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1 Topic8 GlobalizationandBusiness 2 Timearrangement 2periodsAims Tolearntheinfluenceofglobalizationoverbusinesstodayandthedefinitionofmulti nationalcorporation TomastersomeusefulphrasesandexpressionsconcerningbusinessactivityinEnglish 3 Keywordsandphrases globalizationintegrationmultinationalcompaniesjoint developmentlivingstandardsbalanceofpaymentsprotectionistpolicytariffrestrictionsquotarestrictions hostcountrycomponent零部件shipment装运logistics后勤 工作 统筹安排capitalstockderegulation解除管制 撤销管理sweatshop 4 Definitionofglobalization Globalizationisthegrowingintegrationoftheworld seconomy Globalizationcanalsobedefinedastheprocessofincreasingsocialandculturalinter connectedness politicalinterdependence andeconomic financialandmarketintegrationsThreeimportantaspectsofglobalization 1 Theincreasingimportanceofinternationaltrade2 Moreandmoremultinationalcompanies 3 Moreandmorebusinessesthinkingabouttheirstrategy 5 Majorfactorsaffectingglobalization Technologicalchange especiallyincommunicationeasytransferofdata speeduptheglobalizationThereductionoftransportationcosts Thisisnotjustaircraft butalsoships Thedevelopmentofcontainerizationinthe1950swasamajorbreakthroughingoodshandling andtherehavebeencontinuingimprovementstoshippingtechnologysincethen ImprovethedevelopingenvironmentforglobalizationConsumertastechange willingtobuyforeignornewproducts Thearrivalofglobalsatellitetelevision forexample hasexposedconsumerstoglobaladvertising Consumersaremoreawareofwhatisavailableinothercountries andarekeentogiveitatry 6 Thegrowthofnewmarket especiallythe Tigers ofSEAsiaegThailand Therehasbeenhighgrowthofincomesinthesecountries whichmakeslargeconsumermarketswithmoneytospend Indonesia forexample whilststillnotparticularlyrich hassome350mynconsumers BothIndiaandChinaareverypoorcountries buttherearesmallmiddleclasseswhoaredoingverywellandhavemoneytospend Althoughthesegroupsaresmallinthecontextofthecountry theoverallpopulationsaresohuge over1byn thatasmallmiddleclassaddsuptomanymillionsofconsumers AndthisinturnincreasethetrendofglobalizationCompetition forcebusinessestoseekopportunities developaglobalstrategyDeregulation Fromthe1980sonwards startingintheUK manyrulesandregulationsinbusinesswereremoved especiallyrulesregardingforeignownership Privatisationalsotookplace andlargeareasofbusinesswerenowopentopurchaseand ortake over Thisallowedbusinessesinonecountrytobuythoseinanother Forexample manyUKutilities oncegovernmentbusinesses areownedbyFrenchandUSbusinesses 7 Removalofcapitalexchangecontrols Themovementofmoneyfromonecountrytoanotherwasalsocontrolled andthesecontrolswereliftedoverthesameperiod Thisallowedbusinessestomovemoneyfromonecountrytoanotherinasearchforbetterbusinessreturns ifinvestmentinone sowncountrylookedunattractive abusinesscouldbuybusinessesinanothercountry Duringthe1990shugesumsofmoney mainlyfromtheUS havecomeintotheUKeconomy FreeTrade Manybarrierstotradehavebeenremoved SomeofthishasbeendonebyregionalgroupingsofcountriessuchastheEU MostofithasbeendonebytheWTO Thismakestradecheaperandthereforemoreattractivetobusiness Mobilityinemployment 8 Effectsofglobalization Industrial emergenceofworldwideproductionmarketsandbroaderaccesstoarangeofforeignproductsforconsumersandcompanies Particularlymovementofmaterialandgoodsbetweenandwithinnationalboundaries Financial emergenceofworldwidefinancialmarketsandbetteraccesstoexternalfinancingforborrowers Astheseworldwidestructuresgrewmorequicklythananytransnationalregulatoryregime theinstabilityoftheglobalfinancialinfrastructuredramaticallyincreased asevidencedbythefinancialcrisesoflate2008 ReligiousThespreadandincreasedinterrelationsofvariousreligiousgroups ideas andpracticesandtheirideasofthemeaningsandvaluesofparticularspaces 9 Economic realizationofaglobalcommonmarket basedonthefreedomofexchangeofgoodsandcapital Theinterconnectednessofthesemarkets howevermeantthataneconomiccollapseinanyonegivencountrycouldnotbecontained Political someuse globalization tomeanthecreationofaworldgovernmentwhichregulatestherelationshipsamonggovernmentsandguaranteestherightsarisingfromsocialandeconomicglobalization Politically theUnitedStateshasenjoyedapositionofpoweramongtheworldpowers inpartbecauseofitsstrongandwealthyeconomy WiththeinfluenceofglobalizationandwiththehelpofTheUnitedStates owneconomy thePeople sRepublicofChinahasexperiencedsometremendousgrowthwithinthepastdecade IfChinacontinuestogrowattherateprojectedbythetrends thenitisverylikelythatinthenexttwentyyears therewillbeamajorreallocationofpoweramongtheworldleaders Chinawillhaveenoughwealth industry andtechnologytorivaltheUnitedStatesforthepositionofleadingworldpower Social developmentofthesystemofnon governmentalorganisationsasmainagentsofglobalpublicpolicy includinghumanitarianaidanddevelopmentalefforts 10 Informational increaseininformationflowsbetweengeographicallyremotelocations Arguablythisisatechnologicalchangewiththeadventoffibreopticcommunications satellites andincreasedavailabilityoftelephoneandInternet Language themostpopularlanguageisMandarin 845millionspeakers followedbySpanish 329millionspeakers andEnglish 328millionspeakers About35 oftheworld smail telexes andcablesareinEnglish Approximately40 oftheworld sradioprogramsareinEnglish About50 ofallInternettrafficusesEnglish Competition Survivalinthenewglobalbusinessmarketcallsforimprovedproductivityandincreasedcompetition Duetothemarketbecomingworldwide companiesinvariousindustrieshavetoupgradetheirproductsandusetechnologyskillfullyinordertofaceincreasedcompetition Cultural growthofcross culturalcontacts adventofnewcategoriesofconsciousnessandidentitieswhichembodiesculturaldiffusion thedesiretoincreaseone sstandardoflivingandenjoyforeignproductsandideas adoptnewtechnologyandpractices andparticipateina worldculture Somebemoantheresultingconsumerismandlossoflanguages AlsoseeTransformationofculture 11 Ecological theadventofglobalenvironmentalchallengesthatmightbesolvedwithinternationalcooperation suchasclimatechange cross boundarywaterandairpollution over fishingoftheocean andthespreadofinvasivespecies Sincemanyfactoriesarebuiltindevelopingcountrieswithlessenvironmentalregulation globalismandfreetrademayincreasepollution Ontheotherhand economicdevelopmenthistoricallyrequireda dirty industrialstage anditisarguedthatdevelopingcountriesshouldnot viaregulation beprohibitedfromincreasingtheirstandardofliving TechnicalDevelopmentofaGlobalInformationSystem globaltelecommunicationsinfrastructureandgreatertransborderdataflow usingsuchtechnologiesastheInternet communicationsatellites submarinefiberopticcable andwirelesstelephonesIncreaseinthenumberofstandardsappliedglobally e g copyrightlaws patentsandworldtradeagreements Legal EthicalThecreationoftheinternationalcriminalcourtandinternationaljusticemovements Crimeimportationandraisingawarenessofglobalcrime fightingeffortsandcooperation TheemergenceofGlobaladministrativelaw 12 Fivemajoreffectsofglobalizationonbusiness IncreasedcompetitionMeetconsumerneedsinmoreeffectivewaysAbletoenjoyeconomiesofscale reduceproductioncostsAffectingthechoiceoflocation laborcosts tariffrestrictionsofexportsIncreasingmergersorjoint developmentopportunitiesintheworldmarket morepartners 13 Negativeeffects Globalizationopensupanotherwiseresource poorcountrytotheinternationalmarket Thepoorcountryhaslittlematerialorphysicalproductharvestedorminedfromitsownsoil largecorporationstakeadvantageofthe exportpoverty ofsuchanation Inmanypoorernationsglobalizationisactuallytheresultoftheforeignbusinessesinvestinginthecountrytotakeadvantageofthelowerwagerate eventhoughinvesting byincreasingtheCapitalStockofthecountry increasestheirwagerate useofsweatshopsbymanufacturers Suchassportsshoemanufacturers Nike Therearefactoriessetupinthepoorcountrieswhereemployeesagreetoworkforlowwages Theniflabourlawsalterinthosecountriesandstricterrulesgovernthemanufacturingprocessthefactoriesarecloseddownandrelocatedtoothernationswithmoreconservative laissez faireeconomicpolicies 14 Multinationalcompaniesandtheirinfluences Definitionofamultinationalcompany anorganizationwhichownsorcontrolsproductionorservicesfacilitiesoutsidethecountryinwhichitisbased Commonlyitoperatesinmorethan4countries Theydonotjustexport
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