Topic 1: Introduction to

Globalization
1.0 Globalization Business and its environment
• What is Globalization ?
 It refers to the changes in the world where
we are moving away from self-contained
countries and toward a more integrated
world through various of cross border
transactions such as business, economy,
services, technological, cultural, political,
social, knowledge and etc.
• What is Globalization Business?
 The changes in a business from a company
associated with a single country to one that
operates in multiple countries such as
movement of goods, services, labour,
technology, and capital throughout the
world.
 1.1 Drivers of Globalization (factors influence)
 Innovations in the transportation technology revolutionized the industry
Technology  commercial jet aircraft and the concept of containerisation in the late 1970s
and 1980s
 highly effective computing and communication
 rapid growth of the Internet is the latest technological driver that created
global e-business and e-commerce

 Unrestrictive trade and investment policies

Political  lowered tariffs and allowed foreign direct investments
 ASEAN free trade zone, EUROPE free trade

Market  Due to high demands or saturated in local market, domestic companies

moving to global in order to expanding their business

Cost  Sourcing efficiency and costs vary from country to country and global firms
can take advantage of this fact

 global inter-firm competition increases and organizations are forced to “play”

international
Competition   Strong interdependences among countries and high two-way trades and FDI
actions also support this driver
Evolution from globalization : Computing
(processing)

TO

Charles Babbage’s Ultramobile personal

Difference Engine computer
(1822)
 Computing (continued – storage)

TO

Sony Micro Vault Thumb Drive

First disk storage unit by IBM (1956)
Capacity: 2 gigabytes
Capacity: 5 megabytes
Size: Refrigerator
 Second Steroid:
Instant Messaging and File Sharing

Instant messaging
(example)

File sharing (example)

 Fourth Steroid:
Videoconferencing

A telepresence system in a conference room

Videoconferencing (continued)

An individual telepresence system

 Fifth Steroid:
Computer Graphics
 Sixth Steroid:
Wireless Technologies

Using cell phone in

motion

Geostationary satellite

Bluetooth phone sunglasses

1.2 Stages of Globalization in Business
2.0 Challenges in Globalization

Natural resources,
1. Physical terrorism, climate location

Cultural, legal,
2. social nationalization, and
different political system

Firm’s strategy, price,

3. cost-effectiveness, firm’s
Competitive size, market size,
competitors
 Let’s we
have look
on
The World
Trade
Trend
 Let’s we
have look
on
The World
Trade
Trend
 Let’s we have look on
The World Trade Trend
 Various globalization drivers have affected
the logistics firms:
THE LOGISTICS • Global markets- potential growth &
intense competition push
CHALLENGES OF manufacturers expand
GLOBALIZATION • New technology- faster production and
movement
• Cost management
• Profitability
• Meeting customer requirements and
• Supply chain flexibility
• Other factors: Business network,
political stability, micro & macro
economical forces
THANK YOU Q&A