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Globalization of markets and the internationalization of the firm (Firm…

- - - - Have now moved from being low value-adding commodity producers to sophisticated, competitive producers and exporters of premium products.
      - Brazil is now a leading manufacturer of Embraer commercial Aircraft
  - - - Takes place through networks of international commercial banks
- - - - The EU has adopted free trade among its member countries and harmonised fiscal and monetary policies and business regulations
  - - - Value Chain: The sequence of value-adding activities the firm performs in the course of developing, producing, marketing and servicing a product.
    - - These include such organizations as the World Bank, International Monetary Fund, and World Trade Organization.
- - - - Ernst & Young relocated much of its accounting support work to the Philippines MNEs create millions of jobs aboard, which help raise living standards
  - - - Nike was criticized for paying low wages to shoe factory workers in Asia, some of whom worked in sweatshop conditions
  - - - Walmart's internal economy - its total revenues - is larger than the GDP of many of the world's nations, including Israel, Greece, and Poland
    - - Countries with many competing firms, one company cannot force customers to buy its products or force suppliers to supply it with raw materials
      - Company performance depends on the firm's skill at winning customers, working with suppliers, and dealing with competitors
      - To minimize globalization's harm and reap its benefits, governments should ensure the freedom to enter and compete in markets, protect private property, enforce the law, and support voluntary exchange through markets rather than through political processes.
- - - - SNS provide the means to communicate directly with millions of connected individuals in new markets