locations around the globe to capitalize on national differences in the cost and quality of factors of production like land, labor,. energy, and capital[r]
Trang 1International Business 9e
By Charles W.L Hill
Trang 2Globalization
Trang 3What 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
Trang 4What Is The Globalization of Markets?
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
Trang 5What Is The Globalization of Production?
locations around the globe to capitalize on national differences in the cost and quality
of factors of production like land, labor,
energy, and capital
lower their overall cost structure
improve the quality or functionality of their
product offering
Trang 6Why 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
Trang 7What 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 $15.5 trillion in 2009
facilitates global production
Technological change
microprocessors and telecommunications
the Internet and World Wide Web
transportation technology