International Business - Midterm Review
AFM 333 Midterm Review
Module 1:
- Fall of Berlin Wall 1989 - Two Trends altering global market: globalization of markets and technological advances - Globalization: interconnectedness of national economies, growing interdependence of buyers, producers and suppliers in different countries
G6 economies: US, UK, Japan, Germany, France, Italy - Account for half of global consumption with only 1/10 of population -
B6 economies: China, India, Russia, Brazil, Mexico, South Korea - China is the biggest market for phones, TVs, and cars in 2007 - China and India have more middle class households than all of the households in the United States - Growth in B6 more than 3x the growth in G6 economies
62 Multinationals in Fortune Global 500
20 of these multinationals are in China
12 from South Korea
6 from India
5 from Mexico and 5 from Russia
B6 have three times the labour force of G6 countries
33 million university-educated young professionals in developing world compared to 14 million in the developed world
300 000 IT Engineers in India vs. 50 K in US
In the decade to 2020, the working-age population of emerging economies is expected to increase by more than 500 million, compared with an increase of only 3.7 million in developed economies.
Drivers of Market Globalization - 1. Reduction of trade and investment barriers - 2. Market Liberalization: move to market based economies + adopt free trade in China + Soviet Union etc. - 3. Industrialization + Modernization + developing economies creating higher value adding products - 4. Integration of World Financial Markets: international banks, globalization of finance - 5. Advances in Technology: reduces cost and time, improves coordination and communication, facilitates development, helps share information/marketing, virtual space removes distance
Dimensions of Market Globalization - integration/interdependence of global
Module 1:
- Fall of Berlin Wall 1989 - Two Trends altering global market: globalization of markets and technological advances - Globalization: interconnectedness of national economies, growing interdependence of buyers, producers and suppliers in different countries
G6 economies: US, UK, Japan, Germany, France, Italy - Account for half of global consumption with only 1/10 of population -
B6 economies: China, India, Russia, Brazil, Mexico, South Korea - China is the biggest market for phones, TVs, and cars in 2007 - China and India have more middle class households than all of the households in the United States - Growth in B6 more than 3x the growth in G6 economies
62 Multinationals in Fortune Global 500
20 of these multinationals are in China
12 from South Korea
6 from India
5 from Mexico and 5 from Russia
B6 have three times the labour force of G6 countries
33 million university-educated young professionals in developing world compared to 14 million in the developed world
300 000 IT Engineers in India vs. 50 K in US
In the decade to 2020, the working-age population of emerging economies is expected to increase by more than 500 million, compared with an increase of only 3.7 million in developed economies.
Drivers of Market Globalization - 1. Reduction of trade and investment barriers - 2. Market Liberalization: move to market based economies + adopt free trade in China + Soviet Union etc. - 3. Industrialization + Modernization + developing economies creating higher value adding products - 4. Integration of World Financial Markets: international banks, globalization of finance - 5. Advances in Technology: reduces cost and time, improves coordination and communication, facilitates development, helps share information/marketing, virtual space removes distance
Dimensions of Market Globalization - integration/interdependence of global