What Is Globalization?
Global markets
Global production
Globalization of world economy
The shift towards a more integrated and interdependent world economy
Globalization of markets
Coca-Cola, Levis’s Jeans, Sony Walkmans, and McDonald’s hamburgers
/>Globalization of production
To take advantage of national differences in the cost and quality of factors of production
Two key factors
The decline of barriers to trade
Increased technological capabilities
What Is Globalization?
Global markets
Global production
Globalization of world economy
The shift towards a more integrated and interdependent world economy
Globalization of markets
Coca-Cola, Levis’s Jeans, Sony Walkmans, and McDonald’s hamburgers
Globalization of production
To take advantage of national differences in the cost and quality of factors of production
Two key factors
The decline of barriers to trade
Increased technological capabilities
Globalization of Markets
Global Production
Global Telecommunications
What Forces Are Spurring Globalization?
Differences Between International and Domestic Businesses
Countries are different.
The range of problems are wider and more complex.
The intervention of governments that may limit international trade and investment.
The need to convert into different currencies.
Globalization – Pro
Lower prices for goods and services.
Economic growth stimulation.
Increase in consumer income.
Creates jobs.
Countries specialize in production of goods and services that are produced most efficiently.
Globalization – Con
Destroys manufacturing jobs in wealthy, advanced countries.
Wage rates of unskilled workers in advanced countries declines.
Companies move to countries with fewer labor and environment regulations.
Loss of sovereignty.
How does globalization affect you? Why should you care?
Ethics and Social Responsibility
Royal Dutch/Shell Human Rights in Nigeria (case)
Charting an Ethical Course in the Global Business Environment (video)
Globalization of Markets
Global Production
Global Telecommunications
What Forces Are Spurring Globalization?
Differences Between International and Domestic Businesses
Countries are different.
The range of problems are wider and more complex.
The intervention of governments that may limit international trade and investment.
The need to convert into different currencies.
Globalization – Pro
Lower prices for goods and services.
Economic growth stimulation.
Increase in consumer income.
Creates jobs.
Countries specialize in production of goods and services that are produced most efficiently.
Globalization – Con
Destroys manufacturing jobs in wealthy, advanced countries.
Wage rates of unskilled workers in advanced countries declines.
Companies move to countries with fewer labor and environment regulations.
Loss of sovereignty.
How does globalization affect you? Why should you care?
Ethics and Social Responsibility
Royal Dutch/Shell Human Rights in Nigeria (case)
Charting an Ethical Course in the Global Business Environment (video)