Lecture 8 Globalization

Lecture 8 Globalization - 1 Lecture 8 Globalization What is...

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Unformatted text preview: 1 Lecture 8 Globalization What is the meaning of globalization and what are its driving forces? Has Canada gained or lost in the new global economy? Chapter 7: Karakowsky Additional readings on Tariffs and Softwood Lumber Film: Life and Debt Case: Softwood Lumber (p. 287) Foreign Investment Laws (K. p.289) 2 A process involving the integration of world economies facilitated by bodies such as NAFTA, EU, APEC, ASEAN etc. The integration of world markets Free movement of goods/service, capital and labour Includes cross border transactions, FDI & economic interdependence DEFINING GLOBALIZATION 3 MODES OF FOREIGN MARKET ENTRY What strategies can firms use to sell globally? (channels for global business) Exporting goods/services Contractual agreements and Strategic Alliances: Outsourcing Licensing/Franchising Marketing/distribution agreements Foreign Direct Investment: Joint ventures Wholly-owned subsidiaries (greenfield ventures or acquisitions) 4 THE BORDERLESS CORPORATION Transnational Corporations Indicates that the nationality of the organization is unclear There is no allegiance to a particular country or location e.g. Nestle, Coca Cola, McDonalds, Nortel Financial, technological, humancapital are easily transferred between countries Ownership & management are international Firms follow the profits!! 5 Benefits & Threats of MNCs/TNCs BENEFITS THREATS Economic development e.g. creates employment No allegiance to host country Brings management expertise Mobile profits Introduces new technology & relevant training Power held in home country e.g. R & D investments International trade Difficult to control Unites cultures & nations 6...
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Lecture 8 Globalization - 1 Lecture 8 Globalization What is...

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