CBA Exam 1 Review
Globalization
shift toward a more integrated and interdependent world economy
Globalization of Markets
merging of historically distinct and separate national markets into one huge
global marketplace
Globalization of Production:
sourcing of goods and services from locations around the globe to take
advantage of national differences in the cost and quality of factors of
production.. Factors of Production = land, labor, capital, and energy
Robert Reich
"global products"
Pillars of Globalization
Cost reductions (cost is an attractiveness to go global)
Market expansion
Exploitation of smaller companies
Starbucks, ethical production, on coffee bean bags in store
They see large foreign countries being exploited by companies expand to
those countries
Free trade leads to less labor exploitation and less pollution
Harvard business paper - 5 benefits
Understand macroeconomics - awareness of the dynamics of
macroeconomics
, An appreciation for different cultures
Navigate the opportunities and challenges of international politics in
business
Learn from others triumphs and mistakes
Craft winning business strategies
Does a country's culture have an effect on corporate culture?
True
Does politics interfere with international business?
True
Market Expansion Examples
Starbucks failed in Australia(grew too fast and non culture research) and
Italy(coffee connoisseurs)
However, they opened more stores again are succeeding
Target failed miserably to expand to Canada, too fast and not enough
research
What's the consequence of sovereignty?
you, the country, culture, systems, what defines a country, you as a country
determine your own fate
Ex: Russia invading Ukraine, did Russia invade their sovereignty? Yes
The nature, the purpose of a company, the determination of the future
Concept of nation sovereignty, to be self-sufficient, the identity of a country,
values, cultures, traditions, etc.
Every country is sovereignty
Customs
Culture
Globalization
shift toward a more integrated and interdependent world economy
Globalization of Markets
merging of historically distinct and separate national markets into one huge
global marketplace
Globalization of Production:
sourcing of goods and services from locations around the globe to take
advantage of national differences in the cost and quality of factors of
production.. Factors of Production = land, labor, capital, and energy
Robert Reich
"global products"
Pillars of Globalization
Cost reductions (cost is an attractiveness to go global)
Market expansion
Exploitation of smaller companies
Starbucks, ethical production, on coffee bean bags in store
They see large foreign countries being exploited by companies expand to
those countries
Free trade leads to less labor exploitation and less pollution
Harvard business paper - 5 benefits
Understand macroeconomics - awareness of the dynamics of
macroeconomics
, An appreciation for different cultures
Navigate the opportunities and challenges of international politics in
business
Learn from others triumphs and mistakes
Craft winning business strategies
Does a country's culture have an effect on corporate culture?
True
Does politics interfere with international business?
True
Market Expansion Examples
Starbucks failed in Australia(grew too fast and non culture research) and
Italy(coffee connoisseurs)
However, they opened more stores again are succeeding
Target failed miserably to expand to Canada, too fast and not enough
research
What's the consequence of sovereignty?
you, the country, culture, systems, what defines a country, you as a country
determine your own fate
Ex: Russia invading Ukraine, did Russia invade their sovereignty? Yes
The nature, the purpose of a company, the determination of the future
Concept of nation sovereignty, to be self-sufficient, the identity of a country,
values, cultures, traditions, etc.
Every country is sovereignty
Customs
Culture
