Studies tend to agree that global inequality has fallen in recent decades

Studies tend to agree that global inequality has

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Studies tend to agree that global inequality has fallen in recent decades, though they disagree on the extent of the decline. DEBATE OVER CULTURE, SOVEREIGNTY AND THE ENVIRONMENT Globalization and Culture
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Critics say globalization homogenizes our world and lets MNCs destroy cultural diversity and wipe out small local businesses. Yet globalization allows nations to: (1) specialize and trade for goods they do not produce, (2) import other peoples’ cultural goods, and (3) still protect deeper moral and cultural norms. Globalization and National Sovereignty Globalization: menace to democracy? Supranational institutions with international goals and appointed officials undermine national sovereignty and democracy. Elected officials undercut democracy and local and regional authority with “international” agreements on citizens’ behalf. Globalization: guardian of democracy? Globalization has helped spread democracy worldwide (e.g., more democratic nations than ever). Some losses of sovereignty have had positive social impacts, as in human rights, workers’ rights, and discrimination. THE KEYS TO GLOBAL SUCCESS Communicate effectively Know the customer Emphasize global awareness Market effectively Monitor the global environment THE GLOBAL BUSINESS ENVIRONMENT The Global Business Environment Globalization is transforming our societies and commercial activities. It also increases competition everywhere, forcing companies to be vigilant. Each national business environment consists of unique cultural, political, legal, and economic characteristics. Companies must be attentive to nuances and adapt products and practices as needed. The international business environment influences how business is conducted so firms must closely monitor events. Context of international business management is defined by the characteristics of the national and international business environments. Managers must abide by the prevailing rules in each market in which it operates.
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BOTTOM LINE FOR BUSINESS Harnessing Globalization’s Benefits The most global nations tend to have the greatest equality, robust environmental protection, inclusive political systems, lowest levels of corruption, healthiest lifestyles, and be where women have achieved the most social, educational, and economic progress. The debate has opened a dialogue on how globalization can be harnessed to make its benefits exceed its costs. Intensified Competition Continued globalization is taking companies into previously isolated markets and increasing competitive pressures worldwide. As it gets easier and less costly to manage widely dispersed marketing and production activities, new opportunities and threats emerge.
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  • Fall '07
  • Nicholson

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