MGMT 650 chapts Review items 1-6

MGMT 650 chapts Review items 1-6 - Materials, Ch. 1-6...

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Materials, Ch. 1-6 Pursuing globalization and living it differ from mere involvement in international business activities. More important, the rise of global thinking and practice has made business interests and orientations more necessary then ever. Global trade expended rapidly from 1600 to 1800. Forbes magazine indicates that between 1870 and 1910 the free flow of labor was impressive and capital moved freely among major countries. In the second half of the nineteenth century, 15 million people crossed the Atlantic to settle in North America. It is not Free Trade between any two countries that is the true aim; but to remove obstacles in the way of the stream of the freely exchanging commodities, that ought to like the Oceanus of primitive geography, to encircle the whole habitable world. Globalization is defined as a set of beliefs that foster a sense of connectivity, interdependence, and integration in the world community. At the firm level, the globalization should mean the ability of corporation to conduct business across borders in an open market, maximizing organizational benefits, without inflicting social damage or violating the rights of people from other cultures. Global Corporation should treat globalization as a view and outlook that broadens and energizes human minds and perspectives. Practically and spiritually, globalization must be inclusive rather than exclusive, endeavor. The pillars of globalization are open trade and vital civil and legal institutions that uphold individual and group rights while facilitating social and economic integration. Industrial Revolution helped to connect European and overseas economies in complementary development patterns that transmitted changes in the rhythm of economic growth in the industrial world overseas. World economy is broader in terms of the number of national markets that are engaged; it is deeper in terms of the density and velocity of interaction and flows of trade and finance; and the dominant mode of organization of world economic transactions has changed significantly from the market (trade and portfolio) investment to internationalization of production through MNCs. Capital now moves with startling speed around the world. Each day over $1 trillion is traded in a global foreign exchange market that never closes.
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Even small- and medium- sized companies recognize that the competition for market share is global, and that participating in the global economy is no longer a choice but a necessity. FDI flows set a record as International Corporation responded to economic liberalization in various countries. Inflows increased by 39 percent, to $644 billion. While outflows rose 37 percent, to $649 billion. Increases in FDI inflows in 1998 exceeds the growth in the nominal value of world gross
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This note was uploaded on 09/21/2011 for the course ECON 101 taught by Professor Flah during the Spring '10 term at Punjab Engineering College.

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MGMT 650 chapts Review items 1-6 - Materials, Ch. 1-6...

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