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1、International Business Globalization 1 Outline:What is globalization?Globalization of Markets Globalization of Production Drivers of globalization The changing demographics of the global economy The globalization debate2 I.What is globalization?3 Your life in the global village 4 What is globalizati
2、on?the shift toward a more integrated and interdependent world economy.integrated becoming part of a group or society and be accepted by them.interdependent depending on or necessary to each other.5II.Globalization of market 6 Two key facets of globalization the globalization of markets the globaliz
3、ation of production 7 Globalization of markets the merging of historically distinct and separate national markets into one huge global marketplace 8 consumers and products in the global market consumers:same tastes and preferences products:with universal needs 9 Firms benefit and compet in the globa
4、l market products,brand names,marketing,operating strategies differences in global markets e.g.Promoting cars:the factors to be considered:-fuel costs;-income levels -traffic congestion;-cultural values best marketing:-matching conditions in a country11https:/ http:/ of production 13 Globalization o
5、f 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 sourcing:around the globe to take advantage of national differences -lowering cost -improving q
6、uality -competing effectively 141516 “global product”Boeing will outsource 65%of its 787 aircraft to foreign companies.1819202122http:/ Xi Jinping delivers the keynote speech at the opening ceremony of the annual conference of the Boao Forum for Asia 2018.“Chinas reform and opening-up meets its peop
7、les aspiration for development,innovation and a better life.It also meets the global trend toward development,cooperation and peace.”IV.Drivers of Globalization 23 Drivers of globalization declining trade and investment barriers technological change 24 declining trade and investment barriers the Wor
8、ld Trade Organization(WTO)Eight rounds of tariff negotiations by GATT (General Agreement on Tariffs and Trade,1947-1994)-decline in tariffs -removing barriers in non-tariff issues 25164 members(29 July 2016)26 Global institutions promote the globalization the International Monetary Fund(IMF)the Worl
9、d Bank(WB)the United Nations(UN)27 What are the implications of declining trade barriers for the globalization of markets?Lower trade barriers：helping companies view the world as a single market28 source:WTO.World Trade Statistic Review 2017,p.1029 source:WTO.World Trade Statistic Review 2017,p.1130
10、 What are the implications of declining investment barriers for the globalization of production?Lower investment barriers：helping companies establish production in optimal locations around the globe 3132Source:UNCTAC,World Investment Report 2017,p.99WTO Trade Facilitation Agreement(TFA)provisions:th
11、e movement,release and clearance of goodsmeasures:for effective cooperation between customs provisions:for technical assistance and capacity building 3334 Drivers of globalization technological change -microprocessors and internet lowered the cost of global communication 35 e.g.global electronic pro
12、curement exchange B2B e-procurement -identify potential buyers and suppliers -catalogue purchases:products available updated in real time 36 over 2,000 stores in more then 88 countries.the information techniques：14 days from design to appearance in the retail stores a low inventory and a quick respo
13、nd to customers needs 37 Drivers of globalization technological change -transportation technology commercial jet aircraft super freighters and containers 38 What are the implications of technological change for the globalization of markets?Low cost communications:electronic global marketplaces Low c
14、ost transportations:goods suitable for consumer tastes and preferences.39 What are the implications of technological change for the globalization of production?Lower transportation costs -global production more economical -quick respond to customer demands4041V.The changing demographics of the globa
15、l economy 42 the changing world output picture More developing economies rapidly are catching up with the developed world.http:/databank.worldbank.org/data/download/GDP.pdf43 the changing world trade pictureWorld merchandise trad recorded its lowest growth rate in volume terms in 2016 partly due to
16、continuing weakness in the global economy.44 source:WTO.World Trade Statistic Review 2017,p.6045Most leading traders are from developed economies.the changing world trade picture 4647 source:UNCTAD.World Investment Report 2017,p.2 the changing foreign direct investment picture FDI recovery remains b
17、umpy,with diverging trends among regions and developed economies maitained their larger share.48495051 the changing of the multinational enterprise52http:/ These are the companies shaping the world.54VI.The globalization debate 55 Is the shift toward a more integrated and interdependent global econo
18、my a good thing?56Antiglobalization Protests November 1999 the Third Ministerial Conference of the WTO,Seattle57Anti-globalization protesters at almost every major meeting of a global institution58 A Korean farmer committed suicide on December 2005-the 6th WTO Ministerial Conference59 globalization,
19、jobs,and iIncome Critics:Jobs lost in advanced economies Supporters:Economy as a whole is better off.60 globalization,labor policies,and the environment Critics:less developed countries with lax environmental and labor regulations Supporters:As countries get richer,they raise their environmental and
20、 labor standards.61 globalization and national sovereigntyCritics:Nations give power to the organizations.Supporters:Members support the organizations.62 globalization and the worlds poorCritics:gap between rich and poor and the benefits not shared equallySupporters:bad government,poor countries.63 What does globalization mean for you?be aware of:-having a global view -international rules and guidelines -gaining some updated knowledge and skills -learning by doing 64