Meeting_2

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Meeting_2

  1. 1. Globalization and International Linkages By: Sarah Bravenec and Katie Norman
  2. 2. Article – Emerging Giants• Some emerging countries: Brazil, China, India, Russia, Egypt, and South America• What are some advantages and disadvantages companies have by using these countries to make their companies more international?
  3. 3. International Management• International management? – the process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political, and cultural environment• Reshape business models• What is a MNC? Give an example of a MNC company.
  4. 4. Globalization and Internationalization• Internationalization (process of a business crossing from national to cultural borders) VS. globalization (vision of creating one world unit, a single market entity• Offshoring and outsouring – Who benefits from these two processes of globalization?
  5. 5. Global and Regional Integration• World Trade Organization (WTO)• North American Free Trade Agreement (NAFTA)• CAFTA – DR – U.S. central American free trade agreement – Dominican republic• Free Trade Agreement of the Americas (FTAA)• European Union – 27 member states• Regional Trade agreements have slowed down negotiations between countries in the WTO
  6. 6. The Shifting Balance of Economic Power in the Global Economy• In a report, Goldman Sachs argued that the global potential of Brazil, Russia, India, and China is such that they may becoming among the 4 most dominant economies by the year 2050• Why do you think that these countries have the potential to become the most dominant economies?
  7. 7. Economic Systems of the World and Regional Connections• Global economies• Market economy – when private enterprises own property and monitor the production, distribution of goods, and services while the state simply supports competition and efficient practices• Command economy – the government, has explicit control over the price and supply of a good or service• Mixed economy – a combination of a market and command economy
  8. 8. North America• Free-market-based economy• Canada is the US’s largest trading partner• Mexico has built a very strong maquiladora (factories) industry• What industries does North America have major dominant positions in?
  9. 9. South America• Accumulated heavy foreign debt, and severe inflation• Argentina has one of the strongest economies overall – abundant natural resources – literate population – export-oriented agricultural sector – diversified industrial base• Positive dev. in SA is the growth of intercountry trade, spurred on by the progress toward free- market policies
  10. 10. Europe• EU – Ultimate objective of the EU is to eliminate all trade barriers among member countries (like b/w states in the US) – Single currency and a regional central bank• Central and Eastern Europe – Russia: dismantling of Russian price controls, and privatization of ownership – Poland – economy has done relatively well, first of communist-bloc countries to adopt more privatized ownership
  11. 11. Asia• Japan – Japanese cultural values – Ministry of International Trade and Industry (MITI) – Use of keiretsus (a large group of vertically integrated companies to end users)• China – Major risk, tense trade feelings, because of the two systems of communism and capitalism• Emerging markets – South Korea: chaebols – Hong Kong – headquarters for some of the most successful multinational operations in Asia – Singapore: ideal model of urban life, leader and financial center of Southeast Asia – Taiwan – progressed from labor intensive economy to one that is dominated by more technology
  12. 12. Other Emerging Countries• Less Developed Countries (LDC) – What characterizes an LDC?• India – Recent trend of of locating software and other higher- value-added services• Middle East and Central Asia – Many are considered LDC’s, but because of oil they are considered economically rich• Africa – Considerable natural resources, but remains poor and underdeveloped – developing nations in Africa lack the institutions, infrastructure, and economic capacity to take full advantage of globalization

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