International Business
Globalization and International Business
The Concept of Globalization – putting everything into one village
* The process of integration and convergence of economic, financial, cultural and political systems across the world. * Globalization – refers to the integration and interaction between different people and nations. * Globalization is the process of international integration arising from the interchange of world views, products, ideas and other aspects of culture.
Globalization – A holistic approach
1. Economic Globalization: the increasing integration of national economic systems through the growth in international trade, investments and capital flow. 2. Financial Globalization: the liberalization of capital movements and deregulations, especially of financial services that led to a sport in cross boarder capital flows. 3. Cultural Globalization: convergence of cultures across the world E.g. Dress codes, ways of living. 4. Political Globalization: the convergence of political systems and processes around the world.
Dimensions of Economic Globalization {what has changed}
* Globalization of production – the increased mobility of the factors of production especially the movement of capital that has changed countries’ traditional specialization roles. (process is made shorter and cheaper) * Globalization of Markers – technological strides in communication, transport and travel have created new consumer segments. The global markets have become easily accessible. (producing standardized products that are advanced, functional reliable and low priced).
* Globalization of competition – it has intensified in such a way that businesses are forced to form mergers or enter into new strategic alliances, competing with new players around the globe.
* Globalization of technology – it has advanced rapidly and thus creating shorter cycles for production of goods and services. The running of businesses
The Concept of Globalization – putting everything into one village
* The process of integration and convergence of economic, financial, cultural and political systems across the world. * Globalization – refers to the integration and interaction between different people and nations. * Globalization is the process of international integration arising from the interchange of world views, products, ideas and other aspects of culture.
Globalization – A holistic approach
1. Economic Globalization: the increasing integration of national economic systems through the growth in international trade, investments and capital flow. 2. Financial Globalization: the liberalization of capital movements and deregulations, especially of financial services that led to a sport in cross boarder capital flows. 3. Cultural Globalization: convergence of cultures across the world E.g. Dress codes, ways of living. 4. Political Globalization: the convergence of political systems and processes around the world.
Dimensions of Economic Globalization {what has changed}
* Globalization of production – the increased mobility of the factors of production especially the movement of capital that has changed countries’ traditional specialization roles. (process is made shorter and cheaper) * Globalization of Markers – technological strides in communication, transport and travel have created new consumer segments. The global markets have become easily accessible. (producing standardized products that are advanced, functional reliable and low priced).
* Globalization of competition – it has intensified in such a way that businesses are forced to form mergers or enter into new strategic alliances, competing with new players around the globe.
* Globalization of technology – it has advanced rapidly and thus creating shorter cycles for production of goods and services. The running of businesses