Globalization - International integration that occurs from interchange of world views, products, ideas, and other aspects of culture.
Globalization
... [Show More] Opportunities - *demand for new products
*lower labor cost
*less expensive natural resources
*operate internationally to increase revenue and lower cost.
Economic Effect on Globalization - *widespread international movement of goods, capital resources, services, information, etc.
*countries are increasingly interdependent by border-crossing movement of goods, technologies, information, etc.
Political Effect on Globalization - *reduces importance of nation-states.
*SuperGroups (EU, WTO, G8) replace or reserve national functions to facilitate international agreements.
Cultural Effect on Globalization - *increased cross-cultural contracts which decreases uniqueness of once-isolated communities.
*Internet helps shared content and spreads English language
*Cultural Globalization Homogenation
*Antiglobalization
Cultural Globalization Homogenation - Referred to Critics as the preference of American culture at the expense of other cultures.
Antiglobalization - Critics oppose Cultural Globalization in fear of losing smaller cultures
Cons of Globalization - *Benefits Rich vs. Poor
*Currency Manipulation
*Gini Coefficient
*Happy Planet Index
*Large Corporations have power to influence the government at the expense of the local population
Pros to Globalization - *Increased Development
*Increased Awareness of International Community
*Jobs are Created
Gini Coefficient - A measure of income inequality within a population, ranging from zero for complete equality, to one if one person has all the income.
Happy Planet Index (HPI) - a measure that combines quality of life and sustainability
International Business Types - *Business (For Profit)
*Governmental Bodies
*National NGO's
Business (for Profit) - person or business/organization engaged in commerce to obtain profit (financial/economic)
Government Bodies - International Embassies and Consulates
*treaties (trade issues/child labor/environmental)
-NAFTA
-Kyoto Protocol
National NGO - include any non-profit voluntary citizens group organized on a local, national, international level
*Globalization fostered NGO's b/c problems couldn't be solved on a single-nation evel
*EXAMPLE: World Social Forum
World Social Forum - an annual meeting of civil society organizations, first held in Brazil, which offers a self-conscious effort to develop an alternative future through the championing of counter-hegemonic globalization.
*rival convention to the World Economic Forum held every January in Switzerland.
5 Stages of Entering a Global Market - *Market Entry
*Product Specialization
*Value Chain Disaggregation
*Value Chain Reengineering
*Creation of New Markets
4 Drivers of Globalization - *Market - (Opportunities for Scale, Cost Advantages due to increased output, decrease in cost)
*Cost - (Economies of Scale, Economies of Scope)
*Competition - (Seeking new markets, high levels of trade, competitive diversity, and interdependence)
*Government - ( Trade Policies, Technical Standards, Policies, Regulations, Favorable Policies)
"World is Flat" Perspective - *Based on Globalization 1.0, 2.0, 3.0.
The internet opens up new spaces, promotes social and political advances for all people, everywhere. This idea is making the world smaller and smaller.
(Theory by Friedman) [Show Less]