Textbook Notes (363,141)
Canada (158,218)
Management (22)
MGMT 3P98 (4)
Chapter 1

MGMT 3P98 Chapter 1: MGMT 3P98 - Chapter 1 Notes

4 Pages
Unlock Document

Brock University
Tansu Barker

Introduction: National economies are merging together into an interdependent global economic system, a process called globalization Daily volumes in forgein exchange markets averaged about 5 trillion dollars Best time for businesses despite the economic slowdown, increase in revenue through worldwide sales and reduce cost through cheaper labour in different countries After communisum ended in 1980’s, free markets became the new thing Overview of nature and process of globalization: What is Globalization? 1. Globalization of Markets Merging distinct and separate national markets into one global marketplace Companies like apple creating a standardize products to facillate a global marketplace Differencesdifferent marketing strategies, operating policies, and product features to best match the conditions of the new country the company is about to enter into Global markets is not for the consumers products, but for industrial goods and services Some large firms compete against each other in global markets, such as Coke vs. Pepsi, once one company makes a move to gain a competitive advantage, the second large company (the rival) will make nearly the same move, for example entering the same country as their rival, to prevent letting one company gain an advantage Consistency across the markets 2. Globalization of Production Sourcing goods and services from around the world to take advantage of national differences in the cost of production Still Informal, formal barriers to trading between certain countries Substantial impediments still make it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the world 3. Globalization of Consumers The Emergence of Global Markets • Institutions need to formed to help regulate, manage, and police the global marketplace and promote multinational treaties to govern global business systems • General Agreement on Tariffs and Trade (GATT), its successor • World Trade Organizations, responsible for policing the world trading system and making the159 countries adhere to the rules laid down by the WT • WTO goals were lowering barriers to cross-border trade and investment • The International Monetary Funds & The World Bank, goal is to maintain order in the international monetary system, & The World Bank promotes economic development • The World Bank focuses on making low interest rates loans to cash strapped government in poor nations that wish to undertake infrastructure investments • The IMF seen as the lender at last resort to nations-states whose economies are in turmoil & with their currency losing value against other countries, they develop policies and plans on how the loans should be repaid • The United Nations, 193 countries committed to preserving peace through international corporations and collective security, the UN has four main purposes: 1. International peace and security 2. Develop friendly relationships between nations 3. Solving international problems 4. Promoting respect for human rights Drivers of Globalization: Two Marco factors that underlie the trend towards greater globalization 1. Declining Trade and Investment Barriers • Between 20-30’s many nations erected formidable barriers to international trade and foreign investment • Many types of barriers involved high tariffs on import manufactures goods, aim was to protect domestics industries from foreign competitions • Countries began progressively raising trade barriers against each other, a factor that contributed to the great depression • After WW2, countries started moving towards a free flow of goods and services between nations, this goal was enshrined by the General Agreement on Tariffs and Trade (GATT), dropping tariffs rates down to 4% • Reducing trade barriers, but also removing restrictions to foreign direct investment 2. The Role of Technological Change • Lowering trade barriers made globalizatio
More Less

Related notes for MGMT 3P98

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.