...\ eighth edition Global Business Today CharlesW. L Hill University of Washington McGraw-Hill Irwin contents PREFACE xiii PART ONE Chapter One Introduction 4 What Is Globalization? 6 The Globalization of Markets 6 The Globalization of Production 7 The Emergence of Global Institutions 9 Drivers of Globalization 11 Declining Trade and Investmen t Barriers 11 The Role of Technological Change 14 The Changing Demographics of the Global Economy 16 The Changing World Output and World Trade Picture 16 The Changing Foreign Direct Investment Picture 18 The Changing Nature of the Multinational Enterprise 19 The Changing World Order 22 The Global Economy of the Twenty-First Century 23 The Globalization Debate 24 Antiglobalization Protests 24 Globalization, Jobs, and Income 26 Globalization, Labor Policies, and the Environment 28 Globalization and,National Sovereignty 29 Globalization and the World's Poor 30 Managing in the Global Marketplace 31 Key Terms 33 Chapter Summary 33 Critical Thinking and Discussion Questions 34 Research Task 34 Closing Case: Legal Outsourcing 35 Introduction and Overview 2 Globalization 3 PART TWO Chapter Two Country Differences 36 National Differences in Political Economy 37 Opening Case: Ghana: An African Dynamo 37 Introduction 38 Political Systems 39 Collectivism and Individualism 39 Democracy and Totalitarianism 42 Economic Systems 44 Market Economy 44 Command Economy 45 Mixed Economy 45 Legal Systems 46 Different Legal Systems 46 Differences...
Words: 2427 - Pages: 10
...CHAPTER 1 INTRODUCTION TO GLOBAL MARKETING SUMMARY A company that engages in global marketing focuses resources on global market opportunities and threats. Successful global marketers such as Nestle, Coca-Cola, and Honda use familiar marketing mix elements – the four Ps – to create global marketing programs. Marketing, R&D, manufacturing, and other activities comprise a firm’s value chain; firms configure activities to create superior customer value on a global basis. Global companies also maintain strategic focus while pursuing competitive advantage. The marketing mix, value chain, competitive advantage, and focus are universal in their applicability, irrespective of whether a company does business only in the home country or has a presence in many markets around the world. However, in a global industry, companies that fail to pursue global opportunities risk being pushed aside by competitors. A firm’s global marketing strategy (GMS) can enhance its worldwide performance. The GMS addresses several issues. First is nature of the marketing program in terms of the balance between a standardization (extension) approach to the marketing mix and a localization (adaptation) approach that is responsive to country or regional differences. Second is the concentration of marketing activities in a few countries or the dispersal of such activities across many countries. Companies that engage in global marketing can also engage in coordination of marketing activities. Finally...
Words: 4952 - Pages: 20
...BUSN 8 3 The World Marketplace: Business Without Borders Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LEARNING OUTCOMES 1 Discuss business opportunities in the world economy 2 Explain the key reasons for international trade 3 Describe the tools for measuring international trade 4 Analyze strategies for reaching global markets 5 Discuss barriers to international trade and strategies to surmount them 6 Describe the free-trade movement and discuss key benefits and criticisms Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. BUSN8 | CH3 2 1 Business Opportunities • Advancement in technology and reduction of barriers to trade have made the individual economies interdependent • Results in better communication with increased competition and shifting opportunities Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. BUSN8 | CH3 3 Reasons for International Trade • Access to factors of production • International trade helps even out some of the resource imbalances among nations • Reduced risk • Global trade reduces dependence on one economy, lowering the risk for multinational firms • Inflow...
Words: 1599 - Pages: 7
...Botswana and Diamonds Table of Contents Cover Page 1 Table of Contents 2 Executive Summary 3 Global Business Analysis: Market of Botswana and Diamonds 4 Global Business Opportunities 4 Economic and Geographic Environment 4 Social and Cultural Environment 4 Political and Legal Environment 5 International and Local Competition 5 Economic and Geographic Environment 5 Managing International Financial and Business Risks 6 Characteristics of Global Management Information Systems (MIS) 6 Characteristics of Global Human Resources 7 Characteristics of Global Marketing 7 Product Target Market Planning for Foreign Markets 7 Designing a Global Distribution Strategy 8 Selecting an International Pricing Strategy 8 Determining Organizational Financial Results 9 Key Success Factors for Global Business 9 Monitoring and Control 9 Recommendations 10 Conclusion 10 Appendixes 12 Executive Summary This business analysis is in reference to a foreign direct investment into a diamond business within Botswana. This analysis provides the information to determine, if Botswana is a viable country for investment. The pertinent information is in reference to the country’s culture, economy, geography, resources and other factors that will assist with our analysis. In conclusion, a favorable recommendation is given for investment in a diamond mining business in Botswana. Global Business Analysis: Market of Botswana and Diamonds Botswana population is over two million...
Words: 2142 - Pages: 9
...evaluate the progression of becoming an international marketer. To see how international marketing concepts influence international marketers. To appreciate the increasing importance of global awareness. 1.1 The Internationalisation of Business 1.2 International Marketing Defined 1.3 The International Marketing Task 1.4 Environmental Adjustment Needed 1.5 Self-reference Criterion: An Obstacle 1.6 Becoming International 1.7 International Marketing Orientations 1.8 Globalisation of Markets 1.9 Developing a Global Awareness 1.10 Orientation of International Marketing Summary The first section of International Marketing offers an overview of international marketing and a discussion of the global business, political and legal environments confronting the marketer. International Marketing is defined as Performance of Business activities beyond national borders. The task of international marketer is explained. Key obstacles to international marketing are not just foreign environments but also our won self reverence criteria (SRC) and ethnocentrism. This section deals exclusively with the uncontrollable elements of the environment and their assessment. The next section offers modules on assessing international market opportunities. Then, management issues in developing global marketing strategies are discussed. In each module the impact of the environment and culture on the marketing process is illustrated. Space prohibits an encyclopaedic...
Words: 6310 - Pages: 26
...Globalization and International Business 45 49 44 CASE: The Global Playground Introduction 48 W h a t Is International Business7. The Forces Driving Globalization 50 Factors in Increased Globalization 51 What's Wrong with Globalization? 56 Threats to National Sovereignty 56 Economic Growth and Environmental Stress 57 Growing Income Inequality 57 s | Point ^J3ffi^S^^3 ' Offshoring Good Strategy? 58 Why Companies Engage in InternationaLBusiness Expanding Sales 60 , Acquiring Resources 60 Minimizing Risk 60 60 Modes of Operations in International Business Merchandise Exports and Imports 62 Service Exports and Imports 62 Investments 63 Types of International Organizations 63 Why International Business Differs from Domestic Business 64 Physical and Social Factors 65 The Competitive Environment 67 Looking to the Future: 61 Three Ways of Looking at Globalization 68 C A S E : Carnival Cruise Lines: Exploiting a Sea of Global Opportunity 69 74 Summary Key Terms 75 Endnotes 75 An Atlas 78 Map Index 86 Contents • 2 PART TWO COMPARATIVE ENVIRONMENTAL FRAMEWORKS 90 91 90 The Cultural Environments Facing Business 94 95 C A S E : The Java Lounge—Adjusting to Saudi Arabian Culture Introduction The People Factor Cultural Awareness 96 97 A Little Learning Goes a Long Way The Nation as a Point of Reference How Cultures Form and Change The Idea of a "Nation": Delineating Cultures 98 99 98 Language as Both a Diffuser...
Words: 3378 - Pages: 14
...(Course Leader) Guest Speakers : Subject to confirmation from the guest speakers - Riri Riza/Mira Lesmana, MILES Film (Session 5) Topic: Indonesia Movie Industry - Richard Matalon, President Director L’Oreal Indonesia (Session 12) Topic: L’Oreal strategy entering Indonesia - Vikram Reddy, GM Four Seasons Hotel Jakarta (Session 16) Topic: Four Seasons Global Strategy Background Companies today confront an increasing array of choices of markets, of locations for value adding activities, and of modes of crossing borders. This course focuses on the international dimensions of strategy and organization, and provides a framework for formulating strategies in an increasingly complex world economy, and for making those strategies work effectively. Operation in an international environment gives the manager access to new markets, additional natural resources, and low-cost-factor endowments. More importantly, it opens up new sources of ideas and knowledge to stimulate future innovation. Above all, global markets provide a vast new source of the scarcest of all corporate resources: management talent. On the other hand, these new opportunities present the challenges of managing in more complex, diverse, and uncertain circumstances. Students will learn about...
Words: 6165 - Pages: 25
...Chauhan Roll No: 09 PGDM IB 2013-15(IIIrd trim) GUIDE: Dr. POONAM CHAUHAN GUIDE: Dr. POONAM CHAUHAN International Marketing Strategy in Automobile Sector in Emerging market International Marketing Strategy in Automobile Sector in Emerging market Research Paper Research Paper Abstract Globalization has not only opened up new avenues for MNEs, but has also benefitted the emerging nations who have adapted to it. It has formed the basis of growth and development for most emerging nations of course other factors too are relevant). This research paper seeks to examine the international marketing strategies of MNEs in the automobile industry, specifically for the emerging nations, because as our subsequent findings will prove, that these markets are currently the most promising and will remain so at least for a few years to come. When we consider the emerging nations, the most promising ones are obviously the BRICs (reasons covered in the following sections). Hence, for readability and convenience purposes, we have limited our research to these nations. Keywords: Marketing strategy, BRIC, TRIAD, MNE, emerging markets, JV Objectives of Study: 1) International Marketing strategies followed by automotive companies in Emerging markets. 2) The study also aims at understanding whether the marketing strategy of these global automotive companies are justified by analysing its impact on the key statistically significant numbers of a company, i.e. the net...
Words: 4313 - Pages: 18
...Global Issues in Business Week 5 Case Analysis DeVry University Federal Way, Washington Summary In the case study “,” it discusses the history of Procter & Gamble’s foreign business strategy and some of the problems they incurred along the way. It also covers some of their business strategy changes the company introduced in order to become more profitable in a changing world economy along with a more globalized less restrictive trade and business environment. It’s summarized with a detailed discussion regarding P & G reorganization and complete restructuring of the company to control its costs by having European plant closures and layoffs. Questions 3 a, b, c a. What strategy was Procter & Gamble pursuing when it first entered foreign markets in the period up until the 1980s? Procter & Gamble clearly used an international strategy for their expansion into foreign markets throughout a large portion of the 20th century. Not until they began to experience slower growth, profits and sales in the in the early 1990’s did they take a serious look into their business model for international expansion. But up to this pint they were unparalleled by any other competitor as the chart shows below. (2) b. Why do you think this strategy became less viable in the 1990s? I feel there are several defendable reasons that P&G’s business strategy began to lose its effectiveness it has had years prior. First, the changing global market created a...
Words: 584 - Pages: 3
...the region. It is intended to first define the current security environment of the Americas and the relations between Brazil and Venezuela with that of the United States of America (United States) and China. Thereafter, China’s economic and domestic agenda in the Americas will be examined with hypotheses of the emerging global power potential growth success, challenges or possible collapse in her foreign policy. The likely consequences facing Brazil, Venezuela and the United States will also be examined. The assessment will be done across a continuum of China’s realized economic growth, development of hostile relations due to competition for scarce energy sources or possible collapse due to the country’s internal problems. Finally, the research seeks to encourage proactive thinking by the United States on China’s increasing political and military influence in the region and its possible underlying agenda of becoming the next global super power or hegemony. Introduction A general perception persists in the Caribbean and Latin America that the United States is disinterested in the security of the region with its emphasis placed on the global war on terror in the Middle East – Iraq and Afghanistan. As stated by Flanagan,...
Words: 9457 - Pages: 38
...inclusive Wealth report 2012 measuring progress toward sustainability Summary for DeciSion-makerS unu-iHDP Secretariat of the International Human Dimensions Programme on Global Environmental Change conTriBuTorS Science Advisor Partha Dasgupta – university of cambridge Report Director anantha Duraiappah – iHDP executive Director Science Director Pablo muñoz – iHDP academic officer Report Authors matthew agarwala – London School of economics and Political Science Giles atkinson – London School of economics and Political Science/centre for climate change economics and Policy edward B. Barbier – university of Wyoming elorm Darkey – university of Bonn Partha Dasgupta – university of cambridge anantha Duraiappah – iHDP Secretariat Paul ekins – university college London Pablo fuentenebro – iHDP Secretariat Juan Sebastian Lozano – The nature conservancy (colombia) kevin mumford – Purdue university Pablo muñoz – iHDP Secretariat kirsten oleson – university of Hawaii Leonie Pearson – university of melbourne charles Perrings – arizona State university chris Perry – un-Water Decade Programme on capacity Development (unW-DPc) Steve Polasky – university of minnesota Heather Tallis – Stanford university Stacie Wolny – Stanford university Report Review Board John agnew – university of california, Los angeles Peter Bartelmus – Bergische universitaet Wuppertal/columbia university Julia Bucknall – World Bank Dabo Guan – university of Leeds michael Harris – university of Sydney...
Words: 8722 - Pages: 35
...the New Global Economy and Strategies for Competing Globally APA Headings | Level | Format | 1 | Centered, Boldface, Uppercase and Lowercase Headings | 2 | Left-aligned, Boldface, Uppercase and Lowercase Heading | 3 | Indented, boldface, lowercase heading with a period. Begin body text after the period. | 4 | Indented, boldface, italicized, lowercase heading with a period. Begin body text after the period. | 5 | Indented, italicized, lowercase heading with a period. Begin body text after the period. | 1. Introduction. Provide a brief focus statement about your paper and what the reader can expect. 2. Global World Economy. Discuss the importance of globalization in today’s global economy. 3. Cultural and Political Differences. Discuss cultural and political differences that global managers consider when expanding abroad. Are values and ethics different in each culture? Explain. 4. Going Global Strategies. Explain why companies are forced to expand globally. Discuss possible strategies for competing globally. Evaluate the advantages and disadvantages of the different strategies and policies that firms use to enter foreign markets. What are the main factors that influence a firm’s decision of market entry? 5. Suggestions and Recommendations. Provide practical and specific recommendations and suggestions for managers and expatriate to expand in this country of your choice for this project. 6. Summary. Provide...
Words: 4369 - Pages: 18
...paragraph is the summary of the global environment and consequences of a global economy which can lead to global strategy. How the world economy is becoming more integrated than ever before. The global economy is becoming more integrated than ever before. For example, the World Trade Organization (WTO), formed in 1995, now has 153 member countries involved in more than 95 percent of the world’s trade. The newest members are Cambodia, Nepal, Russia, Saudi Arabia, Tonga, Ukraine, and Viet Nam (The International Monetary Fund, set up by the United Nations in 1945, serves a similar purpose and includes 185 countries). The WTO provides a forum for nations to negotiate trade agreements and procedures for administering the agreements and resolving disputes. Integration of the global economy means for individual companies and their managers. The increasing integration of the global economy has had many consequences. First, even as the output of the world’s economies surged during the middle of the past decade, international trade expanded even faster. When trouble in the financial industry sparked an economic downturn, European and North American imports declined, and other world trade growth slowed. But those trends are expected to be temporary, eventually reversing as economic conditions improve. Also in Chapter 6, the strategies organizations use to compete in the global marketplace. One of the critical tasks an international manager faces is to identify the best strategy for competing...
Words: 811 - Pages: 4
...Globalization Summary Statement Introduction: We find from Globalization101, that globalization can be defined as “a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology” (2014). In our current era, technology allows for the development of international partnerships which gives nations and businesses the ability to connect on a more efficient level than was previously attainable. Globalization also allows for the abolition of barriers to trade, communication. Accordingly, before the Internet, Globalization did exist but was less refined than it currently is. From Jones, one will also learn that Globalization can also allow for the abolition of barriers to trade, communication and cultural exchange in an effort to promote the prosperity of all nations involved. There are of course two sides for globalization, critics assure that globalization will result in global turmoil and wrought ruinous results while proponents argue that it will allow for increased financial health in the global economy. Body: Due to the increase of technologies available to world-wide businesses, executives can now communicate effectively with satellite locations without losing the main focus of the organization. Because of this new concept there has been an increase in globalization. Globalization will never be rendered completely obsolete as financial systems...
Words: 704 - Pages: 3
...WORD COUNT: 1894 GLOBAL WARMING AND THE SOCIETY Executive Summary Global warming is a significant issue in modern society; it threatens environment, global security, prosperity, and development. This paper will review how global warming involves the concept of ‘business as usual’, its effects on the global economy and how to deal with global warming by using international co-operation (action). In addition, I will propose a strategy trying to address the global warming concerns. Introduction Climate change has become one of the major issues of debate and concern around the globe during the last decades. The effects and causes of global warming are more visible day by day. There are many complex issues caused by global warming, on a global scale, as a Sir Nicholas Stern’s review demonstrated, if we do not take adequate measures to mitigate the climate change, the longer-term costs would be disastrous, overweighting the costs of an early action in which obviously international community should be involved (Stern 2008). Furthermore, all parties need to be encouraged to make the international arrangements work, such as the Kyoto Protocol in the 90’s and the Copenhagen Accord more recently. Moving forward, it is necessary to include how the world has been progressing since Kyoto was established, to a more renewed and complete agreement, the Copenhagen Accord. Currently, a large number of nations involved in the fight against global warming will meet to discuss how to implement...
Words: 2031 - Pages: 9
