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Lecture Global business today (8/e): Chapter 1 - Charles W.L. Hill
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Lecture Global business today (8/e): Chapter 1 - Charles W.L. Hill
Duy Thanh
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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. | Global Business Today 8e by Charles W.L. Hill Chapter 1 Globalization What Is Globalization? Question: What is globalization? Globalization - the trend towards a more integrated global economic system Globalization of markets - the merging of historically distinct and separate national markets into one huge global marketplace Globalization of production - the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production (labor energy, land, and capital) The Emergence of Global Institutions Global institutions: Manage, regulate, and police the global market place Promote the establishment of multinational treaties to govern the global business system Notable global institutions include the: World Trade Organization (WTO) International Monetary Fund (IMF) World Bank United Nations (UN) Drivers of Globalization Question: What is driving the move toward greater globalization? Two macro factors: Declining trade and investment barriers Technological change International trade occurs when a firm exports goods or services to consumers in another country Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country Drivers of Globalization Average Annual Percentage Growth in Volume of Exports and World GDP, 1950-2010 Changing World Output and World Trade Question: How has world output and world trade changed over the last 50 years? In the 1960s: The U.S. dominated the world economy and the world trade picture The U.S. dominated world FDI U.S. multinationals dominated the international business scene About half the world-- the centrally planned economies of the communist world-- was off limits to Western international business Today, much of this has changed Changing World Output and World Trade Picture The Changing Demographics of World GDP and Trade Multimedia Lecture Support Package to Accompany Basic Marketing Lecture | Global Business Today 8e by Charles W.L. Hill Chapter 1 Globalization What Is Globalization? Question: What is globalization? Globalization - the trend towards a more integrated global economic system Globalization of markets - the merging of historically distinct and separate national markets into one huge global marketplace Globalization of production - the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production (labor energy, land, and capital) The Emergence of Global Institutions Global institutions: Manage, regulate, and police the global market place Promote the establishment of multinational treaties to govern the global business system Notable global institutions include the: World Trade Organization (WTO) International Monetary Fund (IMF) World Bank United Nations (UN) Drivers of Globalization Question: What is driving the move toward greater globalization? Two macro factors: .
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