GBUS 4500 SP 23 Outline • • • • • Introduction (What you want to get from this course) Course requirements Basic definitions and scope (the world before the pandemic) Globalization where we have been where are we going? The main contemporary issues will evolve around: - New type competition and world order due to the pandemic - MNC Changing role : Opportunities and Challenges - The impact of the ever-changing technological environment - Increasing impact and importance of non-profit motives (Ethics, Culture, CSR, Environment) - Other issues to TBD Subject Activity/HW Due Date 1/17-19 1/24-26 9/15 Introduction Requirements Globalization 1.0-4.0 Globalization, De-globalization, Slowbalization MNC’s Opportunities and Challenges Assignment 1 (videos) Current Event 1 Global Technology environment Global Cultural and Political environment Assignment 2 HR and Talent Issues in global operation Emerging Markets Issues Current Event 2 No Class Spring Break Globalization of sports issues Assignment 3 Global CSR and Sustainability issues Building Global Brands Current Event 3 Globalization and the BOP Assignment 4 TBD Presentations A Current event 4 Presentations B No Class W Schedule Final online 1. Always check for updates and changes on BB 2. The various assignment are due a week after they are assigned on the schedule (also the due date will be indicated on BB) Written reports due 3. Each subject is designed for one-week classes 4. All material you need as well as PPT will be posted on BB before the class) 5. Some meetings might be online. You will be notified ahead of time. 6. No book reading will be posted on BB (show BB structure) Grading Scale Score Grade 940- 1000 A 900 - 939.99 A- 870 – 899.99 B+ 830 – 869.99 B 800 – 829.99 B- 750 – 799.99 C+ 700 – 7499.99 C 0% - 699.99 F Course Requirements and Evaluation The course offers students multiple opportunities to demonstrate their learning. The grading point allocation system is explained below: - Participation and attendance in class (100 points) - 3 Assignments (3X50) (150 points) - 4 Current events (4X50) (200 points) - 2 tests (300 points) - Term paper t and presentation (250 points) ________________________________________________________________________ Total 1000 points - Current event: For each part of the course, Students will choose on their own a relevant current story from business newspapers and magazines and deliver an analysis following a format that will be given in class. - Assignments/readings requirements will be posted on BB GBUS 4500 Current Event Assignment (about 2-3 pgs.) On the assigned weeks you are asked to find a current news story article (subject matter should be the subject covered in class last week if no other instructions are given). The article should be at least 6-8 paragraphs long (2-3pages) and have enough "meat" and details related to the subject matter. It must be current (published in the last 12-18 months) and it must be a business news story rather than an academic article! Read the article to make sure you understand what it is talking about and that it relates to the subject matter given to you by the instructor and write a current event summary following the structure below: Structure of the write up (Total 2-3 pages (double spaced) A. State specifically four concepts you are going to discuss and use and define or explain them upfront. Remember the concepts themselves might not appear in the article “by name.” You are making the connection and using the article to demonstrate a concept. - Concept 1: XXXXXX - Concept 2: YYYYYY - Concept 3 - Concept 4 B. Summary: Write a short summary of the article. C. Now use and connect the concepts to the content of the article- Explain and show how this article is related to the five concepts you specified in A (highlight or bold the concepts it doesn’t have to be in the order you listed them). This is the most important part so make sure you are connecting the concepts to the article D. Your impression/opinion: Write your opinion on the article. Here you can write about things like: - What did you think about the article? If the article made you feel a certain way or change your mind about something share it here. - Do you agree / disagree with what is being said and why? - Did you learn something new? What is it? - Are you more informed about what is going on in the global market? Attached your homework to the relevant assignment on BB (don’t e-mail to me or bring a hard copy to class) Don’t forget to attach the article (copy) or a link to it. E. Be ready to present and discuss your CE Team Carter, Barbara S. A Christiano, James V. B Civantos Mota, Daniel C Conlan, Craig A. D De la O Sarabia, Angel E Del Castillo, Ashley S. E Li, Ruiting E McLafferty, Lizbeth Z. D Tan, Glynnis M. C Tlatenco, Abril B Yang, Amy A Literature Review Topics - Identify your partner and exchange phones and e-mail - By next week, each pair must email me the 3 topics they want (1, 2, 3). I will choose one of them for you. The sooner you do it the better is your chance to get your # 1 topic. Topics for the term paper and presentation 1. The Metaverse impact on business and globalization 2. Will the Covid-19 crisis slow or accelerate globalization? 3. Are we moving towards a global culture or increase in nationalism and protectionism? 4. Will China surpass the US as the global leading economic power? 5. Is Africa: Land of promise or of peril for MNC’s? 6. Will emerging market MNC’s become real competitors to the developed world MNCs? 7. What role emerging market will play in the future (Are certain countries doomed to remain emerging?) 8. Is MNC increase involvement CSR genuine or just another marketing ploy (and does it really matter?) 9. Should MNC’s (e.g., Coca Cola, Visa, Nike….) support the Global sport events (like the Olympic in China) when the host country is engaged in human rights violation (or any other violation). 10. Is Global Climate change as bad as it is advanced by some governments (described and how it might impact globalization). 11. Are MNC’s villains (exploiting the foreign markets) or saviors (advancing the economic conditions)? 12. Are regional trade blocks still a viable and instrumental in advancing international businesses (EU, NAFTA…..) 13. The promise and peril for MNC focused on the “Bottom of the Pyramid” 14. Can “Born Global” companies become the next giants in the global markets. 15. Is Cross Border M&A a viable strategy for international growth (problems and opportunities) 16. Globalization and Human rights violation (Does globalization cause increase or decrease in human rights violation) 17. Does Globalization reduce poverty or just make the rich richer? 18. Supply Chain Management in Globalization Era pre and post pandemic. 19. The Russian Ukraine conflict impact on international trade and globalization. 20. Human Resources Management and How It Is Affected by Globalization and Technology? Globalization- Definitions (Business) The process by which businesses or other organizations develop international influence or start operating on an international scale. (Company focused) The Process of social, political, economic, cultural, and technological integration among countries around the world. (Focused on components) ● Economic (business)"globalization" is a historical process, the result of human innovation and technological progress. It refers to the increasing integration of economies around the world, particularly through the movement of goods, services, and capital across borders. (focus on international trade and its development) From Around 1500 To Around 1900 What do you think this is showing? Yes! this is a part of what we call 2010 Globalization Process The Stages of Globalization (From Thomas Friedman in The World is Flat) Globalization 0.0 Ancient Empires: China, Rome, Globalization 1.0 (from 1492 to 1800) – Countries, force Globalization 2.0 (from 1800 to 1950) - Imperialism Globalization 3.0 (from 1950 to 2010)- MNCs Globalization 3.5 2010 2020 - Entrepreneurs, small business Globalization 4.0 (Post pandemic)?2020--??? Globalization 1.0 • Mainly European countries • • are globalizing Power is the primary driver Slow pace of change Through exploration (mainly by sea), imperialism, and colonialism the focus was on countries gaining power through controlling natural resources and the accesses to them (by ground and sea) 2-13 Globalization 1.0 1492 to early 1800’s World shrunk from “large to medium” Through exploration, colonialism the focus was on countries and how they “flattened the world” for their own benefits. Developing of trade routes and partners Army and or power was the main mean of forcing integration Globalization 2.0 • Large companies-Trade • organization supported by government (or own by government) are leading globalization Reduction in transportation and telecommunications costs Mainly Europe and American large companies are involved. The era of imperialism(e.g British empire) Dutch East India Company , British East India Company 2-15 Globalization 2.0 1800 to 1950 (The Industrial Revolution) World shrunk from “medium to small” Focus was on large companies many times owned by states/government “flattening” the world through market and economic means The Industrial revolution search mainly for sources of cheap raw material Some initial outsourcing: Subcontracting or contracting out of activities to external locations instead of in their countries of origin (2.0) Globalization 3.0- Emergence of the giant MNCs • MNC (non government) become powerful and leading the process. • Governments(countries) are playing only a supporting role. • Competitive advantage through smart and rapid expansion and deployment of the required resources. 3.5?? – Emerging of small business, Global entepenurship and the growing role of emerging markets. 2-17 The Waves of Globalization 2-18 Globalization • It is an ongoing process • The process is not new and has evolved (and continue to do so). • The process is not a theoretical concept but has significant impact on our daily life (how?) • The process is more than just an economic process • The process has ups and downs, but it is moving forward (really) • The outcome of the process raises many questions/issues. The main issues or debates are: • Level: Are we really globalized? (your first assignment) • Impact: Does the process have more positive or negative impact • What is next: Is the process dead (in particular in light of the pandemic) • What roles MNC, Governments and International Organization play in the process) Components of Globalization? Economic globalization (Free market, International trade, eliminating poverty….) Political globalization Cultural globalization Technological Globalization What is economic globalization? • Economic globalization is the process of an increasing integration of economies around the world, particularly through trade and financial flows and the movement of people (labor) and information across international borders. It should result in the improved economic conditions (e.g., less poverty) 21 Economic Globalization 2000-2018 Q. Economic Globalization? What is Cultural Globalization? ● Cultural globalization refers to the transmission of ideas, meanings and values across world space and the adoption of these values. ● Not all good practices and norms were born in one civilization. The world that we live in today is a result of several cultures coming together. ● People of one culture, if receptive, tend to see the flaws in their culture and pick up values that are more appropriate for the times. ● Many current societies have become larger as they have welcomed people of other civilizations and backgrounds and created a whole new culture of their own. Examples of Cultural Globalization ● Similar cooking styles, languages, and customs have spread all due to globalization. The same can be said about movies, musical styles, and other art forms. ● Globalization has made us more conscious and tolerant of other's lifestyles and beliefs. ● Multinational corporations promote the same product all over the world, encouraging a similar lifestyle throughout the world (“Cola-Colinization”, McDonalization…) ● “Cultural imperialism”= Western Ideals are established as universal ways and traditions. ● Country's’ traditional foods lost to big fast-food chains ● Traditional clothing lost to big clothing brands Political Globalization Political globalization involves the growing number of cooperative forms – international treaties, intergovernmental organizations, etc. These cooperative forms level the playing field among nation-states. The transformation of a variety of political systems to a similar system (e.g., democracy, social democracy, totalitarian…) UN Who Q: Is there a Global Culture? 1. 2. 3. 4. Decline of nationalism. Growing universal language: English Universal Market of popular culture: entertainment, the Internet, food, etc. Globalization does not destroy local cultures, though it may influence them. Q: Is there a Global Political trend? 1. Likely continuing growth of a democratic culture. 2. Over 120 democracies today, including over ½ of the world’s population. Most of these were “created” in the last 30 years and are based on free market (capitalist economies) - Is the globalization process beneficial? - How really globalize is the world? (Is the world really flat?)- Your assignment - What is the impact of the pandemic on globalization? (focus of next class) Q: Is the process beneficial? Globalizers (Integrationists) 1. 2. 3. 4. : Yes! Increased integration has brought a higher volume of trade. This means more goods and services for most of the world. Increased GDPs and overall standard of living for those that participate Globalization has not increased income inequality (as many skeptics claim). Globalization has reduced poverty, but not everywhere. About 2 billion people have been left out of the globalization process. Globalization Winners and Losers 2-29 2-30 Globalization- Good Bad or Ugly? The good, the bad and the ugly… Categorise these impacts of globalisation into positive and negative Globalization- Good Bad or Ugly? The good, the bad and the ugly… • Spread of wealth •Reduction in consumer prices • Cultural diversity • Greater freedoms • Wider choices •Growth of international political groups ie EU •Trade barriers removed – tarrifs / quotas •Global skills transfer •Increasingly cheaper phone and interweb • The rich are getting richer… •LIC’s forced to reduce costs • Loss of cultural identities • Migration issues •Media control over population •Loss of national identities •Brain Drain from LICS • …as the poor are getting poorer •Working conditions very poor •Racism •Environmental costs of globalisation •Labour is all people have to sell… and now it’s very cheap Globalization: Pros and Cons • Benefits of Globalization Wealth Jobs Technology Lower prices Availability of goods • Criticisms of Globalization Off-shoring of business service jobs to lower-wage countries Growing trade deficits Slow wage growth Environmental and social impacts Too much power to MNC’s https://www.youtube.com/watch?v=KPNn880KWfU Globalization(1.0, 2.0, 3.0) Accelerators (4.0???) 2-34 Globalization 4.0 ? (Davos 2019) Globalization 4.0: “… a new wave of globalization is once again upon us. In a world increasingly dominated by two global powers, the US and China, the new frontier of globalization is the cyber world. The digital economy, in its infancy during the third wave of globalization, is now becoming a force to reckon with through e-commerce, digital services, 3D printing. At the same time, a negative globalization is expanding too, through the global effect of climate change. Pollution in one part of the world leads to extreme weather events in another. And the cutting of forests in the few “green lungs” the world has left, like the Amazon rainforest, has a further devastating effect on not just the world’s biodiversity. Also, it is easily disrupted and but threatened by cross-border hacking and cyberattacks. “Chances are good that Dr. Bhavya in Bangalore will read your next x-ray, or ‘Grandma Betty in her bathrobe’ will make your Jet Blue plane reservation from her Salt Lake City home. In ‘Globalization 4.0,’ entrepreneurs and small startups from far-flung places around the globe will become principal players in the continuation of the globalization. https://www.tedxlausanne.com/talks/richard-baldwin/ 2-35
