1. Global Business Environment
Unit 1Global Business Environment
Structure
1. Introduction
2. Meaning of Globalisation
1.3Driving Forces of Globalisation
1.4Dimensions of Globalisation
1.5Stages of Globalisation
1.6Introduction to Theories of International Trade 1.6.1 Absolute Advantage Theory 1.6.2 Comparative Cost Advantage Theory by David Ricardo
1.6.3 Factor Endowment Theory (HeckscherâOhlin Thesis)
1.7 Trading Environment of International Trade 1.7.1 Tariff and Nonâtariff Barriers 1.7.2 Trade Blocs â Regional Economic Integration 1.7.3 Raising of
New Economies
1.8Self Assessment Questions
1.9Answers
1.10Case Studies
1.1 Introduction
Globalization describes an ongoing process by which regional economies, societies, and cultures...show more content...
â Globalization helps to think entire world as single market. Establishing manufacturing and distribution facilities in any part of the world based on the
feasibility and viability rather than national consideration. Globalization makes product planning and development based on market consideration of
the entire world.Sourcing of factors of production and inputs like raw materials, machinery, finance, technology, human resources, managerial skills
from the entire globe.
Advantages of Globalisation:
1. Free Flow of Capital â Globalization helps free flow of capital from one country to another country. â Globalization increases capital flow from
surplus countries to the needy countries, which in turn increase the global investment.
2. Free Flow of Technologyâ Globalization helps in the flow of technology from advanced countries to the developing countries. This helps the
2. developing countries to implement new technology.
3. Increase in Industrialization â Free flow of capital along with the technology enables the developing countries to boost industrialization in their
countries. This ultimately increases global industrialization.
4. Spread up of Production Facilities Throughout the Globe â Globalization of production, leads to spread up of manufacturing facilities in all the
global countries depending upon the
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3. Chapter 3 Managing in a Global Environment Essay
Chapter 3â Managing in a Global Environment Notes * Today's companies and managers operate in a borderless world that provides both risks and
opportunities * Globalizationâ Refers to the extent to which trade and investments, information, ideas, and political cooperation flow between countries
* The most globalized countries according to one ranking are Belgium, Austria, the Netherlands, Switzerland, and Swden * Managers can move their
companies into the international arena on a variety of levels, and organizations can be thought of a passing through four distinct stages as they become
increasingly global. 1. The four stages are Domestic, International, Multinational, and Global * Two major alternatives for...show more content...
* The basic management functions are the same in either a domestic or an international subsidiary, but managers will experience greater difficulties and
risk when performing these function internationally. * International managementâ means the management of business operations conducted in more
than one country * When operating on an international basis, it is important for managers to give considerable thought to economic, legalâpolitical,
and sociocultural factors * Countries vary widely in terms of economic development and are classified as either develop countries or less developed
countries (LDCs) * Infrastructureâ refers to a country's physical facilities such as highways, utilities, and airport that support economic activities *
The United States recently fell out of first place on ranking of global competitiveness * Managers who want to expand operations into another
country evaluate the availability of raw materials and the market demand for their company's products and services * As recent financial crises in the
United States and Europe show, countries are economically interconnected, and financials problems in one area of the world can rapidly spread
around the globe. * International business managers can expect their companies to be affected periodically by economic problems that cross
geographical boundaries. * Complicated legal and political forces can create huge risk for international managers and
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4. Global Pollution Essay
Pollution is a growing issue in the world and is the major cause that contributes to many environmental problems. What is usually classified as
pollution, what kind of pollution is present in the world, and what the people are doing to deal with this pollution issue in the world. There are several
problems with world pollution that are associated with global warming and include waste disposal, water pollution, and air pollution. These things are
usually caused by people on the planet who produce waste. This has been a growing complication and is (omit) now been taken as a serious issue.
Solutions to these situations have been considered to keep the Earth and all the things in it.
One of the situations that are involved with world...show more content...
"The problem of exposure to hazardous materials remains, except that it is spread over a wider area" (Newton).
Illegal waste disposal is also another reason that contributes to world pollution.
It may be defined as the improper disposal of waste at any site other than a regularly licensed landfill or other facility. Usually this kind of disposal
is done because people are unaware of the law and are unwilling to take the time or refuse to pay the costs for properly disposing materials, or are in
possession of toxic materials that may cause legal problems. (Watts) "Illegal waste dumping ranges from being a simple nuisance to a serious health
hazard and often occur in isolated or desolate places. In the United States, illegal waste dumping is often thought of as a local problem; however, the
motives and types of people who engage in itâincluding multinational corporations, criminal syndicates, and individualsâpersist throughout the world"
(Watts).
The dangers of disposing of waste illegally are often unknown by some corporations or even ignored. By not getting rid of waste properly it
encourages more dumping, so a small problem may rapidly become a major hazard. Another danger is the health risks posed by the type of material
being discarded. Dangerous materials commonly dumped illegally include such medical wastes as used syringes
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5. Global Environmental Problems
Global environmental problems have taken a turn for the worst in recent years. For water pollution, carbon emissions, and hurricanes have been at
their highest peak in 2017. These issues have only begun to get worse due to power plants, burning of fossil fuels, and several other environmentally
hazardous factories. In just 2017, six major hurricanes have occurred due to a combination of climate change, warming of the oceans, air and water
pollution, overpopulation, and several other environmental polluters. Countries, including the United States of America, are drastically being
affected by these events, some more than others. Global environmental problems have increased over the years and will continue to grow worse if
actions are not taken to change this pattern. If the population continues to grow exponentially, like it is now, Homo sapiens will drastically feel the
effects of global environmental changes including a lack of water, polluted waters and air, and a drastically lower life expectancy. According to the
article, "Food" by World Wildlife 7.3 billion people live on thisEarth and all together we consume 1.6 times what Earth's natural resources can offer us
(1). With this statistic alone, it is prevalent that if we continue to consume more than what Earth can offer us, we will run out of natural resources.
Running out of natural resources such as food will drastically affect the Homo sapiens race as well as all life forms on Earth. Environmental storms will
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6. The Importance Of The Global Environment
Sooner rather than later, the human population must declare that the Earth has fundamental rights, to live without the global environment rapidly
deteriorating and we need to link together to solve this issue instead of separately. Our dear planet Earth is fundamental for our survival. However,
humans are only a fraction of the Earth's population. The Earth does not need us to continue on, but we need the Earth. Our Mother Earth has been
around for billions of years before humans were ever created. Humans have only been around for a couple thousand years. Yet, how is it that humans
have made the quality of the global environment one of the most predominate issues that face international politics every single day? Robert Redford's
words are as true today as when he spoke them, especially with the recent news over the Paris Climate Agreement.
I recently interviewed several Indiana residents over their view on the global environment, paying particular attention international politics. When asked
"Do you believe the issues pertaining to the global environment should be focused on more in international politics?", one resident's response stood out
in particular to me. Emily Tauber, a student at Purdue University double majoring in Wildlife and Forestry stated, "I do. The environment is something
that affects all of us, regardless of what country we live in. The entire world should be focused on the health of the global environment because the state
of the environment is a huge
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7. Some people say global warming is caused by human activity, others say global warming doesn't even exist. Some people claim that the climate is
changing for the worse. They believe that humans are the primary cause of these changes, especially the increase in temperature, caused by the burning
of fossil fuels. They believe that the temperature changes are causing glaciers to melt. They claim that the melting of ice masses leads to a higher sea
level and worsening conditions for Arctic animals, as well as other negative effects on the environment. Others do not agree with this. They say that the
climate is not changing at all and that if it is, it is certainly not due to human behavior. The term "global warming" refers to an abnormal, increasing
average temperature of the planet. The average temperature has fluctuated constantly throughout the whole time the Earth has existed, but recently the
climate has changed in ways it has not done earlier, as well as more rapidly than it ever has before. The natural reasons for the climate to change are
still occurring, but with an addition of some thought to be caused by human activities. The primary cause behind the increasing temperature is
according to NASA large amount of greenhouse gases being released into the air when fossil fuels are being burnt. The higher temperatures are said to
cause for example melting glaciers and increased coastal erosion. The melting of ice results in negative changes to the ecosystem of the affected
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8. Global Environmental Issues Of The World
There are more than 7 billion people on Earth and counting presently, and roughly one in eight of us does not have enough to eat. The question "how
many people the Earth can contain and sustain" is a longâstanding one that becomes more intense as the world 's populationâand our use of natural
resourcesâkeeps booming(1). It should be noted that there are 7 continents (Asia, Africa, South America, North America, Europe, Australia and
Antarctica) and 196 countries without including subânations and unoccupied islands in the world. This is not shocking to people as the world
dynamics cannot be completely studied as population trends change from time to time due periodic occurrences. Population debates like this are why,
in 2011, National Geographic published a series called "7 Billion" on world population, its trends, implications, and future. After years of examining
global environmental issues such as climate change, energy, food supply, and freshwater, we thought the time was ripe for a deep discussion of people
and how we are related to all these other issuesâissues that are getting increased attention today, amid the new population projections(1). Recent
researches show that the world population took billions of years to reach 7 billion and between 200 years rapidly increased 5 percent and increased to
7.4 billion(2).(2) In a famous 1798 essay, the Reverend Thomas Malthus proposed that human population would grow more rapidly than our ability to
grow food, and that
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9. Global Trends in the Environment Essay
The environment of planet Earth is being harmed and the causes of environmental degradation are mostly man made. Natural resources are being
exploited to provide energy, food, and technology for an everâgrowing global population. In the process, the globe is warming at an unprecedented rate,
water and air are being polluted, and forests are being destroyed; however, awareness and education are encouraging the search for environmental first
aid. The climate change occurring now, which affects every continent and ocean, has both human and natural causes. Developing land to support
human activities, harvesting forests, and burning fossil fuels are human contributions to the problem; while volcanic activity, intensity of the Sun,
...show more content...
Normally, natural processes and rain would clean the air, but thepollution is so great that natural processes can no longer keep air quality at an
acceptable level. Air pollution can have significant health consequences including lung cancer, emphysema, and heart disease. Earth's clean water
supply is provided by a cycle of evaporation and rain, but the population explosion created such huge amounts of garbage and industrial waste
being dumped into lakes and oceans that the natural cleaning process can not keep up, much like natural air cleaning. Organic waste is also a
contributing factor in water pollution. In small amounts, waterborne bacteria break down organic waste but breaking down large quantities of waste
uses up the oxygen in the water causing the death of fish and other organisms. Water pollutants such as mercury, arsenic, and pesticides can be
passed to humans through the food chain (Coleman and Kerbo, 2009). Currently, about 30 percent of the world's land area is covered by forests, but
every year parcels the size of Panama are lost. At the current rate of deforestation, in one hundred years the rainforests will completely disappear. The
major reason for deforestation is to provide land for agricultural use. Other reasons are to provide wood, material for paper products, to accommodate
urban sprawl, and to build roads. Forests
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10. Managing in the Global Environment
Managing in the Global Environment Contents Executive Summary 3 Environmental Background 3 Tradable Emissions Permits 6 Conclusion 9
Works Cited 10 Executive Summary If capitalism is to meet the challenges that lie ahead in the twenty first century then it must quickly adapt to
meet the challenges associated with the trend of global warming. The level of progress that has been achieved in regards to modeling how the planets
natural operate work has reached new levels of understanding and is requiring that more drastic action be taken. This analysis first examines some of
the issues related to the environment that is making the need for regulatory systems more salient. Then an overview of the tradable emission permit
market mechanism will be provided in terms of its strengths and limitations. Environmental Background The atmosphere and many other
environmental topics have been studied rigorously by scientists for many decades. The level of progress that has been achieved in regards to
modeling how the planets natural operate work has reached new levels of understanding. Although there are still many facets that are still under
investigation, science has offered a fairly clear picture of how these systems function. This was no easy feat and there is a great deal of sophistication
in modeling complex systems such as the water cycle, the carbon cycle, and land area use. In fact the field has developed to such maturity that
scientists can predict with some
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11. The Impact Of Globalization On The Environment
It is widely accepted today that human influence since the advent of the industrial revolution has rapidly increased the negative changes in the Earth 's
environment.1 In the modern era, the processes and effects of the forces of globalisation can be seen to be exacerbating the problem of environmental
decline exponentially. For the purposes of this essay, globalisation can be defined as "the increased interconnectedness and interdependance of peoples
and countries", involving "...the opening of borders to increasingly fast flows of goods, services, finance, people and ideas across international borders;
and the changes in institutional and policy regimes at the international and national levels that facilitate or promote such flows".2 As shall be shown,
the effects on the environment caused by these processes affect all inhabitants of the planet, superseding the jurisdiction of national sovereignty and
necessitating the intervention of supranational organisations such as the UN in order to mitigate their consequences.
The global environment on which we all rely can be considered part of the global commons, defined as "resource domains or areas that lie outside of
the political reach of any one nation State".3 Consequently, environmental problems frequently transcend both national borders and the capacity of the
nation state to contend with them.4 Therefore threats to the environment can be understood in terms of Ulrich Beck 's conception of 'risk societies ',
wherein
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12. Climate change has emerged as one of the most substantial issues facing the international community. In the past two decades numerous multilateral
negotiations have taken place within the United Nations to determine which countries should take the most responsibility for climate change
mitigation. Developed countries from the Global North assert that all countries should bear the same responsibility to reduce emissions and combat
climate change. In contrast, the Global South expresses that mitigation should take an equitable approach, distributing responsibility based on factors
such as standard of living, and previous emissions. The development of the Global North relied upon the exploitation of the environment to achieve its
current standard of living, creating the problem of climate change over decades of greenhouse gas emissions. An examination of historical carbon
emissions, climate justice, and transnational corporations in the Global South will prove that imposing climate change mitigation on the Global South
is unjust, and poses a threat to the standard of living in developing countries. There is a vast inequality between the production of carbon emissions
within the Global North and Global South. In the past 150 years, approximately 75% of energy related carbon emissions were produced in developed
countries (Perkins 2008:42â47). It is important to realize that only leaves 25% of energy based carbon emissions to be produced by the entire
developing world
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13. The present state of the environment is being thwarted to the forefront as a matter of grave importance. Increased talk about Climate change, Global
Warming and even the increase in presence and strength of hurricanes evident with the passing of Hurricane Matthew and Hurricane Nicole, has shed
light on the impending doom. While the world is becoming more and more aware of the environmental decay, they are torn as to the cause and the
subsequent solution to the problem at hand. Litfin and Wapner highlight the issue from a legal stance, Magdoff and Foster evaluate the problem from
an economic point of view while Weston opines that it is purely a problem of "stuff". As a result in the difference in belief of the cause of the
imminent state of the environment, they all put forward distinct solutions. Despite the diversity in their approach, all authors are unified that the current
approach ineffective and insufficient to correct the gross misconduct and abuse done to the environment. They are argue that any sufficient solution
while be a world inclusive, cooperative effort.
Karen Litfin and Paul Wapner puts forward a stateâbased approach to the problem of the environment. Litfins' Localism and Wapners' The State and
Environmental Challenges looks at the system of Localism, Globalism and how the two hinder the environment, the economy and the creative minds
of individuals. They critique the existing subâ and supraâ state not just for their inefficiencies and ineffectiveness
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14. The impacts of increased greenhouse gas admission are evident through the rising global temperatures, causing extreme natural disasters and expanding
sea levels. Anthropogenic climate change refers to the production of greenhouse gases emitted into the earth's atmosphere as a result of human
expansion and activity. According to research conducted by The National Aeronautics and Space Administration, Goddard Institute for Space Studies
(NASA, 2016) the average global temperature of the Earth has risen 0.87 degrees Celsius from 1880 to 2016, the highest temperature rise recorded to
date, as a result of heightened greenhouse gas admissions. It is essential to identify the causes of anthropogenic climate change and recognize the
significant negative impact it is having on the global environment and the population.
The increased release of carbon dioxide (CO2) through human activity is a major contributing factor to global warming. The human race contributes to
the issue of climate change through the burning of fossil fuels and deforestation. These activities release vast amounts of CO2 into the atmosphere,
which have caused the earth's temperature to rise (Society, 2016). This process is known as the 'Greenhouse gas effect', in which heat from the earth is
trapped in the atmosphere by gases, such as CO2, causing the surface of the earth to warm. (Environment.gov.au, 2016). One of the main ways humans
emit fossil fuels into the atmosphere is through industrial operations.
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15. How effectively do Canadian businesses and government engage together to promote a shared vision and agenda in the global business environment?
Do Canadians strike an effective balance between private sector pursuit of global business and public sector support and enablement?
A:
Canadian businesses and governments have been constantly working on increasing their global market, by enforcing more supportive programs and
effective policies. Funding Canadian organizations to enter the international market. The government has announced various support programs with the
intentions to improve support such as EDC helping canadian companies sell beyond Canada's borders and BDC which support small and mediumâsized
businesses in all industries and...show more content...
Which could take several days to receive. Thankfully there is a new program called Trade Projects and you can apply for a credit in just ten minutes,
and the man was able to do it and get his credit for his shipment then later was able to receive his money from the gouvernement. A downfall i've found
with the CanExport program is that it could take up to 20 business days to get reimbursed and some people have said it's a long time because
sometimes they really need to get the funds but it takes too long and they have come late on payments few times.
Question #3
What does a review of the current press reveal about the attitudes of Canadians in terms of global business and international trade?
A:
Canada has established a clear goal towards helping businesses have longâterm relationships & growth internationally and to save money. Mainly
focusing on negotiating better rules/policies that will work alongside local manufacturing and exporting organizations in Canada and around the world.
Canada has become willing to aim their business intentions towards working with the WTO and other countries, in efforts to overcome their global
presence issues. The "Free Trade Agreement" helps Canada's exporter and manufacturer gain a competitive advantage globally (with Europe, Latin
America and other countries) by exposing them to new customers and investment opportunities (resulting in greater sales numbers). Constant focus on
building a
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16. Global Warming is due to the greenhouse effect. The greenhouse effect is a naturally occurring process that aids in heating the Earth's surface and
atmosphere. It results from the fact that certain atmospheric gases, such as carbon dioxide, water vapor, and methane, are able to change the energy
balance of the planet by being able to absorb longwave radiation from the Earth's surface. Without the greenhouse effect, life on this planet would
probably not exist as the average temperature of the Earth would be a chilly â18 degrees Celsius, rather than the present 15 degrees Celsius.
As energy from the sun passes through the atmosphere a number of things take place. A portion of the energy (26 %...show more content...
The now warmer atmospheric greenhouse gas molecules begin radiating longwave energy in all directions. Over 90 % of this emission of longwave
energy is directed back to the Earth's surface where it once again is absorbed by the surface. The heating of the ground by the longwave radiation
causes the ground surface to once again radiate repeating the cycle described above, again and again, until no more longwave is available for absorption.
The amount of heat energy added to the atmosphere by the greenhouse effect is controlled by the concentration of greenhouse gases in the Earth's
atmosphere. All of the major greenhouse gases have increased in concentration since the beginning of the industrial revolution (about 1700 A.D.). As a
result of these higher concentrations, scientists predict that the greenhouse effect will be enhanced and the Earth's climate will become warmer.
Predicting the amount of warming is accomplished by computer modeling. Computer models suggest that a doubling of the concentration of the main
greenhouse gas, carbon dioxide, may raise the average global temperature between 1 and 3 degrees Celsius. However, the numeric equations of
computer models do not accurately simulate the effects of a number of possible negative feedbacks. For example, many of the models cannot properly
simulated the negative effects that increased cloud cover would have on
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17. Global warming
Name:
Institution:
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Date:
Global warming
The main environmental problem facing the world today is global warming. Many scientists believe that production of carbon dioxide and other
greenhouse gases has a heating effect on the atmosphere, and this could be very dangerous for human life. This essay will examine the problem of
global warming and suggest some ways of solving the problem.
Numerous issues could come about because of global warming. One of the problems is the rising of the ocean level. This results to flooding in low
lying beachfront territories and urban areas, for example, Egypt, the Netherlands, and Bangladesh. An alternate issue brought on by global warming is
changes in weather patterns; they are no longer easy to predict. Numerous regions of the world are encountering expanded typhoons, surges, and other
strange climate designs. A third issue connected to global warming is the impact on water creatures such as Fish.
There are a few things that can be done to tackle the issue of global warming furthermore decreasing its far reaching impacts. One arrangement involves
reducing the excessive production of carbon dioxide. This is possible by changing from oil, coal and gas to renewable energy likewise alluded to as
practicing environmental awareness. An alternate conceivable arrangement is planting more trees. Trees retain carbon dioxide and produce oxygen,
which is not a green house gas. A third arrangement is to utilize less
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18. The globalization of industries can either benefit or harm the industry. It can benefit the industries by increasing their revenue or profit, establishing
their product and operation in a new market outside their home country, lowering production cost, and creating jobs for the citizens in the host country
which will impact the economy dramatically. However, globalization can harm an industry if government laws and regulations prevent them from
entering the host country if they feel the industry will affect the wellâbeing of the host country, if there are laws against charging low wages below the
host country standard, if import and export is low where the industry will not market their product successfully, if the citizens within the host...show
more content...
The agreement will benefit the Europe because the European Commission was in desperate need of this kind of agreement since Ireland EU
presidency and Britain's Gâ8 presidency will have election soon. The agreement will benefit the United States because President Obama did not have
the authority to freely promote trade without Congress approval. However, trade is the main area where the Republicans, Democrats, Congress, and the
President all share similar interest to implement a trade agreement. The agreement between the U.S. and Europe focused on two areas: it should first
looked at marketâaccess obstacles when it comes to tariffs, services, investments, and government procurements. The agreement hopes to remove tariff
dilemmas on products like transport equipment and chemicals that would dramatically shape the economic influence of the EUâUS trade. Second, it
should try to overcome the obstacles in order to trade due to domestic regulations acting as barriers that prevent trade and add cost to goods and services
traded among countries. These barriers prevents countries from trading within the cosmetics, chemicals, biotechnologies, medical and measuring
sectors, and the aviation industry (Mildner, StormyâAnnika; Schmucker, Claudia Feb. 2013; Wall Street Journal New York, N.Y. Publisher: Dow Jones
& Company Inc.). The Energy/Electricity Industry The United Kingdom hopes
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19. Global Environment,
In a global environment, religious practice frequently affects business practices within organizations. Religion impacts business and social interactions
from meetings to greetings, holidays and community events and is an inherent factor of cultural values.
A culture's belief systems are invaluable tools for encoding and reinforcing key value orientations within a given group or community, thereby lending
it cohesiveness in outlook and perspective to the everyday challenges of life. Awareness of a culture's religious practices and values play a major role
in managing, negotiating or working with others from a different culture.
It is essential to keep religious preferences and practices in mind when conducting business, either outside...show more content...
She should, however, be advised to dress very conservatively. Furthermore, it is a good idea that she be introduced to her business counterparts by a
man of high rank in her own organization and that he be very clear about her power and rank.
Of the world's main religions, it is Islam in which concerns over a woman's place in business is most apparent. However, it is important to remember
that gender affects other religious environments in a manner that is admittedly less apparent, but also perhaps more subversive. For example, while one
will find many women in all sectors and hierarchical levels of business in a Jewish environment, Jewish women are traditionally aligned most
importantly with motherhood and a domestic role.
In Asia, the religious influences of Confucianism, Shintoism and Taoism reinforce the traditional viewpoint that women are expected to put all of their
efforts into being a wife and mother once married. In countries as disparate as China and Japan, where woman are increasingly joining the business
ranks, it is still difficult to hold more senior roles in companies where resistance to their leadership still persists for traditional â often religious and/or
cultural â reasons. In Japan, for example, many young women leave the workforce before they achieve any sort of seniority. If and when they later
return to the workforce, they generally occupy lower positions than before marriage. This is largely due to the mother's inability to socialize with
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20. By 2030, the urban population will reach 5 billion â 60 % of the world's population.It is clear that the development of urban areas holds the key to
many of the challenges we face in our interactions with the environment. Climate change has become one of the most challenging global environmental
issues facing humanity.. Urban households, industries and infrastructures are key sources of greenhouse gases. Urban areas concentrate populations,
economic activities and built environments, thus increasing their risk from floods, heat waves, and other climate and weather hazards that climate
change is expected to aggravate. Many of our urban centres are in the very areas (e.g. coasts) that will make them more vulnerable to adverse climate
change events. But beyond the obvious risks and vulnerabilities that climate change will bring to our urban areas, these same urban centres will, by
necessity, play a pivotal role in our mitigation and adaptation efforts as well. Urban centres are hubs of development, sources of innovations and policy
responses to reduce the emissions of heat trapping gases and adapt to the impacts of climate change. It is this combination, within urban areas, of
increased vulnerabilities along with increased opportunities that can incubate important synergies and resources for creating innovative adaptation and
mitigation strategies. (UNâHabitat. 2006).
Urbanizationis, in statistical terms, an increasing proportion of a population living in settlements defined as
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