This document provides an overview of globalization and international business. It discusses the benefits of international business such as increased profits and employment opportunities. However, it also notes hurdles such as differing laws and regulations between countries. Globalization is defined as the interdependence and interrelation of the world economy. Key factors driving globalization include the fall of trade barriers, advances in telecommunications and transportation technologies, and the rise of the internet. Several global institutions that promote globalization are also discussed, including the WTO, IMF, World Bank, and UN.

1. CHAPTER 1
GLOBALIZATION
Author: Charles w.l.hill

2. International Business
Any level activity that is carried
across border to earn profit..

3. Y to do International Business?
(Benefits)
Increase in Profits
Employment opportunities
Foreign Exchange
Split Risk across different Markets
Improvement in Technology
Taxation
Innovations

4. Cont’d….
Technology
Better utilization of Resources
Political Relations

5. Hurdles in International
Business
Nationalities of Parties
Law & regulations of different
countries
Political conditions
Risk
Differences in Cultures
Competition
Terrorism etc.

6. What is Globalization???
Interdependence and interrelation of
world economy is basically termed
as “Globalization”

7. Factors that had led Globalization:
Fall of Barriers of trade
Telecommunication
Transportation
Internet

8. Globalization Of Markets
• Merging of Historically Distinct National
Markets
• Convergence of Consumer taste and
Preferences
• Example: Starbucks, KFC, Pepsi
Globalization of Production
• Sourcing of Goods around Globe to take
advantage o National Differences in factor of
productions.
• Example: Boeing Jet airliner

9. Global Institutes:
 WTO(WorldTrade Organization)
148 nations as member countries up to May,2005.
 Responsible for facilitation of multinationals
agreements
 Promoted low trade barriers
• IMF (International monetary Fund) & World Bank:
 Came into existence in 1944 by 44 nations
 IMF maintain order in international monetary
system ; world bank promote economic
development

10. Cont’d….
 UN (UnitedNation)
Oct 24, 1945 by 51 countries
Now 191 member nations
Established to preserve peace through
international cooperation & collective security
UN Charter
Establishes Basic principles of international
relations

11. Cont’d….
Charter has laid down 4 purposes of UN
Maintain
International
Peace & Security
Develop friendly
relations among
Nations
Cooperate in
solving
International
problems &
promote respect
for human rights
Harmonizing
Actions of
Nations

12. Drivers of Globalization
 Declining Trade & Investment Barriers
 Role of Technological Change
Microprocessors & Telecommunication
Internet & World Wide Web
Transportation Technology

13. Global Economy of 21st
Century
 Barriers have reduced
 Volume of Trade has increased
 Investment is growing more than Global output
 Privatization, Deregulation, Open Markets etc.
 Globalization is not inevitable
Example: Russia
 Globalization also brings risk with it
Example: Recession

14. Globalization Debate
 Greater Prosperity
 Lower Prices of Goods and Services
 Stimulate Economic Growth
 Employment opportunities
 Raise Income of Consumers
 Globalization has its critics also:
 Anti-Globalization Protest
Globalization, Jobs and Income
Labor Policies and Environment
National Sovereignty
World’s Poor

15. Managing in Global
Marketplace
 Countries are Different
 Range of problems are wider & more Complex
 Government Intervention
 Currency Exchange Rates