reflect essay
ccc777
Week7-presentation.pptxWeek 7
BUSI7280 The challenge and future of golbalisation
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Module 2
Why do businesses internationalize their operations?
What challenges does globalization face in the current international environment?
Where does golbalization fit into the management story?
International Management Report
Your report to your CEO on the risks and opportunities for your organization presented by globalization.
Questions?
Group assignment
Choice of organization
Choice of country
Due October 14
2,000 words
30% of grade
International Management Report
Choosing your group
Meeting regularly
Contributions from each member
Presenting to class
Presenting to the company bard of directors
One presenter?
Possible problems
This week’s work
Understanding the drivers of globalization and its acceleration
Examining the data used to gauge globalization
Understanding the problems of globalization
Considering the future of globalization
Understanding globalisation
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From where do you start your understanding of globalisation?
Individually
Note what you thought about in the mindfulness pause.
Look behind that thinking to see what your assumptions are?
In small groups
Explain what globalisation means to you; and
what values/judgements/assumptions underpin your view
Globalization in the textbooks
‘Institutions’ = formal and informal rules of doing business in another country – focus on external environment
‘Resources’ = business/organization specific capabilities which facilitate international operation
Institution-based view
Resources-based view
Not a new phenomenon but accelerating
https://www.youtube.com/watch?v=5SnR- e0S6Ic
A process involving the internationalization of;
Consumption
Markets
Production
Globalisation is a shift towards a more integrated world economy
Boeing 787 Dreamliner
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Political/policy factors
Government stability
Taxation policy
Foreign trade regulations
Social welfare policies
Deregulation
Economic
factors
Business cycles
GDP trends
Interest rates
Inflation
Unemployment
Disposable income
Legal factors
Competition law
Contract law
Employment law
Health and safety
Product safety
Global factors
Terrorism
Financial crises
Trade boycotts
Wars
New political regimes
Creation of trade blocs
Socio-cultural factors
Population demographics
Income distribution
Social mobility
Lifestyle changes
Attitudes to work and leisure
Consumerism
Levels of education
Technologicalfactors
Government spending on research
Government and industry focus on technological effort
New discoveries/developments
Speed of technology transfer
Rates of obsolescence
Environmental factors
Environmental protection laws
Waste disposal
Energy consumption
So why do businesses engage in international operations?
Market-seeking – to expand sales: pursuing international sales increases the potential market and potential profits
Resource-seeking – to acquire resources: may give companies lower costs, new and better products, additional operating knowledge
To diversify or reduce risks: international operations may reduce operating risk by smoothing sales and profits, preventing competitors from gaining advantage
Story so far:
Businesses seeking to internationalize face plenty of difficulties
And they no longer have empires to help them.
Is there another way of looking at globalization?
Here’s the orthodox view: https://www.youtube.com/watch?v= ZNejKHKSbl0
Pros of Globalization
Promotes economic growth
Creates employment
Increases competitiveness (and innovation)
Reduces consumer prices
Increases consumer choices
Increases information flows and spread of ideas
Provides access to foreign capital and technology
Promotes understanding
Increases international co-operation
Cons of Globalization
Destroys jobs
Exploits labour
Causes environmental destruction
Loss of national sovereignty to international bodies
Increases income gap between nations
Increases tax avoidance
Increases ‘foreign interference’
Accelerates the spread of communicable diseases
Three continents, many nations
300 years from c.1570
Massive European capital accumulation
Fuelled industrialization and initiated empire building
100 million dead
25% on first voyage
25% in first months of arrival
25% in first years
Slave trade as first truly global business
Hidden history?
IMF’s summary of globalisation of frisk
Higher macroeconomic risks due to lower growth, greater uncertainty and weaker confidence
Weak commodity prices – oil and commodity-exporting countries have been severely affected by falling commodity prices
Uncertainty about economic rebalancing in China
Reduced confidence in the ability of policy-makers to offset the effects of rising economic, financial, and geopolitical risks
Rising credit risks due high asset valuations and low interest rates
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How are recent changes impacting on globalization?
Small groups – report group?
How have recent policy/political changes in China, India, Russia, USA, Turkey, Brazil impacted on globalized trade and business operations?
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International Management Report Workshop
Getting started – group discussion
Where does your organisation stand in respect of:
Opportunities and challenges in operating internationally
Impacts of globalisation and how to adapt to them
Recent development in industry, sector or countries of operation
