...How changes in technology have contributed Q. Explain How Changes In Technology Have Contributed Towards Globalization Of Markets And Of Production? Answer: Technology has dramatically changed people's way of life all over the world and the world today has become a true manifestation of a global village. Not only the frequency of international travelling increased manifold but the possibilities of cross-border trading of goods and services have also increased exponentially. These impacts are collectively known as globalization. (Hill, 2009) defines globalisation as a process which enables individuals, organisations and governments from different natins to come across each other and interact in an intergative manner. The end result of such intergation would be an intergated globalised market system which can act as a melting pot of indivual economies of different nations. There are two ways in which globalisation can be envisaged, i.e. with the production perspective and thebmarket perspective. (Hill, 2009) defines the markets' globalisation as melting down and convergence of individually independent market places into an amalgamated market place. Sharing of the sources of production from different geographical locations for levaraging the quality and cost of the goods and services produces is the idea behind the products' globalisation. (Hill, 2009) Many institutions have been formulated to help manage, regulate and police the phenomena of globalization and to promote the...
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...assignment How have changes in technology contributed to the globalization of markets and production? Would the globalization of production and markets have been possible without these technological changes? Answer: Changes in technology have contributed to the globalization of markets and production by bringing the world closer. I believe that improvements of technology in internet, microprocessors, and transportation not only make our lives more convenient, but also enable the growth of globalization of production and markets. For example, improvements in transportation technology have made it easy for companies like Coca-Cola, Levi Strauss, Sony and McDonalds to make their products available worldwide (Charles W.L. Hill, 2013). Changing technology; has also increased the rate of production, allowing goods to be produced and distributed more efficiently. Similarly, if communication does not exist, people around the world will not get the opportunity to connect and do business together. The ability to negotiate around the world has facilitated by improved communications technology. Moreover, the decreasing cost of communication makes coordinating and controlling global environment even more effective and efficient (Charles W.L. Hill, 2013). Most importantly, the impact that Information Technology has created has been tremendous. Companies now market worldwide by creating a website on the Internet. I strongly believe, that the globalization of production and markets may have been...
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...international businesses based in Great Britain? North America? Hong Kong? Answer: The world economy has shifted dramatically over the past 30 years. As late as the 1960s, four stylized facts described the demographics of the global economy. The first was U.S. dominance in the world economy and world trade. The second was U.S. dominance in the world foreign direct investment picture. Related to this, the third fact was the dominance of large, multinational U.S. firms in the international business scene. The fourth was that roughly half of the globe - the centrally planned economies of the Communist world - was off-limits to Western international businesses. All of these demographic facts have changed. Although the U.S. remains the world's dominant economic power, its share of world output and world exports have declined significantly since the 1960s. This trend does not reflect trouble in the U.S. economy, but rather reflects the growing industrialization of developing countries such as China, India, Indonesia, and South Korea. This trend is also reflected in the world foreign direct investment picture. As depicted in Figure 1.2 in the textbook, the share of world output (or the stock of foreign direct investment) generated by developing countries has been on a steady increase since the 1960s, while the share of world output generated by rich industrial countries has been on a steady decline. Shifts in the world economy can also be seen through the shifting power of multinational...
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...[1] "The study of international business is fine if you are going to work in a large multinational enterprise, but it has no relevance for individuals who are going to work in small firms." Evaluate this statement. Comments: Globalization is changing the world economy. Firms, even small ones, can no longer ignore events going on outside their borders because what occurs in one country has implications for the rest of the world. Individuals who believe they can act in isolation by working for a small firm are not being realistic, but rather myopic and insular. Today, thanks to advances in technology, many small firms sell and source internationally very early in their evolution, those that fail to take advantage of international opportunities may not achieve their full potential, and ultimately may fail as competitors that do recognize the importance of international business dominate. In the United States, for example, almost 90 percent of firms that export employ fewer than 100 people. They also account for more than 20 percent of U.S. exports. [2] How have changes in technology contributed towards the globalization of markets and of production? Would the globalization of products and markets have been possible without these technological changes? Comments: Technological change has made globalization a reality. Major advances in communication, information processing, and transportation have brought the world closer together. The development of the microprocessor...
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...Great Britain? North America? Hong Kong? 2. “The study of international business is fine if you are going to work in a large multinational enterprise, but it has no relevance for individuals who are going to work in small firms.” Evaluate this statement. 3. How have changes in technology contributed to the globalization of markets and production? Would the globalization of production and markets have been possible without these technological changes? 4. “Ultimately, the study of international business is no different from the study of domestic business. Thus, there is no point in having a separate course on international business.” Evaluate this statement. 5. How do the Internet and the associated World Wide Web affect international business activity and the globalization of the world economy? 6. If current trends continue, China may be the world's largest economy by 2020. Discuss the possible implications of such a development for (a) the world trading system, (b) the world monetary system, (c) the business strategy of today's European and U.S.-based global corporations, and (d) global commodity prices. 7. Reread the Management Focus on Vizio and answer the following questions: a. Why is the manufacturing of flat-panel TVs migrating to different locations around the world? b. Who benefits from the globalization of the flat-panel display industry? Who are the losers? c. What would happen if the U.S. government required that flat-panel displays sold in the United States...
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...Globalization is not new, though. For thousands of years, people—and, later, corporations—have been buying from and selling to each other in lands at great distances, such as through the famed Silk Road across Central Asia that connected China and Europe during the Middle Ages. Likewise, for centuries, people and corporations have invested in enterprises in other countries. In fact, many of the features of the current wave of globalization are similar to those prevailing before the outbreak of the First World War in 1914. Map of the Silk Road But policy and technological developments of the past few decades have spurred increases in cross-border trade, investment, and migration so large that many observers believe the world has entered a qualitatively new phase in its economic development. Since 1950, for example, the volume of world trade has increased by 20 times, and from just 1997 to 1999 flows of foreign investment nearly doubled, from $468 billion to $827 billion. Distinguishing this current wave of globalization from earlier ones, author Thomas Friedman has said that today globalization is “farther, faster, cheaper, and deeper.” But policy and technological developments of the past few decades have spurred increases in cross-border trade, investment, and migration so large that many observers believe the world has entered a qualitatively new phase in its economic development. Since 1950, for example, the volume of world trade has increased by 20 times, and from...
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...Globalization Learning objectives • Explain why it is important for managers today to have a global perspective. • Explain the three components of globalization • Describe its effects on markets and production • Explain how technology and innovation in transportation have speeded up globalization • Discuss pros and cons of globalization This chapter is dedicated to introducing the student to the emergence of a new and integrated world of business in which the traditional barriers to cross-border trade and investment including distance, time zones, language, differences in national government regulation, culture and business systems recede in significance due to globalization. The discussion of contemporary issues in international business illustrates the unique challenges of international business. A review of macro-economic and political changes that have taken place in the last 30 years highlights the issues that a typical manager must address in a global market. Information technology and technological changes have put global markets within the reach of small firms in remote locations. In spite of all its benefits, globalization is not a panacea. Critics of globalization point out that it has adverse effects on some firms and individuals. The opening case chronicles the meteoric rise of Wal-Mart from its humble Arkansas beginnings in 1962 to a global retailing giant with $218 billion in sales in 2002. The closing...
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...30 years, there has been a shift away from a world in which national economies were relatively self-contained entities, isolated by barriers to cross-border trade and investment, and by national differences in government regulation, culture, and business systems; and moving toward a world where barriers to cross-border trade and investment are declining, material cultures are becoming similar, and national economies are merging into an integrated, interdependent global economic system. As companies from Japan and emerging markets like China play a more vital role in the world economy, the dominance of companies from the United States and Western Europe has diminished. Significant implications for British firms involve looking beyond Europe and America for investment and opportunities. Consumer spending power is growing quickly in developing countries. For North American companies, the same holds true, although the importance of the growing prosperity in Latin America suggests a potentially huge market in “their backyard.” Hong Kong is perceived as the gateway to the immense market of mainland China. Since Hong Kong firms are now less taken for granted, access to China is improving along with the move towards a market economy within China. International businesses based in all three locations are facing new opportunities and threats. 2. "The study of international business is fine if you are going to work in a large multinational enterprise, but it has no relevance for...
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...THE ROLE OF GLOBALIZATION IN THE MODERN ECONOMY GLOBALIZATION DEFINED Over the past several decades, the economies of the world have become increasingly linked, through expanded international trade in services as well as primary and manufactured goods, through portfolio investments such as international loans and purchases of stock, and through direct foreign investment, especially on the part of large multinational corporations. At the same time, foreign aid has increased much less in real terms and has become dwarfed by the now much larger flows of both private capital, and remittances. These linkages have had a marked effect on the developing world. But developing countries are importing and exporting more from each other, as well as from the developed countries, and in some parts of the developing world, especially East Asia but also notably Latin America, investments have poured in from developed countries such as the United States, the United Kingdom, and Japan. Globalization is one of the most frequently used words in discussions of development, trade, and international political economy. As the form of the word implies, globalization is a process by which the economies of the world become more integrated, leading to a global economy and, increasingly, global economic policymaking, for example, through international agencies such as the World Trade Organization (WTO). Globalization also refers to an emerging “global culture,” in which people consume similar goods and...
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...PART-1 1. Concept of globalization: Globalization means the coming together of different societies and economies via cross border flow of ideas, finances, capital, information, technologies, goods and services. The cross border assimilation can be social, economic, cultural, or political. But most of the people fear cultural and social assimilation as they believe this would have a negative impact on the existing culture of their society. Globalization therefore has mostly narrowed down to economic integration and this mainly happens through three channels; flow of finance, trade of goods and services and capital movement. Globalization is a term that includes a wide range of social and economic variations. It encompasses topics like the cultural changes, economics, finance trends, and global market expansion. There are positive and negative effects of globalization - it all comes as a package. Globalization helps in creating new markets and wealth, at the same time it is responsible for extensive suffering, disorder, and unrest. The great financial crisis that just happened is the biggest example of how negative globalization can turn. It clearly reveals the dangers of an unstable, deregulated, global economy. At the same time, this gave rise to important global initiatives, striving towards betterment. Globalization is a factor responsible for both repression and the social boom. What happens when there is a growing integration of economies across the globe? Majorly...
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...Globalization Learning objectives • Explain why it is important for managers today to have a global perspective. • Explain the three components of globalization • Describe its effects on markets and production • Explain how technology and innovation in transportation have speeded up globalization • Discuss pros and cons of globalization This chapter is dedicated to introducing the student to the emergence of a new and integrated world of business in which the traditional barriers to cross-border trade and investment including distance, time zones, language, differences in national government regulation, culture and business systems recede in significance due to globalization. The discussion of contemporary issues in international business illustrates the unique challenges of international business. A review of macro-economic and political changes that have taken place in the last 30 years highlights the issues that a typical manager must address in a global market. Information technology and technological changes have put global markets within the reach of small firms in remote locations. In spite of all its benefits, globalization is not a panacea. Critics of globalization point out that it has adverse effects on some firms and individuals. The opening case chronicles the meteoric rise of Wal-Mart from its humble Arkansas beginnings in 1962 to a global retailing giant with $218 billion in sales in 2002. The...
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...Chapter 2 Globalization of Markets and the Internationalization of the Firm 1) Globalization of production activities and services is a dimension of market globalization. Answer: TRUE 2) Companies strive to drive down prices through economies of scale, by standardizing what they sell. Answer: TRUE 3) Falling trade barriers are facilitated by the WTO. Answer: TRUE 4) Technological advances have helped make internationalization affordable for all sizes of firms. Answer: TRUE 5) The Internet has increased the cost of transmitting voices, data, and images. Answer: FALSE 6) Mobile phones are the most transformative technology in developing economies. Answer: TRUE 7) Today, the cost of transportation, as a proportion of the value of products shipped internationally, has increased dramatically. Answer: FALSE 8) Globalization results in more demanding buyers who shop for the best deals worldwide. Answer: TRUE 9) Which of the following is characteristic of globalization of markets? A) lack of skilled labor B) conservatism C) declining trade barriers D) diminishing gap between the rich and the poor Answer: C Global Operations Report (Scenario) As Vice President of Global Expansion for Pax Telecom, Deva Mikiri is tasked with preparing a comprehensive report on the company's global operations over the past twenty years. Deva assigns three strategists to collaborate on the History portion of the report, which details...
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...NDU Economic Globalization By : Elias Barakat Instructor : Dr Queen Salame Outline : 1- Introduction , Page 3 2- The effects of economic globalization on developing countries , Page 4 3- Advantages and disadvantages of economic globalization , Page 6 4- History of Globalization , Page 9 5 - Factors Contributing to the Rise of Globalisation in the Early 1980s , Page 11 6- Conclusion , Page 14 Index , Page 14 Introduction: Economic globalization is a worldwide phenomenon wherein countries’ economic situations can depend significantly on other countries. Many allied countries would supply resources to each other that the other countries do not have. These resources can cover imported products, technology, and even human labor. Many people have observed that this phenomenon may lead to a “one-world government,” which consists of a centralized government for all nations. The nature of globalization and global economic change has been a subject of immense academic research during the past two decades. It is more a phenomenon in need of explanations than a universal cause of empirically observable outcomes in the so-called globalization theory.1* 1*Check references page The effects of economic globalization on developing countries 1- Increased Standard of Living : Economic globalization gives governments of developing nations access to foreign lending. When these funds are used on infrastructure including roads, health care, education, and social services...
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...layman. The company has managed to permeate the minds of the people with exceeding diligence. Hyundai has embraced many marketing techniques to build its brand image globally. "Creating Happiness" was the tag line of one of its campaigns, which it had undertaken for brand building. This is not just a tag line but the company indeed endeavors to make it happen likewise. This was the tag line it had embraced for one of its campaigns in promoting its electronic goods in India. In addition to cars, Hyundai has also entered the digital arena. Even though, marketing strategies are taken care of by the different personnels appointed by the company stationed at various places, nevertheless, some of the brand building tools are also suggested by the apex management. Hyundai Cars: Set up in the year 1967, Hyundai Motor Co., registered a sale of USD$26.1 billion in the year 2004. There are many countries in which Hyundai vehicles are sold and it is being increasingly felt that price is no longer a measure for the sale of Hyundai cars. In fact the brand image has worked on the minds of the people. In the year 2006, the yoy appreciation value recorded was 17%. It has been listed in cars of Best Global Brands, where it occupies the 84th position. Hyundai's brand value was evaluated at $4.1 billion in the year 2006. The company has managed to bring about brand management in an effective manner by keeping up the quality of the vehicles. The quality has never been compromised...
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...EUR International Business: Cases Case 1: Whirlpool Whirlpool’s Dramatic Turnaround through Internationalization Whirlpool exemplifies how internationalization can rejuvenate declining sales and optimize cost structures. Background Headquartered in Benton Harbor, Michigan, Whirlpool Corporation makes washers, dryers, refrigerators, dishwashers, freezers, and microwave ovens in 13 countries and sells them in 170 others, under brands names such as Whirlpool, Maytag, Magic Chef, Jenn Air, Amana, KitchenAid, Kenmore, Brastemp, and Bauknecht. In 2006, Whirlpool acquired competitor Maytag (horizontal integration) and its brands (Amana, Jenn Air, Magic Chef, and Maytag). Whirlpool generated over $19 billion in 2006 annual sales: 60 percent from North America, 25 percent from Europe, 15 percent from Latin America, and 2 percent from Asia. Operate with 60 manufacturing and technology centers worldwide and 80,000 employees. International Expansion Domestically: (1) The U.S. appliance market matured in the 1990s, and Whirlpool faced low profit margins, intense competition, and more demanding buyers, pressuring management to consider international markets. Internationally: (1) Trade barriers fell, consumer affluence grew, and capitalism flourished. (2) A “global” approach would yield economies of scale in manufacturing, assembly, appliance technology and distribution. (3) Whirlpool sought cost reductions in R&D, manufacturing, and services by locating plants in lower cost locations such...
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