One World, Ready or Not Pennsylvania State University一个世界准备好或不宾夕法尼亚州立大学.pptVIP

Key Issues Current Economic Issues 1. Stagnation and slow growth 2. Surplus of goods 3. Difficult price competition MNE expansion into emerging markets “Multinational enterprises from every advanced nation and sector are elbowing one another to gain a footing in these emerging markets, imagining they will find relief from their persistent vulnerabilities…” (p.146) Why Expand into Emerging Markets? Surging demand equals larger customer base Increased market share New pools of cheap labor Low production costs, high profit margins “Suddenly, it seems, the rich need the poor – and the poor know it….[The poor countries] do not intend to tolerate another chapter of colonialist domination, but hope instead to exploit the insecurities of the global enterprises for their own advancement.” (p.146) The Costs of Expansion “The logical and more likely outcome is that the system’s underlying disorders, social and economic, will be seriously aggravated by this new wave of investment.” (p.146) Emerging countries will no longer tolerate colonialist domination They want to become first-class, advanced producers on par with the United States The Impending Storm New producers increase the surplus of goods Increased competition in exports Price wars Shakeouts on corporations and countries in order to reach “marketplace equilibrium” “…the system will try to adjust to the consequences…by imposing more rolling shakeouts on both corporations and countries – the painful episodes when firms, factories and workers are, somewhere in the world, declared redundant and discarded from the global production base.” (p.147) The Race to China “Facai zhifu shi guangrong de.” The Race to China “Facai zhifu shi guangrong de.” To get rich is glorious. China - If China succeeds in its plans to be high-ranking global producer… 1. Overcapacity of low-cost goods that wrecks other economies and destabilizes the multinational regime China - If China’s market fails to solve the p