1. Globalization and International
Linkages
By: Sarah Bravenec and Katie Norman

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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