Globalization
International Business
Lecturer : Eric Lam
M. Commerce (Marketing), M. Logistic Management, B Health Sciences
ericcklam@gmail.com
Lecture 1
Topic 1
Globalization
What Is Globalization?
The world is moving away from selfcontained national economies toward an interdependent, integrated global economic system Globalization refers to the shift toward a more integrated and interdependent world economy 1-3
What Is The
Globalization of Markets?
Historically distinct and separate national markets are merging
It no longer makes sense to talk about the
“German market” or the “American market”
Instead, there is the “global market”
falling trade barriers make it easier to sell globally
consumers’ tastes and preferences are converging on some global norm
firms promote the trend by offering the same basic products worldwide
1-4
What Is The
Globalization of Production?
Firms source goods and services from locations around the globe to capitalize on national differences in the cost and quality of factors of production like land, labor, and capital
Companies can
lower their overall cost structure
improve the quality or functionality of their product offering
1-5
Why Do We Need
Global Institutions?
Institutions
help manage, regulate, and police the global marketplace promote the establishment of multinational treaties to govern the global business system
Examples include
the General Agreement on Tariffs and Trade (GATT)
the World Trade Organization (WTO)
the International Monetary Fund (IMF)
the World Bank
the United Nations (UN)
1-6
What Do Global
Institutions Do?
The World Trade Organization (like its predecessor GATT)
polices the world trading system
makes sure that nation-states adhere to the rules laid down in trade treaties promotes lower barriers to trade and investment
The International Monetary Fund (1944) maintains order in the international monetary
Lecturer : Eric Lam
M. Commerce (Marketing), M. Logistic Management, B Health Sciences
ericcklam@gmail.com
Lecture 1
Topic 1
Globalization
What Is Globalization?
The world is moving away from selfcontained national economies toward an interdependent, integrated global economic system Globalization refers to the shift toward a more integrated and interdependent world economy 1-3
What Is The
Globalization of Markets?
Historically distinct and separate national markets are merging
It no longer makes sense to talk about the
“German market” or the “American market”
Instead, there is the “global market”
falling trade barriers make it easier to sell globally
consumers’ tastes and preferences are converging on some global norm
firms promote the trend by offering the same basic products worldwide
1-4
What Is The
Globalization of Production?
Firms source goods and services from locations around the globe to capitalize on national differences in the cost and quality of factors of production like land, labor, and capital
Companies can
lower their overall cost structure
improve the quality or functionality of their product offering
1-5
Why Do We Need
Global Institutions?
Institutions
help manage, regulate, and police the global marketplace promote the establishment of multinational treaties to govern the global business system
Examples include
the General Agreement on Tariffs and Trade (GATT)
the World Trade Organization (WTO)
the International Monetary Fund (IMF)
the World Bank
the United Nations (UN)
1-6
What Do Global
Institutions Do?
The World Trade Organization (like its predecessor GATT)
polices the world trading system
makes sure that nation-states adhere to the rules laid down in trade treaties promotes lower barriers to trade and investment
The International Monetary Fund (1944) maintains order in the international monetary