CHAPTER 1: GLOBALIZATION

I. Differences between business activities and international business

activities
- Business activities relate to mostly goods trading within one country, and the
laws applied are from one country only
- Meanwhile IB activities are those related to trading across several countries,
the laws governing are from the parties’ country.
II. Problems of globalization
- A family traveling countries in Europe, the UK but the products all come from
America (Nike, Disney, Mc Donald’s, GAP)
III. What is globalization
- Globalization refers to the shift toward a more integrated and interdependent
world economy
- Differences: from language, tradition, social norms, … >< globalization creates
the similarity
- On-going trend of globalization: percentage of VN brands you use every
day??? Less than 30%
- Traits of globalization:
o Using international products without recognition
o Signing bilateral contracts between countries

IV. The stages of globalization

- 4 stages:
o From 1492 to 1800: focus on domestic
 o From 1800 to 2000: the beginning stage of delivering overseas,
international market but main focus is still domestic
o From 2000 to 2020: Companies begin to take into account the
differences, preferences between nations, customers -> new different
solutions to maximize the supply towards the global demands
o From 2020 to now: More data and access to information across the
world -> more challenges and opportunities -> firms trying to combine
the preferences of both domestic and international customers.
V. Opportunities and threads

Opportunities Threads
Economic growth by gaining more
profit (globalization of the products)
Innovation and technology transfer
Poverty reduction
Cultural exchange

- Describe the drivers of globaliasation