global vs intl

1
What is Globalization?
Chapter 1-1
2

• Lets start with youwhat do you care about in
  the world how can you live a life to show it?

3
Global Citizens are Part of

• The globalization process whereby worldwide
  interconnections in virtually every sphere of
  activity are growing.
• This process is perceived as presenting both
• Opportunities (O) and
• Threats (T) or O/T.
• However, as Chapter 1 indicates, people define
  and perceive globalization in different waysthis
  is a topic of our studies today.

4
Varying Definitions of Globalization

• Absence of borders and barriers to trade between
  nations (Ohmae, 1995).
• A shift in traditional patterns of international
  production, investment, and trade (Dicken, 1992).
  
• A business strategy that means doing everything
  the same everywhere (Porter, 1990).
• Interconnections between overlapping interests of
  business and society (Brown, 1992 Renesch,
  1992).

5
International Business

• By definition INTERNATIONAL BUSINESS means
  between or among nations.
• GLOBAL BUSINESS takes place on a worldwide scale
  rather than among a few nationsemphasis is on
  interconnections.

6
How do These Events Interconnect the World?

• World Cup soccer
• Samsungs brand strategy
• U.S. Steel industry tariffs (dropped in Dec. 03)
• The International Monetary Fund
• Cellular telephones
• The Kyoto agreement

7
International and Global Business

• International Management
• Cross-cultural management with emphasis on
  national characteristics
• Teaching emphasis
• Apply/adapt existing management theory
• Learning what to do in a given situation
• Management skills emphasized
• Self- and cultural awareness
• Cognitive knowledge of nations
• Interpersonal and communication skills
• Global Management
• One world scenario with growing interdependence
• Teaching emphasis
• Unlearn what to do re-examine theories
  create new ones balance both/and thinking
• Management skills emphasis
• Decision making with greater complexity
• Decision making under uncertainty
• Living with ambiguities
• Challenges that are managed but not "solvable"
• Knowing how to ask for help

8
Characteristics of the Globalization Process

• Growing worldwide interconnections
• Rapid, discontinuous change
• Increased number and diversity of participants
• Growing complexity

9
Managerial Skills and Abilities for a Global
World

• Develop a global mindset look at the big
  picture.
• Know the business and its environment.
• Create and convey a clear and ethical vision.
• Develop self-awareness and understanding.
• Manage diversity.
• Continuously learn.

10
How do Business Leaders Define Globalization?

• Most business leaders agree that globalization is
  occurring and most take an active role in shaping
  globalization of business.
• BUT this entails challenges and calls for
  particular skills and abilities.

11
Example Managerial skills at Nestlé

• Personal commitment and courage.
• Ability to motivate and to develop people.
• Curiosity and open-mindedness in other cultures
  and life-styles.
• Commitment to continuous learning and improving,
  as well as to sharing knowledge and ideas freely
  with others.
• Create a climate of innovation and to think
  outside the box.
• Willingness to accept change and ability to
  manage it.
• Credibility as a result of coherent action,
  leadership, and achievement.
• International experience and understanding of
  other cultures.

12
Three Perspectives on Globalization

• The Skeptical thesis
• The Hyperglobalist thesis
• A Transformational thesis

13
The Skeptical Thesis Globalization is Nothing
Newits Business as Usual

• History repeats itself
• Economies have always been interdependent
• Before 1914
• Interdependence high
• Investments flowed from New World to Old
• Immigration growing
• Nations will not change their habits
• And there are few true global firms

14
The Hyperglobalist Thesis Emphasizes Self-Interest

• Motivated by competition
• Motivated by power and greed as
• a New World Order to benefit those already in
  power (nations, businesses, people).
• consolidates power of big business and big
  governments. According to Falk (1993) nations
  and large organizations promote their own
  interests by spreading consumerism (globalization
  from above).
• Power is shifting from political leaders to
  business leaders.

15
New World Order

• Steingard Fitzgibbons (1996) blame scholars for
  promoting myths like
• Globalization leads to one healthy world culture.
• Globalization spreads naturally.
• Globalization brings prosperity to person and
  planet.
• Globalization represents Western perspectives.

16
Transformative Process

• A powerful transformative force whose outcomes
  are not clear.
• Long-term process reflecting contradictions and
  disjunctures.

17
Whats the Source of Transformation?

• Falk (1994) argues that it comes from below
• generated by social forces working toward
  community and
• voluntary groups rather than governments.

18
BUT Transformation also Comes from Businesses and
those in Power

• Businesses have a role to play in achieving
  justice.
• Economic justice
• Pay their workers more than the national average.
• Spend more on RD in countries where they invest.
  
• Tend to export more than domestic firms.
• Social justice
• Ordinary activities
• Benetton ads on peace and AIDS prevention.
• DuPont as an environmental champion.
• New initiatives
• Cause-based business/nonprofit partnerships.
• Corporate philanthropy.
• Numerous business foundations exist to help
  businesses meet social goals.

19
Transformative Social Process

• Recognize that businesses are made up of people.
• People generate social outcomes positive and
  negative.
• We decide what the future will be.

20
Which View of Globalization Resonates for You?

• Nothing newbusiness as usual.
• Globalization is competitive forces or a New
  World Order which benefits those with
  power/wealth.
• Globalization is a transformative process that
  can lead to social and economic justice.