per Capita 1 - 20 </li> <li> Slide 21 </li> <li> Copyright 2014 Pearson Education, Inc. Answer to Discussion Question __________ is the value of all goods and services produced by a countrys domestic and international activities over a one-year period. a. Gross Domestic Product b. Gross National Product c. GNP Per Capita 1 - 21 </li> <li> Slide 22 </li> <li> Copyright 2014 Pearson Education, Inc. Jobs and Wages Eliminates jobs in developed nations Lowers wages in developed nations Exploits workers in developing nations Increases wealth and efficiency everywhere Generates labor market flexibility in developed countries Advances economies of developing nations Supporters Opponents 1 - 22 </li> <li> Slide 23 </li> <li> Copyright 2014 Pearson Education, Inc. Salaries of IT Workers 1 - 23 Source: Based on data obtained from the International Average Salary Income Database (www.worldsalaries.org). </li> <li> Slide 24 </li> <li> Copyright 2014 Pearson Education, Inc. Labor, Environment, &amp; Markets Globalization lowers labor standards Weakens protection of the environment Exploits workers in poor nations + Investment raises labor standards + Open economies most environment friendly + Companies concerned for future markets OpponentsSupporters 1 - 24 </li> <li> Slide 25 </li> <li> Copyright 2014 Pearson Education, Inc. Managers Briefcase: The Keys to Global Success Communicate effectively Know the customer Emphasize global awareness Market effectively Monitor global markets 1 - 25 </li> <li> Slide 26 </li> <li> Copyright 2014 Pearson Education, Inc. Income Inequality debate Rich get richer in wealthy nations? or Poor get richer in developing nations? Inequality within Nations 1 - 26 </li> <li> Slide 27 </li> <li> Copyright 2014 Pearson Education, Inc. Gap widens between rich and poor nations? or Poor trading nations grow faster than rich ones? Inequality between Nations 1 - 27 </li> <li> Slide 28 </li> <li> Copyright 2014 Pearson Education, Inc. Income Inequality debate Gap between rich and poor greater everywhere? or Inequality has fallen but extent unknown? Global Inequality 1 - 28 </li> <li> Slide 29 </li> <li> Copyright 2014 Pearson Education, Inc. Discussion Question What does the evidence suggest for each branch of the debate on globalization and income inequality? 1 - 29 </li> <li> Slide 30 </li> <li> Copyright 2014 Pearson Education, Inc. Answer to Discussion Question Inequality within nations: Studies suggest that developing nations boost incomes of their poor by integrating them into the global economy. Inequality between nations: Nations open to trade and investment seem to grow faster than wealthy nations, while sheltered economies grow worse off. Global inequality: Global poverty has fallen in recent decades but experts disagree on the extent of the drop. 1 - 30 </li> <li> Slide 31 </li> <li> Copyright 2014 Pearson Education, Inc. Impact on Culture Opponents Destroys cultural diversity Homogenizes our world Bankrupts local small businesses Supporters Specialize and trade to obtain other goods Import cultural goods from other nations Protect deeper moral and cultural norms 1 - 31 </li> <li> Slide 32 </li> <li> Copyright 2014 Pearson Education, Inc. Culture Matters: The Culture Debate Material Desire A Force for Good Artistic Influence Deeper Values Western Values 1 - 32 </li> <li> Slide 33 </li> <li> Copyright 2014 Pearson Education, Inc. National Sovereignty Supporters Globalization has benefited societies by helping to spread democracy worldwide Opponents Supranational institutions reduce autonomy of national, regional, and local governments 1 - 33 </li> <li> Slide 34 </li> <li> Copyright 2014 Pearson Education, Inc. Global Business Environment 1 - 34 </li> <li> Slide 35 </li> <li> Copyright 2014 Pearson Education, Inc. Discussion Question The textbook you are using in this course describes a model of international business as occurring within a dynamic and integrated system called the __________. a. Cultural Business Model b. Globalization Environment c. Global Business Environment 1 - 35 </li> <li> Slide 36 </li> <li> Copyright 2014 Pearson Education, Inc. Answer to Discussion Question The textbook you are using in this course describes a model of international business as occurring within a dynamic and integrated system called the __________. a. Cultural Business Model b. Globalization Environment c. Global Business Environment 1 - 36 </li> <li> Slide 37 </li> <li> Copyright 2014 Pearson Education, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright 2014 Pearson Education, Inc. 1 - 37 </li> </ul>