Globalization to Nationalization Customs War/ Tariff War Developed countries supporting nationalism Brexit Donald Trump’s policies

1. Pranab Kishor (MBA 2nd)
Current Issues
in
International Marketing

2. De-globalization
• Globalization to Nationalization
• Driven by Policies
• Customs War/ Tariff War
• Developed countries supporting nationalism
• Brexit
• Donald Trump’s policies
• FDI plummeted by $700 billion in 7 last years
• United Nations Conference of Trade and Development - 2014
• Not the first time
• Last one lasted for 50 years

3. Political Unrest
• Political risks can impact the value of a company, make it harder to operate
normally and make expansion more difficult.
• Macroeconomic Issues - High Interest Rates
• Social Issues - Civil Unrest
• Government Actions - Confiscating A Company's Assets
• Narendra Modi fifth biggest geo-political risk of 2020 – (Eurasia Group)
• Intensified communal and sectarian instability, as well as foreign policy and economic
setbacks
• A weakened economy will in turn feed further economic nationalism and protectionism.
• Burberry has seen a "double digit" percentage decline in sales in Hong Kong.
• Burberry could take a $123 million hit on sales because of the Hong Kong protests
• Airline Cathay Pacific said the civil unrest had "been exceptionally challenging,
severely impacting demand and operations of the business
Higher operating
costs, factory
shutdowns and
operating losses.

6. Ethics
• Working Condition and Cheap Labor
• Sweatshop in Asia, South America and Central America
• Working class in US and Europe has very minimal increase in wages in last 20 years (Forbes)
• Costs Ethical Businesses Cost Advantage
• 46 Countries, 600 contract factories , 800,000 workers – Nike is unable to manage wage and
working conditions.
• Companies ignoring Environmental, Social, Governance (ESG) criteria and SDGs
(WEF 2020)
• Driverless Cars
• Unemployment
• Facebook
• Fake News
• Environmental Issues

9. Environment/Natural Disasters
• Climate change
• Extreme Weather Conditions
• Risky Agriculture Investment
• 3/5 of Electric/Hybrid Cars by 2030 (JP Morgan)
• No Major innovation in Battery
• No immediate benefit from environmentally concerned initiatives.
• Coronavirus
• Starbucks, KFC, Pizza Hut and McDonald's - Closed shops and suspended delivery services in
the city of Wuhan and Hubei Province.
• Disney has closed its parks in Shanghai and Hong Kong
• The stocks of LVMH, Kering and Cartier watch maker Richemont all fell more than 5% last
week.
• As the scale of the outbreak has become apparent, companies have begun to adjust their
forecasting - Reuters
REUTERS/David McNew/File Photo

11. Cyber-Crime
• The most pressing risks facing the world have shifted from economic threats
to the risks posed by cyber wars and technological dystopia. – WEF’s 2020
study of global risks
• Ownership of Internet in not defined and so the Jurisdiction
• “The biggest problem in cyber crime is attribution; you cannot trace back.
The second is international agreements: other countries do not agree to
share information“ - National Cyber Security Coordinator Lt Gen Rajesh
Pant
• Recent Major Cyber Attcks
• WannaCry - Ransomware - 2017.
• NotPetya – Ransomware – 2016
• Ethereum – Blockchain currency heist - $39.4 million – 2018

12. Cyber-Crime – Implication for Businesses
• Banks, stock markets, multi nationals all are connected.
• Higher Integration = Higher Chance of Exploitation of System
• The Cost of Protection
• Lost Sales
• Online Vigilantes
• PayPal and MasterCard
• Changing Methods of Doing Business
• Many companies have stopped storing customers' financial and personal information

13. State-controlled Internet
• Concept of Internet Sovereignty
• Opposite to the Silicon Valley concept of the internet as an open forum.
• Massive interference with news flows.
• Google China and Great Firewall.
• US government’s initiatives to dismantle ‘net neutrality’ in 2017
• Supported by some Big Corporation.
www.google.cn

14. Conclusion
• Entering International Market opens new doors of opportunities for
businesses as well it makes them vulnerable to new and unknown threats
• To Protect Business from such elements strategies of diversification should
be adopted
• Ethical Supply Chain Should be Developed
• Business Should be led by Value, like Patagonia
• Domestic Market should be taken care of
• Sustainability should be taken care of

15. References
• Raje, A. P. (2017, February 17). We are in a deglobalization period: Business historian Geoffrey G. Jones. Retrieved from h
ttps://www.livemint.com/Companies/tKamdGDvvyCt8Smn39TQMK/We-are-in-a-deglobalization-period-Business-historian-Ge
off.html
• Rapoza, K. (2016, November 23). Trump, China, And The 'Deglobalization' Trade. Retrieved from https://www.forbes.com/si
tes/kenrapoza/2016/11/23/trump-china-and-the-deglobalization-trade/#633daa964cd0
• World Economic Forum Annual Meeting Davos 2020. (n.d.). Retrieved from https://www.weforum.org/events/world-econo
mic-forum-annual-meeting-2020
• Fashion Transparency Index 2019. (n.d.). Retrieved from https://issuu.com/fashionrevolution/docs/fashion_transparency_ind
ex_2019?e=25766662/69342298
• Saphir, A. (2020, January 22). Warren calls on big U.S. banks for steps on climate risk. Retrieved from https://in.reuters.co
m/article/us-usa-election-warren-idINKBN1ZL1VQ
• Roche, E. (2020, January 8). Narendra Modi fifth biggest geo-political risk of 2020: Eurasia Group report. Retrieved from
https://www.livemint.com/news/india/narendra-modi-fifth-biggest-geo-political-risk-of-2020-eurasia-group-report-115784956
00766.html
• Goodwin, B. (2020, January 31). Davos: The clock is ticking on climate change but cyber crime and emerging technologi
es add to risks. Retrieved from https://www.computerweekly.com/news/252477684/Davos-The-clock-is-ticking-on-climate-c
hange-but-cyber-crime-and-emerging-technologies-add-to-risks
• Fruhlinger, J. (2018, November 26). What is a cyber attack? Recent examples show disturbing trends. Retrieved from http
s://www.csoonline.com/article/3237324/what-is-a-cyber-attack-recent-examples-show-disturbing-trends.html
• Hornby, L. (2017, December 3). China defends state control over internet at technology forum. Retrieved from https://ww
w.ft.com/content/dad122c8-d7e8-11e7-a039-c64b1c09b482
• Pham, S. (2020, January 27). How the coronavirus is already hurting global business. Retrieved from https://edition.cnn.co
m/2020/01/27/business/coronavirus-business-closures/index.html `

16. THANK YOU