The shift toward a more integrated and interdependent world economy. The world is moving away from self-contained national economies toward an interdependent, integrated global economic system
Globalization of Markets
Falling trade barriers make it easier to sell globally consumers' tastes and preferences are converging on some global norm. Firms promote the trend by offering the same basic products worldwide. Firms of all sizes benefit and contribute to the globalization of markets. 97% of all U.S. exporters have less than 500 employees. 98% of all small and mid-sized German companies participate in international markets.
Globalization of Production
Firms source goods and services from locations around the globe to capitalize on national differences in the cost and quality of factors of production like land, labor, energy, and capital. Companies can lower their overall cost structure improve the quality or functionality of their product offering.
Help manage, regulate, and police the global marketplace promote the establishment of multinational treaties to govern the global business system
ex. UN, GATT, WTO
World Trade Organization [Global Institution]
- Polices the world trading system - Makes sure that nation-states adhere to the rules laid down in trade treaties - Promotes lower barriers to trade and investment - 154 members in 2011
International Monetary Fund [Global Institution]
- Maintains order in the international monetary system lender of last resort for countries in crisis - Argentina, Indonesia, Mexico, Russia, South Korea, Thailand, Turkey, Ireland, and Greece
United Stations [Global Institution]
- Maintains international peace and security - Develops friendly relations among nations - Cooperates in solving international problems and in promoting respect for human rights - Is a center for harmonizing the actions of nations
Any business that has productive activities in two or more countries. Has existed since the 1960s. The number of non-U.S. multinationals has risen. The number of mini-multinationals has risen.
YOU MIGHT ALSO LIKE...
Series 7 Top-Off Exam Preparation | Knopman Marks Guide