国际商务

Chapter 1: Globalization

Definition for globalization Reasons for globalization

The effects of globalization on economy The facet of globalization

Chapter 2: National Differences in Political Economy

Reasons and driver

Levels of Regional Economic Integration Effect on Economy

Chapter 9: The Foreign Exchange Market

The function of the foreign exchange

market

Political system Economical system Legal system

The effect of the differences on Economy

Chapter 3: Differences in Culture

The nature

Chapter 10: The International Monetary System

What is culture

The effect of the difference in culture on

Economy

Chapter 4: Ethics in International Business

Gold Standard

The Bretton Woods System

The Collapse of Fixed Exchange Rate

System

The Floating Exchange Rage Regime IMF

Chapter 11: The Global Capital Market

Ethical issues in International Business

Chapter 5: International Trade Policy

The Overview of Trade Policy Mercantilism

The Theory on International Division of

Labor

The benefits

Foreign exchange rate risk in international

business

Chapter 12: The Strategy of International Business

Chapter 13: The Organization of International Business

Absolute Advantage Comparative Advantage Heckscher-Ohlin Theory

The Product Life-Cycle Theory

Chapter 14: Entry Strategy and Strategic

Alliances

Chapter 15: Exporting, Importing, and Countertrade

National Competitive Advantage

Chapter 6: The Political Economy of International Trade

Instruments of Trade Policy Protection of Trade

Tariff and Non-tariff policy:

Subsidy, dumping of goods, dumping of

foreign exchange

Chapter 7: Foreign Indirect Investment

Export and Import Financing Export Assistance

Chapter 16: Global Production, Outsourcing and Logistics

Chapter 17: Global Marketing and R&D Chapter 18: Global Human Resource Management

Chapter 19: Accounting in International Business

Chapter 20: Financial Management in International Business

Development of FDI Style of FDI Theory of FDI

Political Ideology of FDI

Chapter 8: Regional Economic Integration Characteristic: wide fields

Globalization and Regional economic integration

International trade: theory, policy and importing and exporting

International finance: FDI, capital market, Foreign exchange rate, risk and risk management,

Monetary system.

International business management: Business structure, International strategy, Organization of International Business, Entry Strategy and Strategic Alliances, Global Human Resource Management

International marketing

 Accounting in International Business , Financial Management in International Business

Main Aspects about Globalization

Definition for Globalization Facets of Globalization Reasons for Globalization International Organizations Drivers for Globalization Process of Globalization Debate on Globalization

What Is Globalization?

The world is moving away from self-contained national economies toward an interdependent,

integrated global economic system

Globalization refers to the shift toward a more integrated and interdependent world economy

Globalization has two facets: 1) the globalization of markets 2) the globalization of production The Globalization Of Markets

The globalization of markets refers to the merging of historically distinct and separate national

markets into one huge global marketplace

In many industries, it is no longer meaningful to talk about the “German market” or the

“American market”

Instead, there is only the global market

The Globalization Of Markets (Reasons)

Falling trade barriers make it easier to sell internationally

The tastes and preferences of consumers are converging on some global norm

Firms help create the global market by offering the same basic products worldwide

Product life cycle and consumption

The relationship between consumption and the period and level of economic development of

nation

Falling trade barriers make it possible

Classroom Performance System

The shift toward a more integrated and interdependent world economy is referred to as

a) economic integration

b) economic interdependency

c) globalization

d) internationalization

The Globalization Of Production

The globalization of production refers to the sourcing of goods and services from locations

around the globe to take advantage of national differences in the cost and quality of factors of production like land, labor, and capital

Companies compete more effectively by lowering their overall cost structure or improving the

quality or functionality of their product offering

Explanation for the differences in advantage of factors of production

Factor endowment and the cost of factors

Period and level of economic development and the cost of factors

Classroom Performance System Classroom Performance System

The Emergence Of Global Institutions Institutions are needed to:

help manage, regulate, and police the global marketplace

promote the establishment of multinational treaties to govern the global business system

The Emergence Of Global Institutions

Institutions created over the past half century include:

the General Agreement on Tariffs and Trade (GATT) the World Trade Organization (WTO) the International Monetary Fund (IMF) the World Bank

the United Nations (UN)

The Emergence Of Global Institutions

The World Trade Organization (like its predecessor GATT) is primarily responsible for policing

the world trading system and making sure that nation-states adhere to the rules laid down in trade treaties signed by WTO members

In 2007, the 150 nations that accounted for 97% of world trade were WTO members The WTO promotes lower barriers to trade and investment

The Emergence Of Global Institutions

The International Monetary Fund and the World Bank were created in 1944 The IMF was established to maintain order in the international monetary system The World Bank was established to promote economic development

The Emergence Of Global Institutions

The United Nations was established in 1945 to:

maintain international peace and security develop friendly relations among nations

cooperate in solving international problems and in promoting respect for human rights be a center for harmonizing the actions of nations

Classroom Performance System

Which is not a factor of production?

a) trade b) land c) capital d) energy

Drivers Of Globalization

Two macro factors underlie the trend toward greater globalization:

the decline in barriers to the free flow of goods, services, and capital that has occurred since the

end of World War II

technological change (microprocessor )

Declining Trade And Investment Barriers

International trade occurs when a firm exports goods or services to consumers in another

country

Foreign direct investment (FDI) occurs when a firm invests resources in business activities

outside its home country

After World War II, advanced countries made a commitment to lower barriers to trade and

investment

Since 1950, average tariffs have fallen significantly and are now at about 4% Countries have also been opening markets to FDI

Classroom Performance System

The sourcing of good and services from around the world to take advantage of national differences in the cost and quality of factors of production is called

a) economies of scale

b) the globalization of production c) global integration d) global sourcing Declining Trade And Investment Barriers

Table 1.1: Average Tariff Rates on Manufactured Products as Percent of Value Declining Trade And Investment Barriers

Lower barriers to trade and investment mean:

that firms can view the world, rather than a single country, as their market that firms can base production in the optimal location for that activity

Classroom Performance System

Which organization is responsible for policing the world trading system?

a) the International Monetary Fund b) the United Nations

c) the World Trade Organization

d) the World Bank

The Role Of Technological Change

Technological change has made the globalization of markets a reality

Important advances have occurred in:

microprocessors and telecommunications the Internet and World Wide Web transportation technology

The Role Of Technological Change

Implications of technological change for the globalization of production include:

lower transportation costs that enable firms to disperse production to economical,

geographically separate locations

lower information processing and communication costs that enable firms to create and manage

globally dispersed production systems

The Role Of Technological Change

Implications of technological change for the globalization of markets include:

low cost global communications networks help create electronic global marketplace low-cost transportation help create global markets

global communication networks and global media are creating a worldwide culture, and a

global market for consumer products

The Changing Demographics Of The Global Economy

There has been a drastic change in the demographics of the world economy in the last 30

years( 经济统计数据)

Four trends are important:

the Changing World Output and World Trade Picture the Changing Foreign Direct Investment Picture the Changing Nature of the Multinational Enterprise the Changing World Order

The Changing World Output And World Trade Picture

In 1960, the United States accounted for over 40% of world economic activity

By 2006, the United States accounted for less than 20% of world economic activity A similar trend occurred in other developed countries

The share of world output accounted for by developing nations is rising and is expected to

account for more than 60% of world economic activity by 2020 The Changing World Output And World Trade Picture

Table 1.2: The Changing Demographics of World GDP and Trade The Changing Foreign Direct Investment Picture

In the 1960s, U.S. firms accounted for about two-thirds of worldwide FDI flows Today, the United States accounts for less than one-fifth of worldwide FDI flows Other developed countries have followed a similar pattern

In contrast, the share of FDI accounted for by developing countries has risen from less than 2%

in 1980 to almost 12% in 2005

Developing countries, especially China, have also become popular destinations for FDI

The Changing Foreign Direct Investment Picture

Figure 1.2: Percentage Share of Total FDI Stock 1980-2005 The Changing Foreign Direct Investment Picture

Figure 1.3: FDI Inflows 1988-2006 Classroom Performance System

What is the single most important innovation to the globalization of markets and production?

a) advances in transportation technology b) the development of the microprocessor c) advances in communication d) the Internet

The Changing Nature Of The Multinational Enterprise

A multinational enterprise (MNE) is any business that has productive activities in two or more

countries

Since the 1960s, there has been a rise in non-U.S. multinationals, and a growth of

mini-multinationals

The Changing World Order

Many former Communist nations in Europe and Asia are now committed to democratic politics

and free market economies and so, create new opportunities for international businesses

China and Latin America are also moving toward greater free market reforms

The Global Economy Of The Twenty-first Century

The world is moving toward a more global economic system, but globalization is not inevitable Globalization also brings risks like the financial crisis that swept through South East Asia in the

late 1990s

Classroom Performance System

Which of the following trends is true?

a) the United States is accounting for a greater percentage of world trade than ever before

b) the United States is accounting for a greater percentage of foreign direct investment than ever before

c) the share of world trade accounted for by developing countries is rising d) the share of foreign direct investment by developing countries is declining The Globalization Debate

Focus of Debate on globalization

Economical aspect:

1. economic growth and development 2.welfare

Political aspect:

1.Gap between nations and national sovereignty

Social aspect:

1.environment degradation

2.unenployment and cultural imperialism

The Globalization Debate

Is the shift toward a more integrated and interdependent global economy a good thing?

Supporters believe that increased trade and cross-border investment mean lower prices for

goods and services, greater economic growth, higher consumer income, and more jobs

Critics worry that globalization will cause job losses, environmental degradation, and the

cultural imperialism of global media and MNEs Anti-Globalization Protests

More than 40,000 anti-globalization protesters took to the street at the WTO meeting in Seattle

in 1999

Protesters now regularly show up at most major meetings of global institutions

Globalization, Jobs, And Income

Globalization critics argue that falling barriers to trade are destroying manufacturing jobs in

advanced countries

Supporters of globalization contend that the benefits of this trend outweigh the costs—that

countries will specialize in what they do most efficiently and trade for other goods—and all countries will benefit

Globalization, Labor Policies, And The Environment

Globalization critics argue that firms avoid costly efforts to adhere to labor and environmental

regulations by moving production to countries where such regulations do not exist, or are not enforced

Globalization supporters claim that tougher environmental and labor standards are associated

with economic progress, so as countries get richer from free trade, they get tougher environmental and labor regulations Globalization And National Sovereignty

Critics of globalization worry that today’s interdependent global economy is shifting economic

power away from national governments toward supranational organizations like the WTO, the EU, and the UN

Supporters of globalization contend that the power of these organizations is limited to what

nation-states agree to grant, and that the power of the organizations lies in their ability to get countries to agree to follow certain actions Globalization And The World’s Poor

Critics of globalization argue that the gap between rich nations and poor nations is getting wider Supporters of globalization claim that the best way for the poor nations to improve their

situation is to reduce barriers to trade and investment and implement economic policies based on free market economies, and to receive debt forgiveness （债务豁免） for debts incurred under totalitarian regimes

Classroom Performance System

Which of these is not a concern of anti-globalization protesters?

a) globalization raises consumer income

b) globalization contributes to environmental degradation

c) globalization is causing a loss of manufacturing jobs in developing countries d) globalization implies a loss of national sovereignty Managing In The Global Marketplace

An international business is any firm that engages in international trade or investment

Managing In The Global Marketplace

Managing an international business differs from managing a domestic business because:

countries are different

the range of problems confronted in an international business is wider and the problems more

complex than those in a domestic business

firms have to find ways to work within the limits imposed by government intervention in the

international trade and investment system

international transactions involve converting money into different currencies