Presentation on theme: "1 Globalization Welcome to Chapter 1, Globalization."— Presentation transcript: 1 1 Globalization Welcome to Chapter 1, Globalization. Show
2 Chapter Objectives Identify the types of companies that participate in international business Describe the process of globalization and how it affects markets and
production Describe the two forces causing globalization to increase Summarize the evidence for each main argument in the globalization debate Describe the global business environment and identify its four main elements In this chapter, you will come to understand the scope of international business. You will also: Acquaint yourself with the types of companies active in international business. Learn about
globalization, how it alters marketing and production activities, and the forces causing it to expand. Look inside the debate between the supporters of and opponents to globalization. Explore a model of the global business environment.
3 Apple User-Centered Design Outsource Production Markets Globally
4 International Business 5 Business that has direct investments abroad in multiple countries
6 Global Firms vs. Nations 7 Globalization of production
8 Benefits of Global Markets
9 Global Sustainability: Three Markets, Three Strategies 10
Benefits of Global Production
11 Labor and Resources Today, companies can access workers and resources in favorable business climates almost
anywhere in the world. A global electronics company can outsource production to an Indonesian supplier. And Volkswagen can produce automobiles in Brazil, some of which are exported to other markets. Companies can access workers and resources in favorable business climates almost anywhere in the world 1 - 11 11
12 Discussion Question What benefits might companies obtain from the globalization of markets and the globalization of
production? What benefits might companies obtain from the globalization of markets and the globalization of production? 13 Answer to Discussion Question
14 Globalization Drivers (1) Falling Barriers
15 Trade Exceeds Output Global and regional trade agreements are increasing global trade and cross-border investing. Growth in global
trade is occurring so rapidly that it is exceeding the pace of growth in world output. 16 Globalization Drivers (2) Technological Innovation 17 Measuring Globalization 18 Globalization Then and Now 19 From Anarchy to Debate Rage Reason Violence Legitimacy Carnage 20 Discussion Question __________ is the value of all goods and services produced by a country’s domestic
and international activities over a one-year period. a. Gross Domestic Product b. Gross National Product c. GNP Per Capita __________ is the value of all goods and services produced by a country’s domestic and international activities over a one-year period. a. Gross Domestic Product b. Gross National Product c. GNP Per Capita
21 Answer to Discussion Question 22 Jobs and Wages Opponents Supporters Eliminates jobs in 23 Salaries of IT Workers To support their position that globalization raises living standards in emerging markets, advocates point to anecdotal evidence like that shown in this figure. By taking advantage of globalization
and outsourcing jobs to lower-wage countries, businesses are helping form a solid, middle class in many emerging markets. Source: Based on data obtained from the International Average Salary Income Database ( 1 - 23 23 24 Labor, Environment, &
Markets 25 Manager’s Briefcase: The Keys to Global Success 26 Income Inequality debate
27 Inequality between Nations 28 Income Inequality debate
29 Discussion Question What does the evidence suggest for each branch of the debate on globalization and income inequality?
What does the evidence suggest for each branch of the debate on globalization and income inequality? 30 Answer to Discussion Question
31 Impact on Culture Opponents Supporters Destroys cultural diversity 32 Culture Matters: The Culture Debate 33 National Sovereignty Opponents Supporters
34 Global Business Environment 35 Discussion Question The textbook you are using in this course describes a model of international business as occurring within a dynamic and integrated system called the __________. a. Cultural Business Model b. Globalization Environment c. Global Business Environment The
textbook you are using in this course describes a model of international business as occurring within a dynamic and integrated system called the __________. a. Cultural Business Model b. Globalization Environment c. Global Business Environment 36 Answer to
Discussion Question
37 Copyright © 2014 Pearson Education, Inc. What is the concept of international business?International business definition
International business focuses on any commercial activity or transaction between companies, organizations, individuals, or government entities that crosses borders into different countries and regions.
What is the role of international business in the global economy?International business also increases competition in domestic markets and introduces new opportunities to foreign markets. Global competition encourages companies to become more innovative and efficient in their use of resources. For consumers, international business introduces them to a variety of goods and services.
What are 3 reasons why international business is important?Participation in international business allows countries and their enterprises to leverage their local comparative advantage, their unique specialized expertise, and an abundance of different factors related to the production of and delivery of goods and services into the international marketplace.
Which one of the following can best describe born global firms?Which of the following can best describe born global firms? companies that adopt a global perspective and engages in international business from the start.
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