Essay on global context

Submitted By Kangning-Zhang
Words: 835
Pages: 4
Open Document
ADMS1000(section J)--------- The global context

1. The definition of globalization involves: the integration of world economies the integration of world markets a way to expand the degree and form of cross-border transactions between people, assets and goods and services growth in direct foreign investment a shift towards economic interdependence to create one world economy or economic system
2. the importance of globalization
Removal of trade barriers benefits all countries
Domestic countries benefit by exporting goods (grows economy in order to buy imported goods)
Foreign countries benefit by exporting goods (grows economy in order to buy imported goods)
3. The factors

Pull Factor
Obtain needed resources
Achieve sales growth
Push Factor
To compete with competition
A shift towards democracy
A reduction in trade barriers
An improvement in technology
4. Forms of global business include: establishing subsidiaries exporting and importing outsourcing licensing and franchising direct investment in foreign operations joint ventures and strategic alliances mergers and acquisitions
5. The Multinational
Benefits
Economic development
e.g. creates employment; provides financial support & global economic development
Brings management expertise
Introduces new technology
& relevant training
Encourages international trade
Unites cultures & nations; brings countries closer together; fosters global cooperation
Threats
nationality of the organization is unclear no allegiance to a particular country or location (e.g. Nestle, Coca Cola, McDonalds, Nortel) financial, technological, human…capital are easily transferred between countries.
Mobile profits (back to parent company) ownership & management are international.
Difficult to control and hold accountable firms follow the profits!!
Power held in home country
e.g. R & D investments (decision-making centralized) may do some unethical things in another countries.
6. International trade

The Logic of Trade: encourages nations to specialize in goods/services in which they are most efficient and trade with other countries for goods/services not produced domestically. - Comparative Advantage (David Ricardo)
Mercantilism (1500-1800): encourages trade surpluses where exports of goods or services exceeds imports.
Colonial powers (Britain, France, Spain, Netherlands) conquered countries to gain access to raw materials and markets for finished products
Trade Protectionism: protects domestic economies through import restrictions.
Tariffs – tax placed on goods entering a country
Quotas – limits the amount of imports
Subsidies to domestic industries / firms

What is the problem with mercantilism and trade protectionism?
Trade retaliation(harmful)
Increased costs to consumers
Limits competitiveness of domestic firms
Negative impact of tariffs
Impact on exporting country:
Lower production, job losses, economic decline…
Impact on importing country:
Less competition for domestic firms, rising sales, prices, employment, spending, government revenues…
Increased costs to consumers, less spending on other industries, economic decline, costs of imposing + collecting tariffs, possible costs of retaliation and trade wars…
7. PROMOTING INTERNATIONAL TRADE
GATT (1948) [General Agreement on Tariffs and Trade]– 100 countries agreed to reduce tariff levels.
WTO (1995) – took over from GATT, to manage world trade agreements.
IMF – provides short term aid to developing countries.[International Monetary Fund: an international organization that works to balance and manage the world's economy and to help countries with weak economies to develop]
World Bank – seeks to provide long-term loans for development.
8. Regional Economic Integration - Trading Blocs
1. Free Trade Area – removing subsidies & quotas for member countries but autonomy in selecting trade agreements with non-members. e.g. NAFTA, APEC
2. Customs Union – FTA but less freedom about interacting with non-members i.e. common policy e.g. Mercosur
3.
Show More

Related Documents: Essay on global context

Jimmy Carter: The Context Of Global Health

GLOBAL HEALTH (LEADERSHIP, IMPORTANCE) The context of global health is complex and involves an interdisciplinary approach through a cohesive interaction of medicine, public health, human rights advocacy, sociology and economics to achieve the goal of improving the health of all people. (Koplan et al., 2009) defines global health as an “area for study, research, and practice that places a priority on improving health and achieving equity in health for all people worldwide”, emphasizing the involvement…

Words 703 - Pages 3

Essay on Cultural Contexts in Global Media

CULTURAL CONTEXTS IN GLODAL MEDIA CHRISTINA VANDERMARK ELIZABETHTOWN COLLEGE My paper will show different global media throughout the world on the death of a Palestinian man, Arafat Shalish Shahin Jaradat, while detained in a Israeli prison. While doing my research I found many different types of global media reports on my topic. Depending in which culture the news was being reported, details and information were affected in different ways. I will also show the differences from these cultures…

Words 1530 - Pages 7

Personal Project: Global Context Of Personal And Cultural Expression

My personal project focuses on the global context of personal and cultural expression. Personal and cultural expression is all about exploring and extending ideas, cultures, feelings, values, beliefs, and creativity. In my project, I will investigate the different characteristics of the music based on classical period and gather all the information to create an app by extending the creativity. Also, by researching the western music, I had opportunity to explore their culture as well. Personal Interest…

Words 473 - Pages 2

Global Warming Essays

Global warming is a real phenomenon. Worldwide events like global warming are being created by the human population, especially when they endeavor for comfort. Many people live day by day in their own little world not thinking about the long term effects of their daily activities. The world’s climate is everyone’s problem and everyone will be affected by it even if they are cognizant by the seriousness of global warming or not. Many people do not realize the continuous increase of greenhouse gases…

Words 629 - Pages 3

Essay on Lecture 11

where the parent company is based, who are sent to work in another Pressing Challenges re: Global Staffing & Relocation Candidate identification, assessment, selection Global assignment cost projections Specific assignment letters (contacts9 Compensation, benefits, and tax programs Relocation assistance Family support Why Expats Assignment Fail? Expat Assignment Fail: Early return of an expat from a global assignment Family issues are the number one cause of the expat assignment fail. Therefor, it…

Words 783 - Pages 4

The Citizen Mignolo Summary

humanity, and global belonging, Mignolo hopes to create a shift that acknowledges the diverse experiences and epistemologies of all peoples, rather than imposing a Eurocentric, racially biased framework. This decolonial approach is not only a critique of existing structures, but also a call for a more inclusive, equitable vision of global citizenship that transcends the colonial legacies of race and racism. Critically examining the nature of race and property within the U.S. context, highlights the…

Words 2143 - Pages 9

Culture In Global Leadership

the article titled “Dimensionalzing Cultures: The Hofstede Model in Context” where culture is defined as “culture is the collective programming of the minds which distinguishes the members of one group or society from those of others”. Managing people belonging to different cultures will quickly become a difficult task if one is inept with lack of perspective of what culture means…

Words 1361 - Pages 6

Globalization and Its Impact on Marketing Strategies Essay

relationship between global market opportunities and performance stronger than the relationship between global market threats and performance? By answering these questions, the study indicates the extent to which firms in two different economic contexts are affected by globalization. It also shows which dimension of…

Words 5002 - Pages 21

Essay on Review"an End to China's Imbalance"

Summary 3 2.1 Aim and Objectives of This Paper 3 2.2 Driving factors 4 2.3 Domestic Context 5 2.4 Empirical Analysis and Outlook 6 3. Appraisal 6 3.1 Strengths of This Paper 7 3.2 Limitations of This Paper 7 4. Conclusion 8 Reference 8 Introduction The recent fall in China’s external surplus have significant influences on China’s economy and global economy. From a global point of view, the reduction of China current account surplus has not doubt relieved the possibility…

Words 2032 - Pages 9

Globe: Investment and Comparable Institutional Contexts Essay

Based on your institutional context decide whether you’ll adapt your business model, change the institutional context or Stay away Many CEOs are wary of emerging markets and prefer to invest in developed nations -Many corporations enter new lands because of senior managers’ personal experiences, family ties, gut feelings, or anecdotal evidence. Others follow key customers or rivals into emerging markets; the herd instinct is strong among multinationals. -Companies use composites to analyze a…

Words 483 - Pages 2