Emergence of the Globally Integrated Business World
Globalization
Learning objectives
• Understand what is meant by the term globalization.
• Be familiar with the main drivers of globalization.
• Appreciate the changing nature of the global economy.
• Understand the major arguments in the debate over the impact of globalization.
• Appreciate how the process of globalization is creating opportunities and challenges for business managers.
This chapter introduces the emergence of the globally integrated business world. Globalization has reduced the traditional barriers to cross-border trade and investment (distance, time zones, language, differences in government regulations, culture, business systems).
To begin the discussion of contemporary issues in international business, macro-economic and political changes in the last 30 years are reviewed.
Information technology and other technological innovations have put global markets within the reach of even small firms in remote locations. Yet, in spite of all its benefits, globalization has an underside. Critics point out its adverse effects, including those on developing nations.
The opening case explores the globalization of the flat panel television industry. The closing case illustrates how one company, IKEA, has benefited from the globalization of markets and the globalization of production.
OUTLINE OF CHAPTER 1: GLOBALIZATION
Opening Case: Flat Panel Televisions and the Global Economy
Introduction
What is Globalization? The Globalization of Markets The Globalization of Production
Country Focus: Outsourcing American Healthcare
The Emergence of Global Institutions
Drivers of Globalization Declining Trade and Investment Barriers The Role of Technological Change
The Changing Demographics of the Global Economy The Changing World Output and World Trade Picture The Changing Foreign Direct Investment Picture The
Learning objectives
• Understand what is meant by the term globalization.
• Be familiar with the main drivers of globalization.
• Appreciate the changing nature of the global economy.
• Understand the major arguments in the debate over the impact of globalization.
• Appreciate how the process of globalization is creating opportunities and challenges for business managers.
This chapter introduces the emergence of the globally integrated business world. Globalization has reduced the traditional barriers to cross-border trade and investment (distance, time zones, language, differences in government regulations, culture, business systems).
To begin the discussion of contemporary issues in international business, macro-economic and political changes in the last 30 years are reviewed.
Information technology and other technological innovations have put global markets within the reach of even small firms in remote locations. Yet, in spite of all its benefits, globalization has an underside. Critics point out its adverse effects, including those on developing nations.
The opening case explores the globalization of the flat panel television industry. The closing case illustrates how one company, IKEA, has benefited from the globalization of markets and the globalization of production.
OUTLINE OF CHAPTER 1: GLOBALIZATION
Opening Case: Flat Panel Televisions and the Global Economy
Introduction
What is Globalization? The Globalization of Markets The Globalization of Production
Country Focus: Outsourcing American Healthcare
The Emergence of Global Institutions
Drivers of Globalization Declining Trade and Investment Barriers The Role of Technological Change
The Changing Demographics of the Global Economy The Changing World Output and World Trade Picture The Changing Foreign Direct Investment Picture The