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International Bsinrsss

In: Business and Management

Submitted By fahr92
Words 10538
Pages 43
International Business
Linked to globalization
Globalization
1. What is it ?
It is a process where the world is moving away from independent countries to interconnected counties

2. Status ( where we are + measurements)
Wave of globalization after WOII * 50 – 60 domination of the US (“free market wave”) The trade rules are set by the US * Now domination China, Asia US domination is gone, different countries dominate the world
The demographics of the world economy has changed

How do you measure globalization? * University of zurich * http://globalization.kof.ethz.ch/

The KOF Index of Globalization measures the three main dimensions of globalization: 1. Economic globalization * Actual flows (37%) * Trade (percentage of GDP) * Foreign direct investement, flows (percentage of GDP) * Portfolio investement (percentage of GDP) * Income payments of foreign nationals (percentage of GDP) * Restrictions * Hidden import barriers * Mean tariff rate * Taxes on international trade (percentage of current revenue) 2. Social (39%) * Data on personal contact * Data on information flows 3. political. (25%) * Embassieses

3. Types of globalization 1. Globalization of products 2. Globalization of markets

Active vs passive globalization
Globalization can also be passive. Companies that do not want to globalize could also be affected by globalization. Companies might lose everything if they do not globalize

4. What are the drivers of globalization * Technological: Telecom, transport,… * Barriers to trade have reduced: The decline of barriers for the free flow of goods
Doha Round 5. Positive and negative Positive * Globalization stimulates economic growth raises the incoms of...

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