1 Introduction Class notes

1 Introduction Class notes - Introduction: What is...

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Unformatted text preview: Introduction: What is Globalization? 1 MOR 492 Global Strategy What is Globalization and the Global Marketplace, really ? Introduction: What is Globalization? 2 MOR 492 Global Strategy Definition of u Globalization is the trend toward a more integrated global economic system u Examples: telecommunications, automobiles, computers, credit cards, etc. Introduction: What is Globalization? 3 MOR 492 Global Strategy What is u The Globalization of Markets The merging of historically distinct and separate national markets into one huge global market place Convergence of consumer tastes and preferences u Citicorp credit cards, Coca-Cola, Levis, Sony Walkman, Nintendo, McDonalds, etc. Introduction: What is Globalization? 4 MOR 492 Global Strategy u Globalization of Markets (Continued) The most global of markets are for industrial goods and materials u Markets for Commodities u aluminum, oil, wheat u Markets for Industrial Products u microprocessors, DRAMs, commercial jet aircraft u Markets for Financial Assets u T-bills, Eurobonds, futures Same multinationals compete with each other in multiple national markets Introduction: What is Globalization? 5 MOR 492 Global Strategy u Globalization of Production The tendency of firms to source goods and services from different locations around the globe to take advantage of national differences in the cost and quality factors or production (such as labor, energy, land, and capital) u Global web of suppliers Introduction: What is Globalization? 6 MOR 492 Global Strategy Drivers of Globalization u Declining Trade (tariffs) and Investment Barriers u General Agreement on Tariffs and Trade (GATT) u World Trade Organization (WTO) The lowering of trade and investment barriers has allowed firms to locate production optimally almost anywhere in the world Home markets are now under attack from foreign competitors Introduction: What is Globalization? 7 MOR 492 Global Strategy u The Role of Technological Change Microprocessors and Telecommunications u As costs of telecommunications fall, so do the costs of coordinating and controlling global organizations Internet and the World Wide Web u Information backbone of the global economy u Greatly increased across-border transaction u Location, scale and time no longer become Introduction: What is Globalization?...
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This note was uploaded on 02/25/2009 for the course MOR 492 taught by Professor Voigt during the Spring '07 term at USC.

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1 Introduction Class notes - Introduction: What is...

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