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Chapter 6 - The challenges of globalization. In this chapter, you learned to: Defining globalization and classifying the major ways in which companies enter the global marketplace, recognizing the major drivers of the globalization process and the international financial and trade institutions that have shaped this process in recent decades, analyzing the benefits and costs of the globalization of business, | Chapter 6 The Challenges of Globalization Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Ch. 6 Key Learning Objectives Defining globalization and classifying the major ways in which companies enter the global marketplace Recognizing the major drivers of the globalization process and the international financial and trade institutions that have shaped this process in recent decades Analyzing the benefits and costs of the globalization of business Identifying the major types of political and economic systems in which companies operate across the world, and the special challenges posed by doing business in diverse settings Assessing how businesses can work collaboratively with governments and the civil sector to address global social issues 6- The Process of Globalization Refers to the increasing movement of goods, services, and capital across national borders Is considered a process – an ongoing series of interrelated events . | Chapter 6 The Challenges of Globalization Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Ch. 6 Key Learning Objectives Defining globalization and classifying the major ways in which companies enter the global marketplace Recognizing the major drivers of the globalization process and the international financial and trade institutions that have shaped this process in recent decades Analyzing the benefits and costs of the globalization of business Identifying the major types of political and economic systems in which companies operate across the world, and the special challenges posed by doing business in diverse settings Assessing how businesses can work collaboratively with governments and the civil sector to address global social issues 6- The Process of Globalization Refers to the increasing movement of goods, services, and capital across national borders Is considered a process – an ongoing series of interrelated events International trade and financial flows integrate the world economy, leading to the spread of technology, culture, and politics Globalization is not simply a trend or a fad but, rather, an international system 6- Entering and Competing in the Global Marketplace Develop global market channels First build a successful business in their home country, then export products or services to buyers in other countries Establish global operations Locate manufacturing plants or service operations in other countries as a way to cut costs Develop global supply chains Purchase raw materials, components, or other supplies from sellers in other countries; work may also be subcontracted 6- Major Transnational Corporations (TNCs) Defined by the United Nations as firms that control assets abroad 104,000 TNCs operate in the modern global economy They, in turn, have nine times that number of affiliates (suppliers, subcontractors, and other entities with which they have some business relationship) Most global
