International Business
Globalization and International Business
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LEARNING OBJECTIVES
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Globalization and International Business
To outline the historical perspective of globalization of business To explain the concept of globalization To elucidate the factors influencing globalization To discuss the various techniques for measuring globalization To examine the reasons for support and criticism of globalization To discuss global business expansion strategy for emerging market companies To explicate the concept of international business To delineate the motives for international business expansion To expound the strategy for managing business in the globalization era
1.1 INTRODUCTION
The forces of globalization have hardly been as intense before as to be explicitly evident as influencing our daily lives. The advents in information and communication technology (ICT) and the rapid economic liberalization of trade and investment in most countries have accelerated the process of globalization. Markets are getting flooded with not only industrial goods but also with items of daily consumption. Each day, an average person makes use of goods and services of multiple origins—for instance, the Finnish mobile Nokia and the US toy-maker’s Barbie doll made in China but used across the world; a software from the US-based Microsoft, developed by an Indian software engineer based in Singapore, used in Japan; the Thailand-manufactured US sports shoe Nike used by a Saudi consumer. The increased integration of markets— goods and financial—the mobility of people with transnational travels for jobs and vacations, and the global reach of satellite channels, the Internet, and the telephone all have virtually transformed the world into a ‘global village’. ‘Globalization’, one of the most complex terms used in international business, has wide connotations. Interestingly, ‘globalization’ is a term not only used and heard frequently, but also as often misused and misinterpreted.
1
1
LEARNING OBJECTIVES
Ø Ø Ø Ø Ø Ø Ø Ø Ø
Globalization and International Business
To outline the historical perspective of globalization of business To explain the concept of globalization To elucidate the factors influencing globalization To discuss the various techniques for measuring globalization To examine the reasons for support and criticism of globalization To discuss global business expansion strategy for emerging market companies To explicate the concept of international business To delineate the motives for international business expansion To expound the strategy for managing business in the globalization era
1.1 INTRODUCTION
The forces of globalization have hardly been as intense before as to be explicitly evident as influencing our daily lives. The advents in information and communication technology (ICT) and the rapid economic liberalization of trade and investment in most countries have accelerated the process of globalization. Markets are getting flooded with not only industrial goods but also with items of daily consumption. Each day, an average person makes use of goods and services of multiple origins—for instance, the Finnish mobile Nokia and the US toy-maker’s Barbie doll made in China but used across the world; a software from the US-based Microsoft, developed by an Indian software engineer based in Singapore, used in Japan; the Thailand-manufactured US sports shoe Nike used by a Saudi consumer. The increased integration of markets— goods and financial—the mobility of people with transnational travels for jobs and vacations, and the global reach of satellite channels, the Internet, and the telephone all have virtually transformed the world into a ‘global village’. ‘Globalization’, one of the most complex terms used in international business, has wide connotations. Interestingly, ‘globalization’ is a term not only used and heard frequently, but also as often misused and misinterpreted.