Globalization

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Definition Globalization?

Globalization is the broad process of global integration, interconnectedness and interdependence of international business, economic activities, societies and cultures. It includes an increase of international:

• Trade and competition
• Production and industrial markets
• Products and services
• Migration, labor force movement and job markets
• Investments and financial markets
• Technology usage and R&D
• Legislation and justice
• Exchange of ideas, information and knowledge
• Lifestyles and cultures
• Politics and political structures

types of Globalization. Dimensions

In a 1996 AMR article Taylor, Beecheler and Napiet distinguish 3 globalization dimensions:

1. Globalization of Production: encouraged by the cost advantages that can be won by establishing an international production network.
2. Globalization of Products: favored by the significant rise in costs generated through the constant need to present ever-newer products.
3. Globalization of Markets: access to more and more foreign markets since the fall of international trade barriers, creating new opportunities as well as stiffening competition.

Other major dimensions that can be distinguished are:

4. Globalization of Services
5. Globalization of Labor, work, people and talent
6. Globalization of the Financial System, banking and insurance
7. Globalization of Information, knowledge

Reasons for globalization. Causes

This increasing world-wide integration of markets for goods, services, labor and capital is caused by developments in:

• Modern communication technology (TV, Internet, Google, social networks, mobile phones).
• Transport mechanisms.
• Freer international capital flows.
• Changes in economic, cultural, political, social, and legal systems.

Debates on Globalization. Opinions and Conflicts

An important consequence of globalization on businesses is the increased power that multinational organizations have. This in turn has led to an increased call for Corporate Transparency, Corporate Accountability, Corporate Responsibility, Stakeholder Management and Shared Value. A number of paradoxes are relevant:

1. New Era vs. Business as Usual: Is G. a new global age, or is there really nothing new under the sun and will governments and regions retain distinct strengths?

2. Autonomous Process vs. Intentional Project: Is G. an unintended process, or is G. a deliberate, ideological project of economic liberalization?

3. Hard vs. Soft: Is G. caused by the pursuit of material interests or is G. rooted in an expanding consciousness of living together on one planet?

4. Good vs. Bad: Is G. to be celebrated because of product progress, better democracy, empowering of people, or is G. dangerous because of its consequences for the well-being of various groups, the sovereignty and identity of countries, the disparities among peoples, and the health of the environment?

5. Global Sameness vs. New Differences: Does G. lead to cultural homogeneity, or will G. lead to new mixtures of cultures and is integration likely to provoke a defense of tradition?

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Courses about Globalization. Beginners Course Advanced Course Course for Experts

Best Practices The best, top-rated topics about Globalization. Here you will find the most valuable ideas and practical suggestions. 🥇 7 Myths about Business Globalization According to Subramanian Rangan in Mastering Strategy, there are 7 myths or misconceptions about (business) globalization: 1. Any company with money can go global (you have to study foreign markets b... 29   21 comments 🥈 Globalisation of Labour Hello, I am looking for the meaning of 'globalisation of labour'... Is its meaning that people can increasingly work in any country of their choice? Thanks...... 26   1 comments 🥉 Disadvantages and Negative Consequences of Globalization. CONs What are the main disadvantages and negative consequences caused by globalization?... 24   6 comments Global Tax on Wealth (Piketty) Globalization has many economical and even social benefits, but also has its downsides. Like exploitation of labour, making the rich richer and multinational corporations increasingly influencing poli... 23   37 comments Is Globalization Ethical? We speak a lot about ethics. Now, if we are asked whether globalization is ethical, what should be our answer? It had benefits as well as disadvantages as many domestic players are ruined by the fore... 15   10 comments Cultural Globalization What is cultural globalization?... 14   7 comments Globalization Forces What are the main forces and influencing changes behind globalization?... 13   4 comments What Leadership Qualities are Required in Global Firms? Bishop (2013) argues that in our global and dynamic world, leaders of international organizations require five elements or characteristics to successfully lead their organizations in today’s global en... 11   15 comments History of Globalization? Who can give an overview of the history of globalization... thanks...... 10   3 comments International Marketing Strategy: Standardization, Adaptation or Integration? Globalization and openness of international markets have made companies seek to internationalize their activities as a way to remain competitive and obtain their share of international markets. Theref... 9   Globalization in Higher Education We are thinking about globalization/glocalisation from an industry point of view (manufacturing and services). But we are very slow in the education industry to implement this paradigm shift, especial... 9   22 comments Barriers to Globalization. Obstacles I'd like to have your ideas on what are the major hindrances to globalization? Thank you...... 5   3 comments

Expert Tips Advanced insights about Globalization. Here you will find professional advices by experts. Consultancy Tips Teaching Tips Practical Implementation Tips Nationalism and Patriotism in Corporate Brand Communication Strategies Corporate Branding, Corporate Reputation, Corporate Nationality, Corporate Patriotism, Corporate Nationalism Past research in market communication revealed that many consumers prefer to purchase domestic brands because they want ... How to Design a Large CSR Program that Works CSR, Shared Value, Public-Private Partnerships, Poverty Reduction, Combating Global Inequality A study by Kaplan, Serafeim & Tugendhat (2018) finds that most corporate social responsibility (CSR) programs they analy... Going Global: Adaptation of Marketing Mix Components Marketing Strategy, Global Marketing, International Marketing, Marketing Mix, 4Ps As we all know, companies that conduct business internationally are often adapting their products to the markets served.... Three Dimensions in How Global Brands are Evaluated by Consumers Global Branding, Corporate Reputation, CSR, Globalization Holt et al. (2004) researched how people evaluate and value global brands. They found out that 3 main characteristics ar... Three Perspectives on Globalization Teaching Globalization, Discussion In the book “Introducing Globalization: Analysis and Readings”, three different and competing perspectives on the concep...

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Compare with: Cultural Dimensions  |  Cultural Intelligence  |  Competitive Environment  |  Macro-Environment  |  Economies of Scale  |  Emerging Markets  |  Nationalization  |  PEST Analysis  |  Bottom of the Pyramid  |  Glocalization  |  Diversity Management

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