Chapter 9 Globalization Challenges and Changes By Muhammad

Chapter 9 Globalization, Challenges and Changes By Muhammad Faisal Hamidi

Slide 9. 2 Globalization can be referred to as a phenomenon, a process, a state or a concept. is a process that refers to the growth of interdependencies between national markets and industries on a worldwide scale. 1830 -1890 – improvement in transportation 1900 -1930 – electricity and steel production 1948– 1970 s – GATT, end of World War II 1980–current - establishing of computing technology, ICT, automation etc. Brooks, Weatherston and Wilkinson, The International Business Environment: Challenges and Changes , 2 nd Edition, © Pearson Education Limited 2011

Globalization Forces Figure 9. 1 Selected factors in the macro environment that impact on globalisation

Figure 9. 5 The world’s largest economies in 2050 Source: Goldman Sachs Global Economic Group Global Economics paper No: 170 The Expanding Middle: The Exploding World Middle Class and Falling Global Inequality GS GLOBAL ECONOMIC WEBSITE Economic Research from Goldman 360 at https: //360. gs. com – only available via subscription

Slide 9. 5 Globalization Drivers Market Drivers Similar customer needs and tastes Existence of global customers Transferable marketing between countries Etc. Competitive Drivers Competitor’s global strategies Country interdependence Cost Drivers Scale economic and scope Country-specific differences Government Drivers Trade policies Local regulation Technical standard Etc. Brooks, Weatherston and Wilkinson, The International Business Environment: Challenges and Changes , 2 nd Edition, © Pearson Education Limited 2011

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