...Discuss the Fukushima incident in the context of Globalisation Globalisation is a continuous practice, which advances the affiliation between countries through methods such as the use of technology and the decrease in the barriers of trade, which enables financial and investment markets to operate internationally. (International business environments and operations 2011) The Fukushima incident became an international catastrophe on March 11th 2011 when three reactors at the fifteen largest power plant the Dai-ichi nuclear power plant in north Fukushima, exploded after the back-up electrical systems were flooded; this triggered the reactors to overheat and subsequently caused the explosions. This allowed radiation to escape from the reactor chambers. Due to the explosions the plants were left unable to produce any nuclear energy, it also had an effect on a range of exports including shipping and the food industry due to the contamination of these products, causing huge problems for the Japanese economy as it was unable to export goods to other economies whose countries were unable to receive the goods. (International Financial Law Review,2011), Countries such as the US, Hong Kong and China are amongst the most likely to be affected by the nuclear impact on Japan’s food industry as they will need to find alternative exporters of food products such as leaf vegetables, spinach and milk. This is because these products have been affected by the radiation; therefore to prevent...
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...Analyse the effect of ‘Globalization’ on fashion with special reference to the impact of Japanese designs on the European scene. The definition of globalisation is quite complex and extremely controversial. However globalization with reference to the fashion industry helps defines the development of what has been termed as „world fashion‟. Preferred garments of young people is quite often the same. A phenomenon made possible by the exploitative mechanisms of globalization. The globalization of clothing manufacture, distribution, retailing online, and the global commodity advertising of both designer and high street brands, has impacted significantly on fashion and the way the industry operates. Alternatively the progress of the fashion industry through globalization can be defined by the political, economical, social, technological and cultural relations between countries. Such relationships within the global fashion industry are questioned to whether or not the globalisation of fashion is becoming beneficial or harmful to developing and developed countries. The fashion industry of today is one of the best examples of the effects of globalisation and its implications. Fashion is now able to take its manufacturing abroad as a result of globalization making it possible for the European fashion industries to produce clothing at increasingly lower prices. This allows the high street prices, or the retail price of fashion to be so low that the consumer, the fashion...
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...businesses need to be aware of the global context of their markets. Having read this chapter you should be able to: G G G G Learning outcomes understand the difference between globalisation and internationalisation outline the main elements of globalisation illustrate the role of the multinational enterprise introduce the implications of globalisation for business Key terms Capital market flows Consortium Cross-subsidisation Customs union Emerging economies Foreign direct investment (FDI) Franchising Free trade area Globalisation Hyperglobalisation Internationalisation International trade Joint venture Licensing Multinational enterprise (MNE) Regionalism Regional trade agreements (RTAs) Strategic alliance Transfer pricing Transformationalism Globalisation versus internationalisation 39 Introduction Businesses operate in a global context: even if they do not trade directly with other countries, they might be affected by a domestic shortage of skilled labour or may be subject to developments on the global financial markets. There is a difference between globalisation and internationalisation in the business literature but both result in increased exposure to global forces. This means that businesses need an understanding of the process of globalisation. The nature of globalisation is changing; it used to mean the...
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...Topic: Does globalisation pose a threat to cultural diversity The term globalisation is the movement and integration of people, ideology, economy, and culture beyond domestic and national boarders to other boarders around the globe thus growing the interconnectedness of various societies, economy, and culture. “Globalisation is a state of the world involving networks of interdependence and multi-continental distance” this definition of globalisation was offered by Harvard professors (Roberts Keohame, & Joseph Nye, pg105). We say that the course of globalization isn’t in any way a natural practice, i.e., a process that occurred as a result of human laws and orientation. Globalization seems to us as a deliberate, conducted process, the manifestation of an accurate cultural and economic model which carries a particular ideology or philosophy and a worldwide vision. This ideology has had a profound impact towards determining what people from all nook and cranny of the world believe. It has been generalised and made the global trend. For example; the case of American movies and hip hop music being seen as ideal and blueprints to everyone who want to venture into same field, and also the global urge to dress, talk, or even act American. At the pole position of this ideology are the Hollywood, and other multinational companies like McDonalds. Their actual Mother Nature necessarily linked to one specific country, even though they have their ancestries in the various part of world...
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...The Impact of Globalisation on Human Resource Management in Zambia: Gaining Competitive Advantage through Effective Management of Human Resources PDF Print E-mail National Chapters Introduction The concept of globalisation refers to an increasing flow of goods and resources across national borders and the emergence of a complementary set of organisational structures to manage the expanding network of international economic activity and transactions. Strictly speaking, a global economy is one where firms and financial institutions operate transnationally, i.e., beyond the confines of national boundaries. In such a world, goods, factors of production and financial assets would be almost perfect substitutes everywhere and would no longer be possible to consider national states as distinct economies. Globalisations is expected to accelerate growth in developing countries. This paper tries to examine globalisation in relation to the management of human resources. It tries to look at the effects of globalisation in terms of increased competition and how we can achieve competitive advantage through people. This is done by analysing the major activitiesactivities of human resource management and how they can be performed effectively. Human resource management in Zambia The management of human resources in Zambia has not been accorded the attention and seriousness it deserves. In most cases people appointed to man the human resource department are not trained or qualified...
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...LA TROBE UNIVERSITY SCHOOL OF ECONOMICS AND FINANCE SEMESTER ONE 2009 MID-SEMESTER EXAMINATION ECO2IBE: INTERNATIONAL BUSINESS ENVIROMENT Time Allowed: ONE (1) hour Reading time: 15 minutes This examination contributes 20 per cent of the assessment Pens, pencils and erasers (rubbers), and unmarked non-electronic English dictionaries are allowed. Students from non-English speaking backgrounds can bring unmarked non-electronic translation dictionaries Candidates must answer ALL questions Q1 (10 marks), Q2 (10 marks) This paper has THREE pages, including this one. Question 1 – very brief answers please 1) Globalisation refers to the process of moving towards a more integrated and inter-dependent world economy. What are two main drivers of globalisation? (1 mark) 2) Suppose that prior to NAFTA the USA produced its own textiles at a higher cost than Mexico, but imports them from Mexico after NAFTA. Is the USA worse off or better off? Is this a case of trade diversion or trade creation? (1 mark) 3) Suppose the USA had 20% duty on all imported textiles before NAFTA and it imported its textiles from China. After NAFTA, it imports from Mexico. Is there any trade diversion? (1 mark) 4) The USA has a highly skilled labour force and has lots of capital. China has a lot of cheap, unskilled labour compared with the USA. A fellow student, David, tells you that according to the Ricardian model of comparative advantage based...
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...More pain than gain Sep 14th 2006 From The Economist print edition Many workers are missing out on the rewards of globalisation RICH countries have democratic governments, so continued support for globalisation will depend on how prosperous the average worker feels. Yet workers' share of the cake in rich countries is now the smallest it has been for at least three decades (see chart 5). In many countries average real wages are flat or even falling. Meanwhile, capitalists have rarely had it so good. In America, Japan and the euro area, profits as a share of GDP are at or near all-time highs (see chart 6). Corporate America has increased its share of national income from 7% in mid-2001 to 13% this year. Like so many other current economic puzzles, the redistribution of income from labour to capital can be largely explained by the entry of China, India and other emerging economies into world markets. Globalisation has lifted profits relative to wages in several ways. First, offshoring to low-wage countries has reduced firms' costs. Second, employers' ability to shift production, whether or not they take advantage of it, has curbed the bargaining power of workers in rich countries. In Germany, for example, several big firms have negotiated pay cuts with their workers to avoid moving production to central Europe. And third, increased immigration has depressed wages in sectors such as catering, farming and construction. Most of the fears about emerging economies focus on jobs being...
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...Globalisation is the integration of a country to a global level. In this current century, people’s views are no longer between “country and them” but in fact are more likely to be the “world and them”. Kenichi ohmae, writer of “The borderless World” once mention in his book that globalisation that created a borderless world among country (Ohmae 1999). While globalisation has positive, innovative, dynamic aspects, it also has negative, disruptive, marginalizing aspects (UNDP 1999). Over the past 30 years, globalisation had brought new dimensions to the traditional economic thinking around trading trade. The existing of globalisation causes impacts in economic, political and social in the 21st century. Globalisation had rise tremendously since the advance of technology, science, and transport. Industries are moving to different country every second just from the help of these advanced technologies. Countries had lowered their barriers for international trade and welcoming foreign investment and trade. Corporation now have the flexibility of operate across borders and thus increase foreign investment in other country. Foreign investment will increase economic growth in many developing countries. A research done by African Economic Research Consortium for Nigeria proves that foreign direct investment positively affects their economic growth and needs to be encouraged (African economic research consortium 2007). China is the top ranked destination for foreign investors since year...
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...Globalisation is a phenomenon that poses great opportunities and should be pursued while recognising and addressing the costs. Globalisation takes various forms, yet defined here within the economic scope due to its strong contemporary prominence and impact. Economic globalisation entails the interactions and interdependence of global markets, due to increased mobility of goods, services, capital and communications. Globalisation is driven by many factors, including technological advancements and deliberate neo-liberalist policy. It is not a new phenomenon, yet contemporary globalisation differs dramatically in scale, penetrating more people and remote areas than ever before. Globalisation has many benefits such as economic growth and poverty reduction, yet on a domestic scale economies must be allowed to adapt, and the global economy must be managed on an international scale. Economic interdependence and advances leads to a safer, more democratic world. The forces of globalisation have been set in motion and are not able to be reversed, hence the world must recognise globalisation as inevitable, and work to reap the benefits. Globalisation is an encompassing term, taking various forms that describing the vast social, economic, cultural and political changes that arise due to interaction and integration of people, institutions and governments of different states. Due to contemporary impact, globalisation here is defined within the scope of economic globalisation, it is a process...
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...Research project: Hyundai globalisation strategy Executive summary The following report maps out Hyundai Motor Corporation’s (HMC) internationalisation strategy from its creation in 1967 to the current period. This strategy can be chronologically divided into four phases according to HMC’s objectives and rationale for expansion at different stages of its existence. From the research carried out, it appears that HMC’s choices of specific internationalisation patterns at different stages essentially stemmed from: The dynamics of the relationship between HMC, the Hyundai business group and the South Korean economic and political environment; Political, social and nationalistic incentives deriving from the specificities of Chaebol management and later the influence of the Asian crisis on this management and decision taking processes; Korea’s initial factor dotation, i.e. the prevalence of certain factors over others which pushed the company to seek knowledge and resources abroad at a very early stage; The replication of Japanese strategies (Nissan, Mitsubishi, Toyota). - Due to the complexity of HMC’s environment, strategy over time cannot be illustrated using a single internationalisation framework. The report therefore discusses two different frameworks – namely Porter’s diamond and Dunning’s eclectic paradigm – to analyse the company’s strategy at different stages of its international development. 2 06/06/2013 Research project: Hyundai globalisation strategy Introduction ...
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...“The Effects of Globalisation on Australia” Economic, Social, Cultural, Environmental and Political Word Count: 1,638 Table of Contents Table of Contents 2 Executive Summary 3 Introduction 4 Economic 5 Social 7 Cultural 9 Environmental 10 Political 11 Conclusion 12 References 13 Executive Summary The effects of Globalisation on Australia can be disseminated into a number of different categories. For the purposes of this report five major categories including Economic, Social, Cultural, Environmental and Political have been explored and summarised but is by no means exhaustive. The overall effects and impact of globalisation on Australia may well be positive to the general population, but there will always be those who are disadvantaged, and those who have increased advantages. In this report the authors attempt to separate the above mentioned elements and treat them individually. It should be noted however that it is extremely difficult to do so as many issues interact and overlap with some or all of the elements of globalisation, as globalisation has been in existence since the stone-age. “Just as the concept of globalisation is contested and multifaceted so are the choices available to citizens and governments.”[i] Introduction How one views ‘the effects of globalisation on Australia’ will very much be determined if one defines globalisation in its broader sense or otherwise. Globalisation seems to be the catch phrase of the 21st Century...
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...familiar, examine the actual and potential impacts of globalisation on that company. Explain the reasoning behind the points you make. Evaluate possible strategies going forward which the company might use to respond to the impacts you have identified. 1. INTRODUCTION Globalisation is a word that is frequently being used by everyone, from politicians to businessmen and is often referred to closely united economies worldwide, with products, people and money moving easily; in greater volume and value throughout the world. It can be defined as “the process of transformation of local phenomena into global ones. It can be described as the process by which the people of the world are unified into a single society and function together. This process is a combination of economic, technological, sociocultural and political forces.” (Wall, Minocha and Rees, 2010, pg 14) Under the economist’s view point, globalisation focuses on: - • Growth of international trade • Increase in international capital flows • The developing control of multi-national company’s (MNCs) into the domestic and global markets Globalisation is not new, but is “a product of the industrial revolution. Britain grew rich in the 19th century as the first global economic superpower,” (BBC, 2011) due to its greater manufacturing technology and improved global communications such as steamships and railroads. However the possibility speed and scale of globalisation has accelerated radically since World War...
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...Discuss the Role and Impacts of Transnational Corporations in the Global Economy (40 marks) Transnational Corporations (TNCs) are companies which are able to co-ordinate and control its production, in more than one country during economic globalisation, examples of which include Nike, McDonalds and IKEA. These companies use differences between a country’s cost of production, natural resources, labour and state incentives to their advantage. This allows them to spread their resources and production between locations globally to minimise cost to the company. In recent decades the increasing wealth of TNCs has led to more dominated roles in the global affairs this has many impacts on the economy, global population and environment both positively and negatively. Transnational corporations have a very large role to play in the global economy. With the economies of developing countries, such as China and Brazil, generally growing due to the exchange of information and goods (globalisation) companies are keener to invest in them to increase their turnovers and overall development. TNCs have globally increased new job opportunities and new tax revenues even for the poorest of countries, by doing so they have contributed in reducing the levels of world poverty and have improved infrastructure for developing countries. TNCs are also incredibly wealthy. Ford and General Motors are two companies which exemplify the wealth of TNCs. Their combined annual income is equal to the GDP of all...
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...Table of Contents The Impact of Globalisation on Multinational Companies 2 Introduction 2 McDonalds’ Introduction 3 Globalisation and McDonald’s 3 Globalisation strategy of McDonald 5 1. Think Globally but Act Locally 7 2. Pricing 8 3. Advertising/Promotional strategies 8 4. Social responsibility 9 Challenges for McDonald 10 Conclusion 11 Reference 12 The Impact of Globalisation on Multinational Companies Introduction Globalization is a term used to describe the trend of growth; trade practices between undertakings perform beyond the geographic and economic boundaries, so that they exist (Waters, 2001 Brinkman, Brinkman, 2002). Globalization is used to describe the nature of the dominant international trade and business, as they are no longer limited to serving specific groups of consumers in the country (Levy, Hammond and Gross, 2003), the globalization of the increase is due to the expansion of economic and capitalist drive to achieve growth, and taking existing resources , improve the degree of efficiency of the operation. Thus, globalization is also very closely related to the outsourcing companies seeking to existing units, the production moved to another country, economically sensitive wage labour. A typical example of this is the first McDonald's in 1955 as a company in California, opened in 2013, is now in 195 countries and has more than 30,000 restaurants. This process, because it is difficult to control, some multinational companies responsible...
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...geographical locations? Like many other concepts within the social sciences, globalisation is a highly debated and controversial issue with a diversity of opinions ranging across a broad spectrum. At one end of the spectrum, there are those who view globalisation as the source of many of the major social problems currently affecting developing countries. At the other, are those who view it as a process that will dissolve boundaries between nations and promote global unification. Similarly, definitions of the terms ‘Global North’ and ‘Global South’ are just as varied with the term ‘globalisation’ also carrying many different and often contrasting meanings. According to Modelski, Devezas and Thompson (2008, p.13), globalisation is not a new concept but rather, diachronic, or ‘a process in time’. The authors viewed globalisation as a historical process, the understanding of which required tracing it far back into the past (Modelski et al. 2008, p. 13). However, Heywood (2007, p. 143) suggests, that because globalisation refers to such a wide range of things, e.g. policies, strategies, processes or an ideology, it may be concluded ‘slippery and elusive’ understanding of globalisation arises from its involvement in so many different areas of academia and the extensive and continuing discussion therein surrounding its properties. Regardless of different views on the definition and scope of globalisation, ‘Global North’ and ‘Global South’ have more specific criteria, although these...
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