Globalization in International Business Management | Brief Introduction and Discussion for Exercise

Globalization in International Business Management | Brief Introduction and Discussion for Exercise

What is globalization 

Globalization refers to the shift toward a more integrated and interdependent world economy.

What kinds of drivers in globalization 

Declining Trade and Investment Barriers and Role of Technological Change

How to manage global marketplace 

Managing an international business differs from managing a purely domestic business because an international business is any firm that engages in international trade or investment. Some consideration such as: 

• Need to vary practices from country to country

• More complex decisions required

• Need to understand the international trading and investment system, currency exchange

Open Questions in Globalization 

Describe the shifts in the world economy over the last 30 years. What are the implications of these shifts for international businesses based in Great Britain? North America? Hong Kong?

Over the last 30 years, there has been a shift away in world economy in which countries are comply their economic production by their self respectively. A life with barrier to engage with other countries due to limited ability to connect with others. However, a decrease barrier has started, growing international trade and investment, integrating national economies and lead to the interdependency in global economic system. 

Great Britain 

The rising economic power from Asian to expanse global market became threat for United States and United Kingdom. As companies from Japan and emerging market such as China play a vital role in global economy, it leads to diminishing the dominion of United States and United Kingdom as superior market before. The consumer power is growing quickly in developing countries instead of United Kingdom. Therefore, Great Britain firms face the challenge of attracting Asian firm that interested in Great Britain as a launch pad for the European market. 

North America 

The North American’s firm felt as well as Great Britain, however the firm tries to expand their market in America Latin as another big market opportunity in America. 

Hongkong 

At the first, Hongkong’s firm has enjoyed the access free market to the China due to losing its independence. Nevertheless, its freedom is less accepted due to access restriction to China market. It might be China has built its market become global giant market. 

In summary all three countries facing new threat and opportunity due to the globalization. 

How does the Internet affect international business activity and the globalization of the world economy?

The internet provides connectivity for all the users. It can diminish the distance around off the world. The internet has been major - force facilitating international trade in services. Thus, it will help for international business activity that reduce the boarders and limitation of it. 

What do you think about this statement: “The study of international business is fine if you are going to work in a large multinational enterprise, but it has no relevance for individuals who are going to work in small firms.”

The statement is not true for all, we cannot avoid the globalization today and it becomes naturally in business. Therefore, nether we are work in multinational enterprise or not we need to learn about international business. 

Another reason, the small firms need to learn how the market trend today event your company does not have ability to expand in other country. But, the knowledge from International business such as core competency, resources based on view, or international trading can be applied for business strategy, thus the small firm can enjoyed the source from learning international business. 

How have changes in technology contributed toward the globalization of markets and production? Would the globalization of markets and production have been possible without these technological changes?

• The distribution of production to geographically separate locations become more economical. 
• Technological innovation has facilitated the globalization of markets. Low cost global communication network (World Wide Web) are helping to create electronic global marketplace. 
• It is possible, as we know that some American and Europe voyager try to explore Asian Continent by their ship. That were the beginning of the international trade (event at the time they were barter instead of trader) around the world. However, without technology the globalization tends to slow and expensive, thus technologies drives to the efficient on market and product globalization. 

What do you think about this statement: “Ultimately, the study of international business is no different from the study of domestic business. Thus, there is no point in having a separate course on international business.”

I disagree about this statement. I think the global market has the relation with domestic business. For me the multinational company comes from domestic company who want to expand its market to the global. Thus, both studies have the relation each other. 

Thank you guys, hope it will help you to clear understand about globalization, please let in comment if you have questions.