体验商务英语3 unit1Globalization

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1、GLOBALIZATIONChapter 1 1-2Chapter Objectives1.Understand the term of globalization2.Understand the main drivers of globalization3.Understand the changing nature of the global economy4.Understand the main arguments in the debate over the impact of globalization5.Understand the opportunities and chall

2、enges for business managers created by globalization1-3Course Objectives1) have a basic knowledge of fundamental issues (e.g, those listed in the Course Description) in international business, 2) understand the purpose, practice, significance, and current state of international business,3) understan

3、d the factors that a firm needs to consider when investing in foreign countries,4) achieve a rounded understanding of what it would be like to do business in another country, and 5) improve teamwork, presentation, problem-solving, and critical thinking skills.1-4IntroductionIn the world economy toda

4、y, we seea shift away from self-contained national economies with high barriers to cross-border trade and investmenta move toward a more integrated global economic system with lower barriers to trade and investmentabout $3 trillion in foreign exchange transactions taking place everydaythe establishm

5、ent of international institutions1-5IntroductionThe effects of this trend can be seen in the following Examples in our daily life:in the cars people drivein the food people eatin the jobs where people work in the clothes people wearin many other ways1-6What Is Globalization?Question: What is globali

6、zation? Globalization refers to the trend towards a more integrated and interdependent world economy.Two key facets of globalization are:the globalization of _the globalization of _ 1-7The Globalization of MarketsThe globalization of markets refers to the merging of historically distinct and separat

7、e national markets into one huge global marketplace. 1. Converging tastes and preferences of consumers in different nations Q: Impacts on American businesses?2. Examples of global brands: Coca Cola, Starbucks, Sony, and McDonalds1-8The Globalization of ProductionThe globalization of production refer

8、s to 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 goal for companies is to lower their overall cost structure or improve the quality or functionality

9、 of their product and gain competitive advantageExamples: GE, Boeing, Dell1-9The Emergence of Global InstitutionsSeveral global institutions have emerged tohelp manage, regulate, and police the global market placepromote the establishment of multinational treaties to govern the global business syste

10、m Examples: World Trade Organization (WTO) World Bank, International Monetary Fund (IMF), United Nations (UN)1-10Drivers of Globalization Question: What factors drive the move toward greater globalization? Two macro factors underlying the trend toward greater globalization1.declining trade and inves

11、tment barriers2.technological change 1-11Declining Trade and Investment BarriersInternational trade occurs when a firm exports goods or services to consumers in another countryForeign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country During

12、the 1920s and 1930s, many nations erected barriers to international trade and FDI to protect domestic industries from foreign competition. Examples: USA, Britain1-12Declining Trade and Investment BarriersAfter WWII, advanced Western countries began removing trade and investment barriers Under GATT (

13、the forerunner of the WTO), over 100 nations negotiated further decreases in tariffs and made significant progress on a number of non-tariff issues Under the WTO, a mechanism now exists for dispute resolution and the enforcement of trade laws, and there is a push to cut tariffs on industrial goods,

14、services, and agricultural products1-13Declining Trade and Investment BarriersLower trade barriers enable companies to view the world as a single market and establish production activities in optimal locations around the globeThis has led to an acceleration in the volume of world trade and investmen

15、t since the early 1980s1-14The Role of Technological ChangeThe lowering of trade barriers made globalization of markets and production a theoretical possibility, technological change made it a tangible realitySince World War II, there have been major advances in communication, information processing

16、, and transportation1-15The Role of Technological ChangeThe development of the microprocessor has lowered the cost of global communication and therefore the cost of coordinating and controlling a global organizationWeb-based transactions have grown from virtually zero in 1994 to $250 billion in 2007

17、 in the U.S. alone, and Internet usage is up from fewer than 1 million users in 1990 to 1.3 billion users in 2007 Development of commercial jet aircraft and super freighters and the introduction of containerization have greatly simplified transshipment from one mode of transport to another1-16The Ro

18、le of Technological Change Question: What are the implications of technological change for the globalization of production?Lower transportation costs make a geographically dispersed production system more economical and allow firms to better respond to international customer demands1-17The Role of T

19、echnological Change Low cost communications networks have helped create electronic global marketplacesLow cost transportation have enabled firms to create global markets, and have facilitated the movement of people from country to country promoting a convergence of consumer tastes and preferences1-1

20、8The Changing Demographics of the Global EconomyIn the 1960s: the U.S. dominated the world economy and the world trade picturethe 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

21、off limits to Western international businessToday, much of this has changed.1-19The Changing World Output and World Trade PictureIn the early 1960s, the U.S. was the worlds dominant industrial power accounting for about 40.3% of world manufacturing output By 2007, the U.S. accounted for only 20.7%Ot

22、her developed nations experienced a similar decline1-20The Changing World Output and World Trade PictureRapid economic growth is now being experienced by countries such as China, Thailand, and MalaysiaFurther relative decline in the U.S. share of world output and world exports seems likelyForecasts

23、predict a rapid rise in the share of world output accounted for by developing nations such as China, India, Indonesia, Thailand, and South Korea, and a decline in the share by industrialized countries such as Britain, Japan, and the United StatesSo companies may find both new markets and new competi

24、tors in the developing regions of the world 1-21The Changing Foreign Direct Investment PictureThe share of world output generated by developing countries has been increasing since the 1960sThe stock of foreign direct investment (total cumulative value of foreign investments) generated by rich indust

25、rial countries has been on a steady declineThere has been a sustained growth in cross-border flows of FDIThe largest recipient of FDI has been China 1-22The Changing Nature of the Multinational EnterpriseA multinational enterprise is any business that has productive activities in two or more countri

26、esSince the 1960s, there has been a rise in non-U.S. multinationalsthere has been a rise in mini-multinationals1-23The Changing Nature of the Multinational EnterpriseThe globalization of the world economy has resulted in a decline in the dominance of U.S. firms in the global marketplaceIn 1973, 48.5

27、 % of the worlds 260 largest MNEs were U.S. firms By 2006, just 24 of the worlds 100 largest non-financial MNEs were from the U.S., 13 were from France, 12 from Germany, 12 were from Britain, and 9 were from Japan, and 7 of the worlds largest 100 MNEs were from developing economies1-24The Changing N

28、ature of the Multinational EnterpriseWhile most international trade and investment is conducted by large MNEs, many small and medium-size firms are expanding internationallyThe Internet has made it easier for many smaller companies to build international sales 1-25The Changing World OrderToday, many

29、 markets that had been closed to Western firms are openThe collapse of communism in Eastern Europe has created a host of export and investment opportunities Economic development in China has created huge opportunities despite continued Communist controlFree market reforms and democracy in Latin Amer

30、ica have created opportunities for new markets and new sources of materials and production1-26The Global Economy of the Twenty-First CenturyA more integrated global economy presents new opportunities for firms, but it can also result in political and economic disruptions that may throw plans into di

31、sarray1-27Antiglobalization Protests Question: What are the concerns of critics of globalization? -Jobs-Labor policy-Environment Issues-National sovereignty -Gap between the rich and the poor1-28Managing in the Global Marketplace Question: What does the shift toward a global economy mean for manager

32、s within an international business?1-29Managing in the Global Marketplace1.Countries differences require companies to vary their practices country by country2.Managers face a greater and more complex range of problems3.International companies must work within the limits imposed by governmental intervention and the global trading system4.International transactions require converting funds and being susceptible to exchange rate changes