Topic 1 - Overview + The Challenge and Future of Globalisation

Why do companies engage in international business

market seeking, resource seeking, to diversify or reduce risks

The globalisation of markets

merging of distinct and separate markets in one huge marketplace

What has the globalisation of markets done to consimer preferences

tastes are convering on some global norm which creates these global markets

What is the most global of markets

industrial goods and materials

What was the majority of early outsourcing

manufacturing

What was the benefit of globalisation of production

lower overall cost structure, improvement of the quality/functionality of a product

What are the four flows that connect the world

trade, capital, information, people

What do global institutions do

help regulate the global marketplace, promote multinational treaties

What are these global institutions

World trade organisation, international monetary fund, world bank, united nations, G20

What are the growth drivers of international business

expansion of tech, liberalisation of cross border trade and resource movements, growing consumer pressures and rising wealth, increased global competition, change in the demographics of the world economy

What are the myths of globalisation

uniformity, ubiquity, statelessness, concentration, limitless growth, act of faith

Myths of globalisation - uniformity

companies cannot compete in the same way everywhere

Myths of globalisation - ubiquity

not all global companies compete in all major markets

Myths of globalisation - statelessness

companies usually have a home base

Myths of globalisation - concentration

globalisation has not made industries become more concentrated

Myths of globalisation - Limitless growth

there is an end to growth

Myths of globalisation - act of faith

globalisation is option to be evaluated, not an imperative

Benefits of globalisation

economic growth, new jobs, increases competitiveness and innovation, reduces consumer prices, increases consumer choices, increases information flows, provides developing countries with access to foreign capital and tech, cultural intermingling, increases international cooperation

Negatives of globalisation

destroys jobs in developed countries, exploits labour in places with weak labour laws, environmental destruction, weakens national sovereignty, increases income gap within and between nations, exploitation of tax havens, influence political decisions, accelerates the spread of diseases

The current state of globalisation

global trade is returning to pre-pandemic levels, no evidence that the would is dividing into trading blocs, US and China decoupling continues, public policy shift against globalisation

What are the future scenarios of international business and globalisation

further globalisation is inevitable, international business will grow more regional than global, forces work against further globalisation