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Lecture 28 - 11.3.2008

Lecture 28 - 11.3.2008 - AEM1200 Introduction to Business...

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AEM1200, Introduction to Business Management Monday 11/3 Globalization and International Business Globalization, international trade and comparative advantage The Multinational Enterprise Globalization: Good or Evil? What is Globalization? A process which increases the share of trade in global GDP (Adams and Juleff, 2003) The process of creating an economy with the capacity to work as an unit in real time on a planetary scale (Castells, 1996) The process by which people, information, trade, investment, democracy and the market economy are tending more and more to cross national borders (Norberg, 2003) Drivers of Globalization Technological Innovation Information technology Logistics and transportation Technological transfer and education International business and finance Multinational corporations International finance and capital markets Convergence of tastes and preferences Institutions United Nations International Monetary Fund and World Bank World Trade Organization (ex – General Agreement on Trade and Tariffs) Why Trade?
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