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  • 1. 1 Introduction to International Business and Managing International Business Organizations. Mamta D. mamta_18_6@yahoo.co.in
  • 2. 2 • “We have nowhere to go except everywhere” • “There is no way we can leave you! We engulf you, we touch all walks of your life”
  • 3. 3
  • 4. 4
  • 5. 5
  • 6. 6 • Globalization in a literal sense is international integration • It is a term used to describe how places and human beings are becoming more intertwined with each other around the world economically, politically, and culturally. What is Globalization??
  • 7. 7 How & When was this process of Globalization started?
  • 8. 8 Eras of Globalization • There have been three eras of globalization. • Globalization 1.0Globalization 1.0 Lasted from 1492 – when Columbus set sail, opening trade between the Old World and the New World- until around 1800. • It shrank the world from a size large to a size medium.
  • 9. 9 • Globalization 1.0 was about countries and muscles. • In Globalization 1.0 the key agent of change, the dynamic force driving the process of global integration was – how much muscle, how much horsepower, wind power, or later, steam power – your country had and how creatively you could deploy it.
  • 10. 10 • In this era, countries and governments (often inspired by religion or imperialism or a combination of both) • Imperialism occurs when a strong nation takes over a weaker nation or region and dominates its economic, political, or cultural life. This type of foreign policy was practiced by European nations and Japan throughout the 1800s and early 1900s
  • 11. 11
  • 12. 12 • In Globalization 1.0 the primary questions were : • Where does my country fit into global competition and opportunities? • How can I go global and collaborate with others through my country?
  • 13. 13 • The second great era • Globalization 2.0, Lasted roughly from 1800 to 2000, interrupted by the Great Depression and World Wars I and II. • This era shrank the world from a size medium to a size small
  • 14. 14 • In Globalization 2.0, the key agent of change, the dynamic force driving global integration, was multinational companies • These multinationals went global for markets and labor, spearheaded first by the expansion of the Dutch and English joint-stock companies and the Industrial Revolution.
  • 15. 15 • In the first half of this era, global integration was powered by falling transportation costs, thanks to the steam engine and the railroad • The second half by falling telecommunication costs – thanks to the diffusion of the telegraph, telephones, the PC, satellites, fiber-optic cable, and the early version of the World Wide Web.
  • 16. 16 • The dynamic forces behind this era of globalization were breaking through in hardware – from steamships and rail roads in the beginning to telephones and mainframe computers toward the end.
  • 17. 17 • The big questions in this era were : • Where does my company fit into the global economy? • How does it take advantage of the opportunities? • How can I go global and collaborate with others through my company?
  • 18. 18 • Around the year 2000 we entered a whole new era : Globalization 3.0 • Globalization 3.0 is shrinking the world from a size small to a size tiny and flattening the playing field at the same time
  • 19. 19 • The dynamic force in Globalization 1.0 was countries globalizing • The dynamic force in Globalization 2.0 was companies globalizing, • The dynamic force in Globalization 3.0 - the thing that gives it its unique character – is the newfound power for individuals to collaborate and compete globally.
  • 20. 20 • Individuals must, and can, now ask, • Where do I fit into the global competition and opportunities of the day • How can I, on my own, collaborate with others globally?
  • 21. 21

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