Globalization - Definition of Globalization, Slides of Strategic Management

Download Globalization - Definition of Globalization and more Slides Strategic Management in PDF only on Docsity! Globalization By: Raajkumar.s Globalization Definition  It refers to the increasing global relationships of culture, people, and economic activity. It is generally used to refer to economic globalization:  The global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import fees and the reduction of restrictions on the movement of capital and on investment. Globalization Si ng ap or e Ire la nd Sw itz er la nd Un ite d St at es Ne th er la nd s Ca na da De nm ar k Sw ed en Au st ria Fi nl an d Top Ten Globalized Countries Globalization and Marketing  Expands the market in which consumers buy from  Access EBay sellers from across the globe.  Two Strategies for Businesses:  Global Strategy ▪ Reduce marketing costs by standardizing product and marketing strategy  Multi-National Strategy ▪ Adapt products and marketing strategies in each national market to suit local preferences Globalization  Outsourcing and globalization of manufacturing allows companies to reduce costs, benefits consumers with lower cost goods and services, causes economic expansion that reduces unemployment, and increases productivity and job creation. -Larry Elder Sweatshops  Sweatshop: A manufacturing workplace that typically treats its workers inhumanely, paying low wages, and imposing harsh and unsafe working conditions  In some countries, workers do not have the protections that they have here  Minimum wage, child labor laws, overtime, safety regulations, etc.  Companies accused of using sweatshops:  Nike, Disney, Wal-Mart Exhibit 6 POTENTIAL SURPLUS POPULATION IN WORKING AGE GROUP - 2020 (MN) Indonesia Australia 2 Note: Potential surplus is calculated keeping the ratio of working population (age group 15-59) te total population constant Source: U.S. Census Bureau; BCG analysis Globalization UNETHICAL PROBLEMS:  Global Inequality ▪ Widening gap of rich and poor  Environmental Regulations  Emission of harmful toxins  Exploits Labor Standards  Reduction of wages  Long hours (12 or more)  No benefits One Last thought…  “We must ensure that the global market is embedded in broadly shared values and practices that reflect global social needs, and that all the world's people share the benefits of globalization.” -- Kofi Annan