ch01_stdnt.pptVIP

Prentice Hall, 2004 Business Today 11e Chapter 1Globalization Chapter Preview Describe globalization Explain how globalization affects markets and production Identify the drivers of globalization Discuss the globalization debate List types of firms in international business Define the global business environment Globalization Trend toward greater economic, cultural, political and technological interdependence among national institutions and economies Globalization of markets Convergence in buyer preferences in markets around the world Globalization of production Dispersal of production activities worldwide to minimize costs or maximize quality Benefits of Globalization Globalization of markets Reduces marketing costs New market opportunities Levels income stream Globalization of production Access low-cost labor Access technical expertise Access production inputs Advice of Global Managers Know the customer Emphasize global awareness Develop world-class products Market effectively Improve logistics Analyze problems correctly Globalization Drivers I Remove barriers to trade / investment GATT WTO Regional trade agreements Globalization Drivers IITechnological Innovation E-mail and videoconferencing Better coordination and control Internet, intranets, and extranets Improved communications and management Transportation advancements More efficient, dependable shipping Globalization Then and Now Highly mobile labor market Fear of jobs moving abroad Free-flowing capital and trade Backlash among the disaffected Challenges to Business Physical security Assess company vulnerability and create a disaster recovery plan Digital security Guard proprietary information and confidential communications Reputational risk Require ethical and lawful behavior from all employees and business partners From Carnage to Civility Rage Violence Carnage Exclusion Vs. Reason Legitimacy Civility Debate Jobs and Wages Opponents Eliminates jobs in developed nations Forces wages lower in devel