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International Business 7e by Charles W.L. Hill,McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.,Chapter 1 Globalization,课程目标:开阔视野 架构思想 提高能力,What Is Globalization?,The world is moving away from self-contained national economies toward an interdependent, integrated global economic system Globalization refers to the shift toward a more integrated and interdependent world economyGlobalization has two facets: 1) the globalization of markets 2) the globalization of production,The Globalization Of Markets,The globalization of markets refers to the merging of historically distinct and separate national markets into one huge global marketplace In many industries, it is no longer meaningful to talk about the “German market” or the “American market” Instead, there is only the global market,The Globalization Of Markets,Falling trade barriers make it easier to sell internationally The tastes and preferences of consumers are converging on some global norm Firms help create the global market by offering the same basic products worldwide,Classroom Performance System,The shift toward a more integrated and interdependent world economy is referred to asa) economic integration b) economic interdependency c) globalization d) internationalization,The Globalization Of Production,The globalization of production refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production like land, labor, and capitalCompanies compete more effectively by lowering their overall cost structure or improving the quality or functionality of their product offering,Classroom Performance System,The merging of historically distinct and separate national markets into one huge global marketplace is known asa) global market facilitation b) cross-border trade c) supranational market integration d) the globalization of markets,Classroom Performance System,Firms that are involved in international business tend to bea) large b) small c) medium-sized d) large, small, and medium-sized,The Emergence Of Global Institutions,Institutions are needed to: help manage, regulate, and police the global marketplace promote the establishment of multinational treaties to govern the global business system,The Emergence Of Global Institutions,Institutions created over the past half century include: the General Agreement on Tariffs and Trade (GATT) the World Trade Organization (WTO) the International Monetary Fund (IMF) the World Bank the United Nations (UN),The Emergence Of Global Institutions,The World Trade Organization (like its predecessor GATT) is primarily responsible for policing the world trading system and making sure that nation-states adhere to the rules laid down in trade treaties signed by WTO members In 2007, the 150 nations that accounted for 97% of world trade were WTO members The WTO promotes lower barriers to trade and investment,What WTO do ?,Trade negotiations Implementation and monitoring Dispute settlement Building trade capacity,The Emergence Of Global Institutions,The International Monetary Fund and the World Bank were created in 1944 The IMF was established to maintain order in the international monetary system The World Bank was established to promote economic development,The Emergence Of Global Institutions,The United Nations was established in 1945 to: maintain international peace and security develop friendly relations among nations cooperate in solving international problems and in promoting respect for human rights be a center for harmonizing the actions of nations,Classroom Performance System,Which organization is responsible for policing the world trading system?a) the International Monetary Fund b) the United Nations c) the World Trade Organization d) the World Bank,Classroom Performance System,Which is not a factor of production?a) trade b) land c) capital d) energy,Drivers Of Globalization,Two macro factors underlie the trend toward greater globalization: the decline in barriers to the free flow of goods, services, and capital that has occurred since the end of World War II technological change,Declining Trade And Investment Barriers,International trade occurs when a firm exports goods or services to consumers in another country Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country After World War II, advanced countries made a commitment to lower barriers to trade and investment Since 1950, average tariffs have fallen significantly and are now at about 4% Countries have also been opening markets to FDI,Classroom Performance System,The sourcing of good and services from around the world to take advantage of national differences in the cost and quality of factors of production is calleda) economies of scale b) the globalization of production c) global integration d) global sourcing,Declining Trade And Investment Barriers,
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