IBUS Notes – Chapter 1

Globalization of capital money 4 convergence of

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Unformatted text preview: - - - - - - Market Globalization : An Ongoing Framework o Pg. 8 Dimensions of Market Globalization o Multi- faced phenomenon with 6 major dimensions 1) Integration and interdependence of national economies a. Value chain: sequence of value- adding activities performed by firm in the course of developing, producing, marketing & servicing a product 2) Rise of regional economic integration blocs a. NAFTA, APEC, reduced trade & investment barriers 3) Growth of global investment & financial flows a. Globalization of capital (money) 4) Convergence of consumer lifestyles and preferences a. Everyone is beginning to have similar tastes, less differences between countries 5) Globalization of production a. Firms are forced to reduce cost of production & marketing 6) Globalization of services a. Means to reduce cost Drivers of Market Globalization 1) Worldwide reduction of barriers to trade & investment 2) Market liberalization and adoption of free markets 3) Industrialization, economic development, and modernization 4) Integration of world financial markets 5) Advances in technology * Technological Advances o May be the most important driver of market globaliz...
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This note was uploaded on 02/12/2014 for the course IBUS 311 taught by Professor Chen during the Spring '08 term at Binghamton University.

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