TAILIEUCHUNG - Lecture International business (9e): Chapter 1 - Charles W.L. Hill

Chapter 1: Globalization. The objectives of this chapter: Understand what is meant by the term globalization, recognize the main drivers of globalization. describe the changing nature of the global economy, explain the main arguments in the debate over the impact of globalization, understand how the process of globalization is creating opportunities and challenges for business managers. | International Business 9e By Charles . Hill McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 1 Globalization What Is Globalization? Globalization - the shift toward a more integrated and interdependent world economy The world is moving away from self-contained national economies toward an interdependent, integrated global economic system LO 1 Understand what is meant by the term globalization. What Is The Globalization of Markets? Historically distinct and separate national markets are merging and creating the “global market” falling trade barriers make it easier to sell globally consumers’ tastes and preferences are converging on some global norm firms promote the trend by offering the same basic products worldwide What Is The Globalization of Production? Firms source goods and services from locations around the globe to capitalize on national differences in the cost and quality of factors of production like land, labor, energy, and capital Companies can lower their overall cost structure improve the quality or functionality of their product offering Why Do We Need Global Institutions? Global institutions manage, regulate, and police the global marketplace promote the establishment of multinational treaties to govern the global business system General Agreement on Tariffs and Trade (GATT) World Trade Organization (WTO) International Monetary Fund (IMF) World Bank United Nations (UN) G20 What Is Driving Globalization? Declining barriers to the free flow of goods, services, and capital average tariffs are now at just 4% more favorable environment for FDI global stock of FDI was $ trillion in 2009 facilitates global production Technological change microprocessors and telecommunications the Internet and World Wide Web transportation technology LO 2: Recognize the main drivers of globalization. Declining Trade And Investment Barriers Average Tariff Rates on Manufactured Products as Percent of Value How Has .

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