Management

The Challenges of Globalization

1. Define globalization: Refers to the increasing movement of goods, services, and capital across national borders. Is considered a process – an ongoing series of interrelated events

2. Major drivers of globalization: Technological innovation: Easier to communicate with employees, partners, and suppliers all over the globe in real time.

Transportation systems:

Improvements enable the fast and cheap movement of goods and services from one place to another

The presence of major corporations:

Bigger, well-capitalized, firms are better equipped to conduct business across national boundaries than smaller firms

Social and political reforms:

Rise of Pacific Rim growth economies, collapse of communism in Central and Eastern Europe have opened new regions to world trade

3. Major international financial and trade institutions that have shaped the globalization process: World Bank (WB), International Monetary Fund (IMF), and World Trade Organization (WTO) are the three institutions that set the rules by which international commerce is transacted

4. Benefits and costs of globalization:

5. The challenges of doing businesses in diverse settings: Diversity and complexity of systems that transnational corporations face creates challenges. If a company does business in a nation that does not grant women equal rights, should that company hire and promote women at work, even if it violates local laws and customs? Should a company enter into a business venture with a government-owned enterprise if that government has a reputation for violating its citizens’ human rights?

6. The collaboration of the business, government, and civil sectors in addressing global social issues as illustrated in the conflict diamond: Collaborative partnerships across all 3 sectors can draw on unique capabilities of each, as well as overcome particular weaknesses

Business-Government Relations

1. How business and government interact with each other...