Globalization (Is An Interdependent Global Economy A Good Thing?…
Is An Interdependent Global Economy A Good Thing?
Supporters believe that increased trade and cross- border investment mean;
1) Lower prices for g&s
2) Greater economic growth
3) Higher consumer income & more jobs
Critics worry that globalization will cause;
1) Job losses
2) Environmental degradation
3) Cultural imperialism of global media & MNEs
Anti-globalization protesters now regularly show up at most major meetings of global institutions
What Is The Globalization of Production?
Firms source g&s from locations around the globe to capitalize on national differences in the cost &. quality of factors of production like land, labor, energy, and capital
1) Lower their overall cost structure
2) Improve the quality / functionality of their product offering
How Does Globalization Affect Jobs And Income?
Critics argue that falling barriers to trade are destroying manufacturing jobs in advanced countries
Supporters contend that the benefits of this trend outweigh the costs
Countries will specialize in what they do most efficiently & trade for other goods and all countries will benefit
What Is The Globalisation of Markets?
What are the causes?
1) Falling trade barriers make it easier to sell globally
2) Consumers’ tastes & preferences are converging on some global norm
3) Firms promote the trend by offering the same basic products worldwide
How Does The Global Marketplace Affect Managers?
Managing international business differs from managing a domestic business because;
1) Countries are different
3) Firms have to find ways to work within the limits imposed by government intervention in the international trade & investment system
2) International transactions involve converting $ into different currencies
4) Range of problems confronted in an international business is wider and the problems more complex than those in a domestic business