IBUS1101 Lecture Notes - Lecture 2: Anti-Globalization Movement, Deglobalization, Root Mean Square
18 Jul 2018
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Document Summary
Market globalisation refers to the growing economic integration of national economies and the growing interdependence of buyers, producers, suppliers, and governments around the world. Declining trade barriers (protection) and rapid changes in communications, manufacturing, and transportation technologies are enabling rms to internationalise much more rapidly and easily than ever before. Globalisation allows companies to outsource activities to the most favourable locations worldwide. Globalisation has also made it easier for companies to sell their offerings worldwide. Firms expand abroad proactively to increase sales and pro t through new markets, Nd lower cost inputs, or obtain other advantages. Firms may also internationalise reactively because of unfavourable conditions in the home market such as regulation or declining local industry sales. The diagram below presents an organising framework for examining market globalisation. The exhibit makes a distinction among: drivers or causes of globalisation, dimensions (i. e. manifestations or features) of globalisation, rm-level consequences of globalisation, societal consequences of globalisation.
