13. Globalization and BGs Relationships

13. Globalization and BGs Relationships - 13 Globalization...

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13. Globalization and BGS Relationships Globalization 0. “Globalization is the expansion and intensification of linkages and flows – of people, goods, ideas and cultures – across national borders.” Bosworth and Gordon, from Brookings Review 0. trend towards greater interdependence among national institutions and economies 1. requires a mental attitude characterized by: 0. tolerance to accept the cultural peculiarities of others 1. knowledge of international strategies, marketing, finance, and communication 2. skills to be aware of opportunities and threats in the business environment and to manage across borders 1. Critics 2. Historical opposition to globalization 3. Today, demonstrations (often large and violent) accompany every meeting of the WTO and other international trade forums. 4. Ralph Nader, “The essence of globalization is a subordination of human rights, of labor rights, consumer, environmental rights, democracy rights, to the imperatives of global trade and investment.” 5. Protestors: include environmentalists, animal rights activists, consumer advocates, and many other 3. claim that the world is not sharing equitably in the profits of globalization. 4. less developed countries suffer and profit less. 5. less developed countries cannot always compete when trading with developed countries 6. globalization is homogenizing the world and destroying the diversity of cultures claim globalization has resulted in environmental degradation 2. Others claim 6. all stakeholders benefit 7. 8. allows specialization in producing what the country does most efficiently 9. that evidence suggests that the artistic influence of developing nations has grown Expansion of Globalization 0. Technology, communication is cheaper than ever- aids the expansion of globalization 1. Increased exposure to the world 2. Growth of multinational corporations 3. increase in ability to move money and take advantage of financial markets 4. more countries are becoming receptive to free market ideas 5. transportation costs have been comparably reduced 6. easing of trade barriers and restrictions 7. regional trade agreements 8. increasing foreign competition 9. The U.S. corporations respond to manufacturing threats from abroad 0. Partnerships with suppliers reduces costs 1. Coordination of functional departments 2. Outsourcing 3. Increasing foreign direct investments 4. Improving productivity 5. Forming combinations with other companies: mergers, acquisitions, and alliances 6. Consortiums: combination to take advantage of and research new tchnology 7. Expanding regional trade agreements Regional Economic Integration
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0. Agreements among countries in a geographic region to reduce and ultimately remove all barriers to free movement of goods, services, and production factors between them 1. benefits are determined by the extent of trade creation compared to trade diversion 2. trade creation- higher cost domestic producers are replaced by lower cost producers in the trade
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This note was uploaded on 03/26/2009 for the course BA 4307 taught by Professor Ritchey during the Spring '09 term at University of Texas at Dallas, Richardson.

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13. Globalization and BGs Relationships - 13 Globalization...

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