Global Business Essay

Today 6e by Charles W. L. Hill Chapter 1 globoseisation Introduction In the earthly concern economy today, we see fewer equanimous case economies with high barriers to cross-border trade and investment a more coordinated global economic system with lower barriers to trade and investment almost $4 trillion in foreign exchange transactions victorious place everyday (in 2012) over $18. 2 trillion of goods and some $3. 5 trillion of services being sold across subject area borders the memorial tablet of international institutions ttp//www. ge. com/ http//www. ikea. com/ Chapter 1 globalization Effects of globalization can be seen everywhere the cars race drive the food people eat the jobs where people work the clothes people wear Chapter 1 globalization WHAT IS globalisation? globalisation refers to the shift towards a more integrated and interdependent world economy. Two key facets the globalization of markets the globalization of production Chapter 1 orbicular ization The Globalization of Markets /14/2013 1 7 8 9 Globalization of markets the fact that in many industries historically distinct and separate national markets are merging into one huge global marketplace in which the tastes and preferences of consumers in different nations are beginning to converge upon some global norm. Examples Smart Phones (iPhone, Android, etc. ) + Apps Coca-Cola/ Starbucks- McDonalds hamburgers Apple iPad/ Samsung Tablet- IKEA furniture Chapter 1 Globalization The Globalization of ProductionGlobalization of production the tendency among many firms to spring goods and services from different locations around the globe to take advantage of national differences in the cost and quality of factors of production (such as land, labor, capital, and energy), thereby allowing them to grapple more effectively against their rivals. Exampleshttp//www. vizio. com/ BoeingLenovoVizio (B787 65% outsourced) (design US case, keyboard, HD Thailand http//www. oeing. com/n ewairplane/display, memory S. Korea Wi-Fi Malaysia assy Mex. ) http//www. lenovo. com/planetwide/select/selector. html Chapter 1 Globalization THE EMERGENCE OF GLOBAL INSTITUTIONS Global institutions help manage, regulate, and police the global market place promote the composition of multinational treaties to govern the global business system General concord on Tariffs and Trade (GATT) after WWII Chapter 1 Globalization 2/14/2013 2