Globalisation 111

7/29/2019 Globalisation 111

1/26

Globalisation andMultinational Business


2/26

Globalisation: Setting the Scene

Current issues in the global economy Defining globalisation

global economic interdependence

implications for business

What is driving globalisation?

market drivers

cost drivers government drivers

competitive drivers


3/26

The drivers of globalisationMarket drivers

Per capita income converging among industrialisednations

Convergence of lifestyles and tastesOrganisations beginning to behave as global customers

Increasing travel creating global consumers

Growth of global and regional channels

Establishment of world brands

Push to develop global advertising

Cost drivers

Continuing push for economies of scale

Accelerating technological innovation

Advances in transportation

Emergence of newly industrialised countries withproductive capability and low labour costs.

Increasing cost of product development relative tomarket life

Government drivers

Reduction of tariff barriers

Reduction of non-tariff barriers

Creation of blocs

Decline in role of governments as producers andcustomers

Privatisation in previously state-dominated economies

Shift to open market economies from closed communistsystems in eastern Europe

Increasing participation of China and India in the globaleconomy

Competitive drivers

Continuing increases in the level of world trade

Increased ownership of corporations by foreignacquirors

Rise of new competitors intent upon becoming globalcompetitors

Growth of global networks making countriesinterdependent in particular industries

More companies becoming globally centred rather thannationally centred

Increased formation of global strategic alliances

Other drivers

Revolution in information and communication

Globalisation of financial markets

Improvements in business travel


4/26

Market drivers







Cost drivers






Government drivers



Creation of blocs





Competitive drivers







Other drivers




The drivers of globalisation


5/26

Market drivers







Cost drivers






Government drivers



Creation of blocs





Competitive drivers







Other drivers






6/26

Market drivers







Cost drivers






Government drivers



Creation of blocs





Competitive drivers







Other drivers






7/26

Market drivers


Convergence of lifestyles and tastes

Organisations beginning to behave as global customers





Cost drivers






Government drivers



Creation of blocs





Competitive drivers







Other drivers






8/26

Market drivers


Convergence of lifestyles and tastes

Organisations beginning to behave as global customers





Cost drivers






Government drivers



Creation of blocs





Competitive drivers







Other drivers






9/26

Globalisation: Setting the Scene

Current issues in the global economy Defining globalisation

global economic interdependence

implications for business What is driving globalisation?

market drivers

cost drivers government drivers

competitive drivers

Globalisation: the good and the bad


10/26

Multinational Corporations

Statistics on growth and size ofMNCs

the comparative size of MNCs andcountries' GDP


11/26

Comparison of the 10 largest multinational corporations(by gross revenue) and selected countries (by GDP): 2002

MNCrank

CountryorCompany

GDP ($bn)orgross revenue

($bn)

USA 10,869.11 Wal-Mart Stores 219.8

Indonesia 212.9

Denmark 205.1

2 Exxon Mobil 191.6

3 General Motors 177.3

4 BP 174.2

Greece 165.2

China: Hong Kong 165.15 Ford Motor 162.4

Finland 158.2

Ireland 150.2

6 Enron 138.7

7 DaimlerChrysler 136.9

8 Royal Dutch/Shell Group 135.2

Thailand 132.4

Iran 127.89 General Electric 125.9

Argentina 121.8

10 Toyota Motor 120.8

Malaysia 102.7

Chile 65.9

Luxembourg 23.8

Kenya 12.9

Albania 5.3


12/26


Statistics on growth and size ofMNCs

the comparative size of MNCs andcountries' GDP

foreign direct investment (FDI) inflows


13/26

FDI inflows ($ millions)

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1970 1975 1980 1985 1990 1995 2000

FDIinflows($millions)

.

World

Developed countries

Developing countries


14/26

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1970 1975 1980 1985 1990 1995 2000


.

World

Developed countries




15/26

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1970 1975 1980 1985 1990 1995 2000


.

World

Developed countries




16/26

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1970 1975 1980 1985 1990 1995 2000


.

World

Developed countries




17/26

0.0

5.0

10.0

15.0

20.0

25.0

30.0

1985 1990 1995 2000

FDI inflows

FDIas

%o

fgrossfixedcapitalformation


18/26

0.0

5.0

10.0

15.0

20.0

25.0

30.0

1985 1990 1995 2000


FDIas

%o


FDI inflows


19/26

0.0

5.0

10.0

15.0

20.0

25.0

30.0

1985 1990 1995 2000

Developed countries


FDIas

%o


FDI inflows


20/26


Diversity among MNCs size

the nature of the business

overseas business relative to totalbusiness

production locations

ownership patterns

organisational structure


21/26

Why do Businesses go Multinational?

Categories of multinational organisation horizontally integrated

vertically integrated

conglomerate Advantages to firms

reductions in costs

international differences in factor prices international differences in factor

productivity

low-cost access to local markets

spreading overheads


22/26


Advantages to firms (cont.) government support in host countries

lower taxes

subsidies

provision of infrastructure

increased demand

spreading risks

can exploit advantages over local firms ownership of superior technology

entrepreneurial and managerial skills

R&D capacity

access to local technology


23/26


The product life cycle and the MNC the launch phase

the growth phase

maturity late maturity and decline

Problems facing multinationals

language barriers selling and marketing

relations with host governments

relationships between subsidiaries


24/26

MNC Investment and the Host State

Advantages of MNC investment employment

balance of payments

technology transfer tax revenues

Disadvantages

uncertainty

power and control by the MNC over thehost

transfer pricing

the environment


25/26

MNCs and Developing Countries

The scale of MNC investment indeveloping countries

Advantages to host country

the saving gap

the importance of development finance

the contribution of saving to growth

the foreign exchange gap

public finance gap

skills and technology gaps


26/26

MNCs and Developing Countries

Disadvantages to host country MNCs may drive local firms out of business

limited demand for local components

repatriation of profits transfer pricing and effects on tax revenues

competition between developing countries toattract MNCs

distorting the whole pattern of development increasing gap between rich and poor

introducing consumerist values

What can developing countries do?

Globalisation 111

Documents

Transcript of Globalisation 111

De la globalisation à la territorialisation

Globalisation and its Challenges to Youth: A Gender ... · Youth in Asia Understanding of Globalisation ... CULTURE Globalisation from the bottom Feeling of alienation and living

Exposé ,La Globalisation,Mondialisation,L’Internalisation

· 17915 111 111 111 121 111 9 telttþt 121 111 . 0-0 411 17111 . oo

La globalisation: réalités, idéologies et déclin

Wolf Globalisation

L'approche culturelle de la globalisation

53862096 Globalisation Ppts

Globalisation(2) (1)

Globalisation ppt

L’AMÉNAGEMENT LINGUISTIQUE ET LA GLOBALISATION DES …

€¦ · Mã hoc phân tiên quyêt ML014 ML016 ML018 ML019 Hoc 111 111 111 111 11,111 111 1,11 1, 11 1,11 Näm thú 111 111 111 111 111 111 111 1 1 11 1 11 Cán bê giång Khoa N

Globalisation ppt 2

FOU entre globalisation et localisation.pdf

FICHIER DISCRIMINATION VISUELLE 1 · Les chiffres romains Sur chaque ligne, barre le signe qui n'est pas identique au modèle. VI 111 111 111 111 11 111 11 111

La Suisse est extrêmement globalisée Globalisation

RÉGIONALISATION, GLOBALISATION ET …region-developpement.univ-tln.fr/fr/pdf/R2/R2_Mouhoud.pdf · de globalisation et de régionalisation, qui structurent l'économie mondiale depuis

Globalisation-Pros & Cons

L’école àl’ère de la globalisation

MoserBaer Globalisation