ch01 Globalisation Essay

Submitted By Winston-Gu
Words: 2840
Pages: 12

CHAPTER
1
Globalisation

Copyright © 2013 McGraw-Hill Education Pty Ltd
Hill & Cronk, Global Business Today, 3e

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Lecture/chapter topics
• Introduction
• What is globalisation?
• The emergence of global institutions
• Drivers of globalisation
• The changing shape of the global economy
• The globalisation debate
• Managing in the global marketplace
• Summary of main themes
Copyright © 2013 McGraw-Hill Education Pty Ltd
Hill & Cronk, Global Business Today, 3e

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Introduction
• A fundamental shift is occurring in the world economy
– Integrated world economy
– Interdependent world economy

• Globalisation and opportunities
• Globalisation and threats

Copyright © 2013 McGraw-Hill Education Pty Ltd
Hill & Cronk, Global Business Today, 3e

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What is globalisation?
• Globalisation refers to the shift towards a more integrated and interdependent world economy.
• Facets of globalisation
– Globalisation of markets
– Globalisation of production
– Emergence of global institutions

Copyright © 2013 McGraw-Hill Education Pty Ltd
Hill & Cronk, Global Business Today, 3e

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What is globalisation?
• Globalisation of markets
– The historically distinct and separate national markets are merging into one huge global marketplace in which the tastes and preferences of consumers in different nations are beginning to converge on some global norm.
– Examples of consumer products:
 Prada fashions, Sony Playstation video games,
McDonald’s hamburgers (US), Nescafé coffee
(Switzerland), Nokia mobile phones (Finland), IKEA furniture (Sweden)

Copyright © 2013 McGraw-Hill Education Pty Ltd
Hill & Cronk, Global Business Today, 3e

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What is globalisation?
• Globalisation of production
– Sourcing goods and services from different locations around the globe in an attempt to take advantage of national differences in the cost and quality of factors of production, thereby allowing them to compete more effectively against their rivals. – Examples of globalisation of production:




Boeing’s 777 and 787 ‘Dreamliner’ commercial aircrafts
Lenovo’s ‘ThinkPad’ laptop
NightHawk Radiology Services

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Hill & Cronk, Global Business Today, 3e

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The emergence of global institutions • Over the past 60-plus years, a number of important global institutions have been created to:
– help manage, regulate and police the global marketplace – promote the establishment of multinational treaties to govern the global business system.

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Hill & Cronk, Global Business Today, 3e

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The emergence of global institutions • Examples of global institutions
– General Agreement on Tariffs and Trade (GATT): an international treaty that committed signatories to lowering barriers to the free flow of goods across national borders; a predecessor of the WTO
– World Trade Organization (WTO): responsible for policing the world trading system and ensuring that nations adhere to the rules established in WTO treaties Copyright © 2013 McGraw-Hill Education Pty Ltd
Hill & Cronk, Global Business Today, 3e

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The emergence of global institutions • Examples of global institutions (cont’d)
– International Monetary Fund (IMF): created to maintain order in the international monetary system
– World Bank (International Bank for Reconstruction and
Development): set up to promote economic development Copyright © 2013 McGraw-Hill Education Pty Ltd
Hill & Cronk, Global Business Today, 3e

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The emergence of global institutions • Examples of global institutions (cont’d)
– United Nations (UN) has four purposes:
 to maintain international peace and security
 to develop friendly relations among nations
 to cooperate in solving international problems and promote respect for human rights
 to be a centre for harmonising the actions of nations.

Copyright © 2013 McGraw-Hill Education Pty Ltd
Hill & Cronk, Global Business Today, 3e

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Drivers of…