International Business &

Finance
What to expect from this course?
 Instructor Information
Name: M. Sarfraz Khan
Designation: Lecturer – Commerce @ PUGC
Teaching Interests: Research, Finance
18 Research Publications, 5 Presentations in International Conferences

Email: sarfraz.khan@pugc.edu.pk
Twitter: @sarfrazkhalil
Contact: 0345-4090403
Website: www.sites.google.com/view/sarfrazkhalil
Teaching Resources: www.sites.google.com/prod/view/sarfrazkhalil/teaching
Globalization
Opportunity or Threat ?
Globalization – Fun Perspective
What is globalization?
Globalization – Process by which markets integrate worldwide.
– Shift towards more integrated and interdependent world
economy
Implications
What globalization brings?
• Increased reach – more sales,
lower costs
• Free market system – more
deregulation
• Increased (foreign) competition
• Global firms following each other
• More options – investment
diversifications
Practical Examples
• Global pandemic COVID-19
• Global financial crisis of 2007-08
• European Union and Brexit
• US-China trade war
• Outsourcing – India & China
• CPEC
• Chinese, Italian, Arabic Foods
 Globalization of
Production
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
Global institutions – Facilitating globalization
• World Trade Organization (WTO) [Previously GATT] – Regulates and facilitates international trade
between nations. Lowering of barriers to cross border trade and investment.
• Overseeing the implementation, administration and operation of the covered agreements
• Providing a forum for negotiations and for settling disputes.
• International Monetary Fund (IMF) – Maintains order in international monetary system – Lender
of the last resort for countries
• Economic surveillance
• Lending to resolve BoP issues
• Capacity development
• World Bank (WB) [Previously IBRD] - Promotes economic development by providing lower
interest loans for infrastructural development
• Poverty reduction
• Supporting economic development
• United Nations (UN) – Preserving peace through international cooperation and collective security
• Maintaining internal peace and security
• Developing friendly relations among nations
• Cooperating in solving international problems
• Promoting respect for human rights
Drivers of globalization
• Declining trade and investment barriers
• Reduction of tariffs & trade quotas
• Elimination of ‘beggar-thy-neighbor’ retaliatory trade policies
• After WWII  GATT was negotiated to maintain free flow of goods & services
• Technological changes
• Microprocessors & Telecommunications
• Internet & World Wide Web (www)
• Transportation technology
Changing dynamics of globalized world
• Role of emerging economies in trade and FDI – China, India, Brazil
• From large MNCs to Mini MNCs - Netflix, Zoom, FoodPanda
• Changing World order – Communism, capitalism, and globalism
Globalization: Good, Bad, and Ugly
• Free markets, optimal resource utilization, price competitiveness,
more inclusiveness, job opportunities
• Corporate imperialism, job losses, low wages, labor exploitation, child
labor, corruption, foreign competition, income inequality, pollution
• Protests – Brexit, US capital riots, politics, racism
Debate on Globalization - Jobs & Income
Critics
• Shifting production & service
facilities to poor nations 
Destroying jobs in US & Europe
Supporters
• Promotes specialization, efficiency
& reduces costs  lower prices
• Increase income level in poor
countries  increase in imports
from US
• Data suggests that income of skilled
labor has increase, while income of
unskilled labor has declined 
Technology induced shift
Debate on Globalization – Labor & Environment
Critics
• Manufacturing shifts to poor
countries with weak
regulations/laws on labor and
environment  Increase labor
exploitation and pollution
Supporters
• Economic development 
better regulatory environment
• Embedding stringent legislation
into free trade agreements
• Ethical managers behave socially
responsible
• Well treated labor force is more
productive
Debate on Globalization – National sovereignty

Critics Supporters
• WTO, IMF, UN, EU force national • Collective global consensus on
governments, who are losing issues
their independence to decide • Collective benefit to whole world
about their own economic
preferences
• Democratic governments lose
their right to govern
Assignment 1 – Individual Part
• One page – Around 300 Words
• Copy/pasting = Zero Marks
• Watch following videos to form a view on the ‘Future of Globalization’ – you
may also explore internet and other sources for more details
• Explain and justify your point of view through examples/ arguments

1. The end of globalization (and the beginning of something new) by Mike

O'Sullivan
https://www.ted.com/talks/mike_o_sullivan_the_end_of_globalization_an
d_the_beginning_of_something_new?language=en
2. Globalization is not declining – its transforming by Arindam Bhattacharya
https://www.ted.com/talks/arindam_bhattacharya_globalization_isn_t_de
clining_it_s_transforming#t-289318
3. Why will future globalisation be so different by Richard Baldwin
Assignment 1 – Group Part
• Group of 3-5 people
• Make a video of TikTok or Likee or any such app
• You can choose any theme related to Globalization
• Video can be funny, serious, or sad but must highlight some specific
aspect of globalization

• These videos will combine to form final project in the end.