Business and

CLASS 3 Management in A
Global Context
Dr. Howaida M. Barakat
Topic one:
Introduction to the global
business environment
Perspectives on globalization and
international business

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Introduce Your Group

Name Name TYCOONS BUSINESS TIES CEOs

Nour Aya Yehia Mounai Abdelfattah
Mostafa Martina Haneen Sara Hussein
Samir Madiha Razan Nadine Ali
Malak Maya Rawan Toka Ibrahim
Abdelrahman Mohamed Laila Abdelrahman Mostafa
Mohamed

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 A typical essay contains the following parts:
- introducing the argument,
- Background material,
- analyzing data,
- raising counterarguments,
- concluding.

An essay should answer: The What? The How? The Why?

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6
CLASS 3
Learning Outcomes
1.4, 1.5
• Understand the major globalization debates and
assess under what conditions and for whom
globalization can be considered an advantage or
disadvantage

• Describe the implications of globalization for

companies operating internationally

• Assess the short- and long-term implications for

international business arising from crises, and
emerging global trends, including de-globalization.

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One Fundamental Question
Laws,
Regulations,
Rules

Culture,
Ethics,
Norms

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CASE STUDY: GE Healthcare in India

• What are the similarities and differences between traditional and reverse
innovation?

• Why is GE so interested in reverse innovation?

• What are the main concerns that prevent western MNEs from
aggressively investing in emerging economies? What are the costs of not
doing so?

• Why is a leading US multinational like GE afraid of emerging

multinationals from emerging economies?

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CASE STUDY

WHY WOULDN’T APPLE MAKE THE IPHONE IN THE UNITED STATES?

2010

Job’s answered: “Those jobs aren’t coming back”

For Apple Manufacturing overseas mean cheap

yet skilled workers and vast scale factories.

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 2012 2013 & 2014 2015 2017

Sunnylands Summit U.S.-China Trade

US-China Rising Trade
President Obama hosts
Tension
President Xi
Joint Climate Agreement
U.S. Warns China Over
War Escalates
South China Sea

End of 2012, Apple CEO; Tim Cook announces that

APPLE will start making some MAC PROS in the US
Austin factory.

Despite supporting Hillary Clinton, Cook

participated in Trump’s summits and dinners at the
while house.

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 The US Austin factory caused Apple financial losses due to low
volume and expensive production line as well as lack of skilled
labors.

In 2018-2019, Trump was eager to reduce US-China trade:

• Tim invited Trump to the Austin factory and Trump happily
said: “I said, we are going to see Apple building and
manufacturing in the US not China”

• Tim Showed Trump that though apple products are labeled

“made in China” but it is just shipped from there however
Japan contribute 34%, Germany 17%, South Korea 13%, US
6% and China only 3.6%

APPLE SURVIVED THE TARIFFS ON “ASSEMBLES IN CHINA”

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 Key Concepts
WRAP-UP Confirm Knowledge and Understanding

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The globalization Debate
Four major areas of debate

1. JOBS & INCOME 2. LABOUR POLICIES AND THE ENVIRONMENT

International trade agreements to

the implementation of tougher
Prompt countries to environmental and labor laws
specialize in what they
can produce most
efficiently

Moving from countries with

Jobs are being lost to low- environmental standards, to move to
wage nations less developed countries with lax
environmental and labor regulations

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The globalization Debate
Four major areas of debate

3. SHIFTS IN ECONOMIC POWER 4. WEALTH DISTRIBUTION

Supranational organizations Promote Gap between rich and poor has got
collective interests, and their power is wider, because of the policies
countries have followed
limited to that granted by their members.

Gap between rich and poor is growing

and that the benefits have not been
Power shifting away from shared equally
governments to supranational
organizations like the WTO

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Does Distance Still Matter?

A ‘hyper-globalists’ who believes

The cultural, administrative and
globalization is accelerating and is
geographical distance between nations
flattening the world so that every
presents a fundamental challenge to
nation will eventually be part of the
companies facing the globalization of the
global marketplace and production
world economy
process.

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 What does
globalization
mean for
companies?
• Low barriers to trade and investment

• Technological change Managing a company

that engages in
• Transportation improvements
international business
is very different from
managing a domestic
business.
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Definitions:

INTERNATIONAL BUSINESS
The action of doing business abroad. A business that engages in cross boarder economic activities.

MULTINATIONAL ENTERPRISE
A business that engages in FDI.

STAKEHOLDER
Any group or individual who can affect or affected by the actions of the business.

TRIPLE BOTTOM LINE

Sustainability pillars: economic, social and environmental performance.

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Definitions:

BUTTERFLY EFFECT
simple actions yield large rewards.

BUTTERFLY DEFECT
The dynamics globalization has the potential and power to destabilize societies.

BLACK SWAN
An unpredictable event that is beyond what is normally expected of a situation and has potentially severe
consequences.

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Week 2 Question
PLEASE TRY TO CITE

• Ghemawat, P. ‘Distance still matters: the

Q U EST I ON
If, in 2021, a UK multinational retailer of men and women’s clothing
chose to operate in your country, what difficulties do you think they
would encounter? Recall also that the UK left the European Union in
December 2020.
hard reality of global expansion’, Harvard
Business Review 79(8) pp.137–47.
• Willcocks, L. Global business: strategy in
context. (Stratford-upon-Avon, UK: SB
Publishing, 2021a), Chapters 1 and 7.
• Willcocks, L. ‘Can business recover from
the crisis? Assessing scenarios, riding
trends.’ Journal of Financial
Transformation, 2021, January, 52, 1,
pp.94–101
REMEMBER
• Use ‘TurnItIn’ to check for plagiarism,
produce the report and send it along with
your submission.
• Cite your references using APA style

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 Topic 1: Introduction to the global business environment
Chapter 2: Political, economic and legal environments

2.1 Introduction
2.2 An institution-based view of international business

Next Class 2.3 Political System

Reading pages: 29 - 33

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Thank You
Dr. Howaida M. Barakat
Howaida.barakat@eue.edu.eg

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