GLOBALIZATION

GLOBALIZATION

1. is the close integration of countries and peoples of the world (1)

   • some evidence in economy includes
     • INTERNATIONAL BUSINESS
       • crossboarder
       • for example
     • GLOBAL BUSINESS
       • around the globe
       • MULTINATIONAL ENTERPRISES
         • operating in multiples countries, these firms do foreign direct investment, usually under control of an expatriate manager who receives and international premium for working outside native country.
   • keeping in mind factors as
     • FORMAL AND INFORMAL INSTITUTIONS (rules of the game)
     • SCENARIO PLANNING (preparation for several scenarios, not only high risk ones)
     • RISK MANAGEMENT (identification and planning for risks)
     • PURCHASING POWER PARITY (conversion that sets equivalent amount of goods and services in different currencies)
     • EMERGING ECONOMIES (countries in development)
     • GROSS DOMESTIC PRODUCT (total values produced by firms, households and government)
     • LIABILITY OF FOREIGNESS (condition that foreign firms have to asset in order to stablish in a host country)

2. coming into play

   • BRIC (Brazil, Russia, India and China emerging economies)
   • GROUP OF 20 (19 major economies and the EU, meeting to solve economic problems)
   • TRIAD (developed economies like USA, Japan and Western Europe)
   • BASE OF THE PYRAMID (most humans, doing less than $2000 a year)
   • NGOs (organizations not affiliated with governments)

3. some views on this include

   • SEMIGLOBALIZATION
     • suggests that barriers for market integration are not high enough
   • INSTITUTION BASED VIEW
     • suggests that firms depend on institution framework
   • RESOURCE BASED VIEW
     • suggests that firms depend on internal resources