EPPE3123 TOPIK 2a 2024
Page 1: Introduction to Globalization and International Business
Course Title: INDUSTRI & PERNIAGAAN ANTARABANGSA
Faculty: FAKULTI EKONOMI & PENGURUSAN
Course Code: EPPE3123
Instructor: ASSOC PROF DR MUSTAZAR MANSUR
Topic: Globalization & Developments in the World Economy, International Trade & Business
Page 2: International Business Overview
Title: International Business: The Challenges of Globalization
Edition: Tenth Edition
Chapter: 1 Globalization Today
Copyright Information: © 2023, 2019, 2016 Pearson Education, Inc. All Rights Reserved
Page 3: Learning Objectives
Identify Types of Companies in International Business
Large multinational corporations (MNCs)
Small and medium-sized enterprises (SMEs)
Firms from emerging markets
Explain Globalization
Importance of global markets and production
Detail Forces Driving Globalization
Summarize Globalization Debate
Identify Skills Developed in This Course
Page 4: Case Study - Apple’s Global Impact
Globalization Benefits for Apple:
Supports millions of apps
Produces and sells with minimal modifications globally
Reduces production and marketing costs
Supports a cohesive global brand strategy
Challenges of Globalization:
Rising nationalism
Trade wars
Page 5: International Business Defined
Definition: Transactions crossing international borders.
Imports: Goods/services purchased abroad and brought into a country.
Exports: Goods/services sold abroad and sent out of a country.
Page 6: Cultural, Political, Economic Factors
Influences on International Business:
Reflects various cultural, political, economic, and legal systems.
Geopolitical Issues:
U.S.-China tensions, supply chain vulnerabilities, COVID-19 impacts.
Skills Required in the Digital Economy:
New technical and social skills for 21st Century.
Page 7: Discussion Question
Question: How might the fourth Industrial Revolution impact production, marketing, and management in companies?
Page 8: Key Players in International Business (1/2)
Large Companies from Wealthy Nations
Firms from Emerging Markets
Small and Medium-Sized Companies
Definition of Multinational Corporation (MNC):
Business with direct investments in multiple countries.
Foreign Direct Investment (FDI):
Purchasing significant ownership or physical assets in another country for management control.
Page 9: Global Business Analysis
Comparing Large Corporations with Nations
Data sourced from “Fortune Global 500.”
Page 10: Key Players in International Business (2/2)
Born Global Firm Definition:
A company with global perspective from its inception.
Quickly achieves competitive advantage.
Examples include Airbnb, Uber, Spotify, TikTok.
Page 11: Quick Study Questions
Define:
International business, imports, exports.
Importance of Multinational Corporations
Characteristics of Born Global Firms
Page 12: Understanding Globalization (1/6)
Definition: Trend towards greater interdependence across national institutions/economies.
Key Characteristics:
Denationalization
Difference from internationalization.
Page 13: Largest Corporations by Home Country
Analyzing Data from “Fortune Global 500.”
Page 14: Economic Indicators
Gross Domestic Product (GDP):
Value of goods/services produced in a domestic economy in one year.
Gross National Product (GNP):
Value of goods/services from domestic and international activities in one year.
GDP/GNP per capita:
GDP/GNP divided by population.
Page 15: First Age of Globalization
Time Frame: Mid-1800s to 1920s.
Characteristics:
Mobile labor, free trade/capital movement.
Influence of large cargo ships and communications advancements.
Economic Activity: 10% of total annual output traded.
End of Era: Start of World War I.
Page 16: World Trade Trends
Figure 1.3: World Trade as a Percentage of GDP.
Page 17: Second Age of Globalization
Time Frame: 1989 to Present.
Triggers:
Fall of Berlin Wall, technological advancements.
Growth of economic blocs like EU and NAFTA.
Developments:
China's entry into WTO, U.S.-China trade disputes, COVID-19 disruptions.
Page 18: Globalization Score Analysis
Page 19: Globalization of Markets
Definition: Convergence of buyer preferences globally.
Benefits:
Reduces marketing costs, creates new market opportunities, levels income flows, accommodates local needs, and promotes global sustainability.
Page 20: Discussion Question
What other technology companies disrupted their industries?
Page 21: Globalization of Production
Definition: Global dispersal of production to minimize costs/maximize quality.
Benefits:
Access to lower-cost labor, technical expertise, and production inputs.
Page 22: Quick Study Questions
Globalization’s Influence: Effects on national institutions and economies.
Evolution of Globalization: Recent history and impacts.
Benefits from Globalization of Markets: Opportunities for companies.
Reasons for Globalizing Production: Strategic advantages.
Page 23: Drivers of Globalization
Falling Trade Barriers:
General Agreement on Tariffs and Trade (GATT): Treaty to promote free trade.
Tariffs: Taxes on traded goods.
Nontariff Barriers: Limits on import quantities.
World Trade Organization (WTO): Enforces international trade rules.
Page 24: Regional Trade Agreements
Key Agreements:
USMCA, EU, APEC.
International Organizations:
World Bank: Financing for economic development.
IMF: Regulation of exchange rates and international monetary rules.
Page 25: Discussion Question
What trade agreements is your country part of?
Page 26: E-Commerce as a Driver of Globalization
E-Commerce Definition: Use of networks for trade and customer service.
The Internet of Things (IoT): Devices controllable via the internet.
Page 27: Global Internet Users
Source: Data from Internet World Stats.
Page 28: Digital Transformation in Business
Key Terms:
Digitization: Converting information for digital use.
Digitalization: Utilizing digital technology for business operations.
Digital Transformation: Comprehensive change driven by digital technology for competitive advantage.
Page 29: Communication and Transportation Advances
Communication Technologies: Videoconferencing innovations.
Transportation Innovations: GPS, RFID, eco-friendly shipping policies.
Page 30: Discussion Question
Will videoconferencing remain prevalent post-pandemic?
Page 31: Quick Study Questions
Falling Barriers: Impact on globalization.
Role of E-Commerce and Digitization in globalization.
Advancements in communication and transportation effects on globalization.
Page 32: The Globalization Debate - Jobs and Wages (1/2)
Globalization Harms:
Manufacturing job losses, wage reductions, worker exploitation in lower-wage nations.
Page 33: Comparative Salaries
Source: International Average Salary Income Database.
Page 34: The Globalization Debate - Jobs and Wages (2/2)
Globalization Benefits:
Increased wealth/efficiency, labor market flexibility in developed nations, economic advancements in developing nations.
Page 35: Income Inequality Issues
Inequality Within Nations:
Wage gaps in rich nations.
Inequality Between Nations:
Growing income gaps between rich and poor nations.
Page 36: Discussion Question
Should global companies alleviate inequality?
Page 37: Cultural Arguments
For Globalization:
Profits from diverse circumstances and skills.
Against Globalization:
Potential loss of cultural diversity.
Page 38: National Sovereignty Concerns
Menace to Democracy?: Empowerment of supranational institutions vs. national governments.
Guardian of Democracy?: Promoting democracy globally.
Page 39: Environmental Impacts of Globalization
Support for Environmental Laws: Most international firms advocate reasonable regulations.
"Race to the Bottom": Concerns over environmental standards.
Page 40: Quick Study Questions
Summary of globalization’s impact on jobs and income inequality.
Arguments for/against globalization regarding cultures, national sovereignty, and the environment.
Page 41: Essential Workplace Skills
Employability Skills Developed:
Knowledge application, critical thinking, communication, ethical understanding, and social responsibility.
Page 42: Discussion Question
Which workplace skills will gain importance in the future?
Page 43: Global Business Environment Overview
Page 44: Quick Study Questions
Importance of specific workplace skills.
Employability skills fostered in this course.
Description of the Global Business Environment model used.
Page 45: Copyright Notice
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