[국제경영론] Globalization_세계화, global economy, drivers of globalization

국제경영론 International Business

Chapter. Globalization (1) 

• globalization : refers to the trend towards a more integrated global economic system

global economy 의 globalization 변화

• self-contained national economies with high barriers ⇒ more integrated global economic system, lower barriers to cross-border trade and investment
• this transformation = globalization Today, benefits of globalization are more in dispute than at any time in the last half century.

• effect of globalization trend는 cars, food, jobs, clothes 등 여러 곳에서 나타나고 있음
  • globalization of markets
    • merging of historically distinct, separate national markets into one huge global marketplace
    • tastes and preferences of consumers in different nations are converging upon global norm EX of this trend: coca cola, starbucks, ikea, mcdonald’s → starbucks around the world
  • globalization of production
    • sourcing of goods, services from locations around the globe (전세계 각지에서 소싱) to take advantage of national differences in cost & quality of production (labor energy, land)
    • the goal for company : lower overall cost structure or improve quality or functionality of their product and gain competitive advantage EX of company doing this : boeing, dell → dell은 미국 캐나다 호주 한국 일본 유럽 등 세계를 참여시켜 dreamliner 787 항공기를 제작함

 

emergence of global institution

• help manage, regulate, police the global market place
• promote the establishment of multinational treaties to govern the global business system
• WTO world trade organization
  • is responsible for policing the world trainding system and ensuring that nations adhere to the rules established in WTO treaties
  • 164 nations accounting for 98% of world trade are members of WTO (98%를 차지하는 164개국이 회원국임)
• IMF international monetary fund
  • maintains order in the international monetary system 국제 통화시스템 질서 유지
  • lender of last resort, requires nation states to adopt specific economic policies in return for loans
• world bank
  • promotes economic development using low interest loans, less controversial than IMF
• UN united nations
  • includes 193 member countries
  • committed to maintaining international pease and security on basis of UN charter (유엔 헌장에 의거하여)
  • develops friendly relations among nations, promotes cooperation in solving international problems
  • promotes respect for human right, center for harmonizing the actions of nations
• G20 gropd of twenty
  • 구성: finance ministers and contral bank governors of the 19 largest world economies + EU and european central bank
  • represents 90% of global GDP
  • became a forum from a coordinated policy response to the financial crisis of 2008 and 2009

 

drivers of globalization

• what is driving the move toward greater globalization? : two macro factors underlying the trand
• declining trade and investment barriers
  • During the 1920s and 1930s, many nations erected barriers to international trade and FDI to protect domestic industries from foreign competition
  • After WWII, advanced Western countries began removingtradeandinvestment barriers
  • Under the WTO, over 160 nations negotiated further decreases in tariffs and made significant progress on a number of non-tariff issues
  • Average Tariff Rates on ManufacturedProducts as Percentage of Value 제조품의 평균 관세율
  • Lower trade barriers enable companies to view the world as a single market and establish production activities in optimal locations around the globe
  • This has led to an acceleration in the volume of world trade and investment since the early 1980s
• technological change
  • The Role of Technological Change
    • The lowering of trade barriers made globalization of markets and production a theoretical possibility; technological change made it a tangible reality
    • Since World WarII,there have been major advances in communication, information processing, and transportation
    • The development of the microprocessor has lowered the cost of global communication and therefore the cost of coordinating and controlling a global organization
    • Internet usage is up from fewer than 1 million users in 1990 to over 4.5 billion users in 2020
    • Reduces constraints of location,scale, and time zones
    • Commercial jet aircraft and the introduction of containerization have greatly simplified trans-shipment from one mode of transport to another