Submitted by: Submitted by chaox123
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Category: Other Topics
Date Submitted: 12/15/2010 08:00 PM
1) Globalizations
Globalizations is the process by which national economies merge into an interdependent global economic system and shifting towards a more integrated world economy
2) Components of globalizations
Globalizations of markets
* Merging historical distinct and separated national markets into one huge market place
* E.g. MacDonald, Levi’s Jeans
Globalizations of productions
* Tendency among firms to source goods and services from locations around the globe to take advantages of national differences in cost and quality factors of production
* Boeing 777 contains of 132500 major components produced around the world by 545 suppliers
3) Trends towards greater globalizations
Two macro factors
* The decline of barriers to the free flow of goods, service and capital investment
* The technological change – developments in information and communication technology and transportation technology
4) Global business/International business
* Any business transaction involving a cross-border commercial transactions
* Cross-border commercial transactions: exporting, manufacturing overseas, finance, investment, management, transportation, etc
5) Global organizations
* Companies that operate as in the world were a single entity
* Emphasize on global operations
* Use global sourcing of human resources, capital, technology, facilities, resources and raw materials
* Has developed a global corporate culture, strategy, structure and communication process
* Creates a world without walls, made possible by advances in communications and transportation technologies
6) Innovative business strategies
Rapid production introduction
* Bringing new products to the market place in record time to penetrate the marketplace faster than its tough competitors
* E.g. Microsoft software products
Focused market needs
* Customized design, packaging and services
* E.g. Telecommunication products...