Globalization 1
,Learning Objectives
LO1-1: Understand what is meant by
the term globalization.
LO1-2: Recognize the main drivers of
globalization.
LO1-3: Describe the changing nature This chapter introduces the emergence of the
of the global economy. globally integrated business world. Globalization
has reduced the traditional barriers to cross-
border trade and investment (distance, time
zones, language, differences in government
LO1-4: Explain the major arguments regulations, culture, and business systems).
in the debate over the impact of
globalization.
To begin the discussion of contemporary issues
in international business, macroeconomic and
LO1-5: Understand how the process of political changes in the last 50 years are
globalization is creating opportunities reviewed.
and challenges for management
practice.
Information technology and other technological
innovations have put global markets within the
reach of even small firms in remote locations.
Yet, in spite of all its benefits, globalization has a
downside. Critics point out its adverse effects,
including those on developing nations.
The opening case explores Apple’s decision to
outsource production of its iPhone to China.
While this decision has drawn criticism, Apple
defends the strategy noting that suppliers and
subcontractors in China have the ability to
respond quickly to changing market conditions
,giving Apple an advantage in the highly competitive mobile
phone market. The closing case explores GM’s strategy in
China. GM has been serving the Chinese market via a 50/50
joint venture with state-owned SAIC Motors. The joint
venture, in place since 1997, has seen sales rise from just
half a million in 2006 to nearly 4 million in 2018. For GM,
local production offers the opportunity to better understand
the local market and avoid export shipping costs.
,
,Learning Objectives
LO1-1: Understand what is meant by
the term globalization.
LO1-2: Recognize the main drivers of
globalization.
LO1-3: Describe the changing nature This chapter introduces the emergence of the
of the global economy. globally integrated business world. Globalization
has reduced the traditional barriers to cross-
border trade and investment (distance, time
zones, language, differences in government
LO1-4: Explain the major arguments regulations, culture, and business systems).
in the debate over the impact of
globalization.
To begin the discussion of contemporary issues
in international business, macroeconomic and
LO1-5: Understand how the process of political changes in the last 50 years are
globalization is creating opportunities reviewed.
and challenges for management
practice.
Information technology and other technological
innovations have put global markets within the
reach of even small firms in remote locations.
Yet, in spite of all its benefits, globalization has a
downside. Critics point out its adverse effects,
including those on developing nations.
The opening case explores Apple’s decision to
outsource production of its iPhone to China.
While this decision has drawn criticism, Apple
defends the strategy noting that suppliers and
subcontractors in China have the ability to
respond quickly to changing market conditions
,giving Apple an advantage in the highly competitive mobile
phone market. The closing case explores GM’s strategy in
China. GM has been serving the Chinese market via a 50/50
joint venture with state-owned SAIC Motors. The joint
venture, in place since 1997, has seen sales rise from just
half a million in 2006 to nearly 4 million in 2018. For GM,
local production offers the opportunity to better understand
the local market and avoid export shipping costs.
,
