2. Goals and Layout of Lesson Find how globalization has affected different regions, and the costs and benefits of globalization Find why Russia and Eastern Europe are of interest to international managers Find why Asia holds such an interest for international management Find why MNC’s would be interested in South America, India, Middle East, Central Asia, and Africa and less developed emerging countries and if MNC’s would be better off focusing efforts on more industrialized regions
3. Globalization vs Internationalization Globalization: the process of integration among countries around the world with a vision of a single market entity: Social Economic Political Technological Cultural Internationalization: the process of a business crossing national and cultural borders.
4. Terms International Management: the process of applying management techniques to multiple national environments and adapting these practices to different cultural, political and economical environments MNC (Multinational Corporation): A firm that operates in more than one country, has sales internationally and has managers and owners of many different nationalities Difference between globalization and internationalization. Difference between outsourcing and offshoring.
5. Quiz Question 1 The US, Canada and Mexico make up the _____, which has removed all barriers to trade between these countries and created a huge North American Market. North American Free Trade Agreement General Agreement on Tariffs and Trade North American Trade Union North American Common Market
6. Quiz Question 2 The following are trade agreements or alliances among countries except: ASEAN NAFTA NATO EU
7. Quiz Question 3 The following statements are true about the US and Canada except: Canada is the largest trading partner of the US Both countries are participants in NAFTA The legal and business environments of the two countries are very different In recent years, Canadian firms have begun investing heavily in the US
8. Quiz Question 4 According to the book, which of the following South American countries is described as an economic success story? Chile Venezuela Brazil Paraguay
9. Quiz Question 5 Chaebols are large, family held conglomerates in: China South Korea Japan Thailand
10. Quiz Question 6 There is a growing trend toward expanding horizons and doing business with nations thousands of miles away. True False WHY?
11. Quiz Question 7 During the 1980’s, China’s average real economic growth was about 10 percent. True False WHY?
12. Quiz Question 8 A small population and a high GDP typically characterize an LDC. True False WHY?
13. Quiz Question 9 Finnish, French, Italian and German companies outsource IT work the Central and Eastern European contractors because they are usually cheaper than Indian contractors. True False WHY?
14. Discussion How has globalization affected different world regions? What are some of the benefits and costs of globalization for different sectors of society (companies, workers, communities)?
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16. Pros and Cons of Globalization Benefits of Globalization: wealth, jobs, technology, lower prices. Criticisms of Globalization: off-shoring of business service jobs to lower-wage countries; growing trade deficits; slow wage growth; environmental and social impacts.
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18. Trends in International Investments and Trade International Investments: 80% from developed countries Foreign direct investment (FDI) Growing at healthy rate Outpacing domestic growth in most countries International Trade: Over ½ of world trade accounted for by United States, European Union and Japan Increased substantially over last two decades
19. Goals and Layout of Lesson Find how globalization has affected different regions, and the costs and benefits of globalization Find why Russia and Eastern Europe are of interest to international managers Find why Asia holds such an interest for international management Find why MNC’s would be interested in South America, India, Middle East, Central Asia, and Africa and less developed emerging countries and if MNC’s would be better off focusing efforts on more industrialized regions
20. Russia and Eastern Europe Dismantling of price controls Privatization Direct investments are helping GDP increase and inflation decrease Russia so large that it has potential for future Hungary has cheap, highly skilled labor Keys are to maintain social order, establish rule of law and get value-added factories running Eastern Europe branch of Coca-Cola expands at twice the rate of its other foreign operations
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23. Goals and Layout of Lesson Find how globalization has affected different regions, and the costs and benefits of globalization Find why Russia and Eastern Europe are of interest to international managers Find why Asia holds such an interest for international management Find why MNC’s would be interested in South America, India, Middle East, Central Asia, and Africa and less developed emerging countries and if MNC’s would be better off focusing efforts on more industrialized regions
24. Asia Has continued growth potential Large underdeveloped markets Income threshold will rise creating more demand for goods 3 of 4 BRIC countries are located in Asia Predicted to be among 4 most dominate economies by 2050 China will surpass US in output Keiretsus in Japan and Chaebols in Korea (Pg 26)
25. Goals and Layout of Lesson Find how globalization has affected different regions, and the costs and benefits of globalization Find why Russia and Eastern Europe are of interest to international managers Find why Asia holds such an interest for international management Find why MNC’s would be interested in South America, India, Middle East, Central Asia, and Africa and less developed emerging countries and if MNC’s would be better off focusing efforts on more industrialized regions
26. South America and Middle East Growth in international investment flows Oil reserves Growth in population leads to growth of economy Privatization which leads to offshoring Trade agreements Some countries have promising growth development
27. Here Comes the Competition Is Europe likely to be a good area for direct investment during the years ahead? Why is so much foreign money being invested in US manufacturing? Based on your conclusions, what advice would be in order to the conglomerate? If the conglomerate currently does not do business in Europe, what types of problems is it likely to face?
28. Where in the world is Carmen San Diego’s company based?
