International Business

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Chapter 1: Globalisation

Globalisation
by
Ooi Soon Beng
Wild, J.J. & Wild, K.L., (2012). International
Business: The Challenges of Globalization
(Global Edition), 6th Edition, Pearson
Education Limited, U.K

1. Describe the process of globalization and how it
affects markets and production.

2. Identify the two forces causing globalization to
increase.
3. Summarize the evidence for each main argument in
the globalization debate.
4. Identify the types of companies that participate in
international business.
5. Myths that keep small firms from going global.
Macroeconomics

Economic
boundaries are
disappearing and
those remaining
will continue to
diminish.

World is Your Oyster
Macroeconomics

Sit, relax
and watch
the world
pass by?

Macroeconomics

Global
trends that
shape the
business
world
today!

1) Leading emerging countries will
continue to drive global growth.
2) Emerging enterprises will become a
disruptive force in the global
competitive landscape.
3) Rising population and prosperity
drive new consumer growth and
urbanization.
4) Emerging markets will become the
new battleground.

5) Global influence grows.
Macroeconomics

As of 2012, the five BRICS countries represent almost 3 billion people (40% of world population), with a combined nominal GDP of US$13.7 trillion
(25% of global
GDP), and an
estimated US$4
trillion in combined
foreign reserves
(45% of global
foreign reserves).

Macroeconomics

India's Tata
Motors'
US$2,900
Nano, priced at
less than half
the cost of any
other car on
the market
worldwide.

Macroeconomics

The cost is
about US$4,000.
The Chery QQ is
a city car
produced by the
Chinese
manufacturer
Chery
Automobile
since 2003.
Macroeconomics

Proton:
Emerging
Global
Enterprise?

Macroeconomics

Johnson Electric (China) is the world’s leading manufacturer of small electric motors.
Lenovo (China), which bought IBM's PC business.
BYD (China) is the world's largest maker of nickel-cadmium
batteries.

Pearl River (China) is the world's biggest manufacturer of pianos. Huawei Technologies (China) is the largest telecommunications equipment maker in the world, after having overtaken Ericsson. Techtronic Industries Ltd (HK) is a global leader in the

manufacture and sale of home improvement products.
Macroeconomics

Tata Motors (India) bought over two grand old names of
British car makers, Jaguar and Land Rover.
Ranbaxy Pharmaceuticals (India) is among the top ten genericpharmaceutical players in the world. Infosys (India) is a global provider of business consulting and IT services. Forbes ranks Infosys among the world's most

innovative companies .
Embraco (Brazil) is the world’s leader in making compressors, with a 25% market share.
Macroeconomics

Embraer (Brazil) has surpassed Canada’s Bombardier as the world’s leading maker of regional jets.
Sadia and Perdigão (Brazil), two food companies, derived half of its combined sales of around US$6 billion from exports.
Cemex (Mexico) is one of the largest cement producers in the world. Four fifth of its revenue come from outside Mexico.
Lukoil (Russia), a Russian emerging energy giant, operates in 25 other countries.

Macroeconomics

China's urban
population has
reached 51.27
percent of the
total in 2011, thus
exceeding the
rural population
for the first time
in history. The
ratio is expected
to reach 70
percent by 2030.
Macroeconomics

In 2010, the total
consumption in the
Chinese mainland
luxury market reached
USD10.7 billion,
excluding private jets,
yachts or luxury cars,
making the country
the world's second
largest consumer of
luxury goods, after
Japan.
Macroeconomics

Macroeconomics

Ancient Wisdom, Relevant Today
All warfare is based on
deception.
Know your enemy and
know yourself and you
can fight a hundred
battles without
disaster.

Know the weather and
the field – your victory...
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