Please describe the concept of gloalization and the drivers behind it
The worldwide movement towards economic, financial, trade and communications integration.
opening of local and national perspectives to broader and interconnected and interdependent world with free transfer of capital, goods across nations
vanishing of inter-country boarders in terms of:
Tarrifs, customs, and other trade barriers
Customers preferences
technologies and work skills
—
Drivers:
Lowering trade barriers: tarrifs, quotas…
Investment barriers (GATT)
Technological advances:
Transportation
Manufacturing
Information transfer
Communication
Example:
BMW plant in South Carolina
Microsoft head office in Munich
What are negative effects of globalization and are there positive aspects that stand against these?
Pro
extension of markets
new production and sourcing possibilities
Internationalisation of value chain
use knowledge from all over the world
german engeneering, Japanese construction…
Apple does this well
Intensified competition: new entrants
more jobs for developing countries (if produced in these “poor” countries
countries are able to create some wealth
lower conflict risk - if dependencies -> no need for a war
transprtation (railroads and ocean shipping)
communications
Con
rapid spread of monetary or financial crises
loss of national sovereignty
Offshoring + Flight of jobs
effect on the poor
just workforce for rich countries
low wages
what would happen without globalization?
sustainability
culture
Who is pro?
poor countries: Nigeria, Brazil, India
China
“richer countries” against it (especially France)
How did the GDP distribution over the regions change within the last 20 years? Give an explanation.
west to east
population growth
Asia, Europe and US = 80% of global GDP
Asia growing
Solution: Innovation
major change: ASIA gained importance
America, Europe (classics) stayed stable / lost a little
MAIN DRIVER: CHINA AFTER WW II
What are cultural and commercial risks that a company is facing in international business?
political, legal system
What are country related and financial risks that a company is facing in international business?
currency
always present but managable
managers need to proactive reduce adverse effects
argentina inflation rate 80%
What is the difference between comparative and competitive Advantage? Give examples for both.
comparative:
Country superior / nation
unique benefit in global competition
Russia - gas
India - Labour
Australia - bauxite
saudi arabia - oil
US - Software
competetive advantage: company
firm
derived from costs, size or strenths
Tesla - software
Dell - global supply chain
P&G - Marketing
Apple - brand / design
SAP - ERP software
What is the international hunting line?
developing economies chasing for emerging, emerging chasing for advanced
South Korea more advanced, Brazil rather developing
GDP: highest in industrial countries
once China is able to produce the same products —> create cheaper —> HUNTING
If Developing countries develop —> might take Chinas place
How can countries change their position within the international hunting line?
INNOVATION is the only way out for western industrialized nations
new technologoical levels
China produces products that origin in EU etc
Advanced companies have to maintain innovation level —> are hunted —> have to stay strong
TVs are not produced in EU any more
takeover
Zuletzt geändertvor 2 Jahren
