Globalization

IB Business and Management

Sha Tin College Business Education Department

 Globalization

 Integration and
interdependence of the
world’s economies
 Why such dramatic
growth?
• Trade Liberalization
• Technology
• Deregulation
• Cultural exports
• Language

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Impacts on business
Competition Economies
of Scale Customer
Expectations

Markets

M&A
Location

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 Multi-National Corporation

 Why?  Issues
• Customers • Local knowledge
• Economies of Scale • Distribution
• Protected Markets • External Factors
• Production Costs • Infrastructure
• Risk Reduction

Sha Tin College Business Education Department

 Exercise

 Hoang, page 157

 Question 1.9.3
 All parts (a,b,c,d)

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 MNC impact on host country

 Positive  Negative
• Jobs • Unemployment
• Competition • Competition
• GDP
• Knowledge transfer
• Technology transfer
• CSR

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 Regional Trading Blocs

 Eliminate trade barriers  Examples

• tariffs • WTO
• quotas • EU
 goods, services, labour and • NAFTA
capital • ASEAN
 Free trade

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 Research Assignment

 Select any MNC

 Select any country the
MNC has operations
 Evaluate the impact
on the host country
 Present findings in
poster format (A3)

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 Learning Outcomes

 Multinational companies
• Discuss reasons for the growth of multinational companies.
• Analyse the role played by multinationals in the global business
environment.
• Evaluate the impact of multinational companies on the host
country.
 Regional trading blocs
• Explain the impact on business of a country that is a member of a
regional economic group/bloc.

Sha Tin College Business Education Department