International Business
June 2025
Dr. Hanane ELZEINY
[email protected] What do you expect from an IB course?
Globalization
Chapter Preview
• Describe the process of globalization
• Explain how globalization affects markets
and production
• Identify drivers of globalization
• Summarize the globalization debate
• List types of firms in international business
• Describe the global business environment
Globalization Involves Us All
We experience international
transactions daily
Imports and exports reach
even remote areas
Technology and e-biz
promote trade
Consumers and companies
pull markets closer
Evolution of Globalization
➢ The first age of globalization extended from
the mid-1800s to the 1920s. In those days,
labor was highly mobile, Other than in
wartime, nations did not even require
passports for international travel before
1914. During that first age of globalization,
trade and capital flowed more freely than
ever before
➢ The first age of globalization ended abruptly
with the arrival of the First World War, the
Russian Revolution, and the Great
Depression in the early 1900s.
Evolution of Globalization
➢ A second age of globalization began around
1989 with the collapse of the wall separating
communist
East Berlin and capitalist West Berlin. One by
one, central and eastern European nations
moved away from communism and adopted
democratic institutions and free-market
economic systems.
The drivers of the second age of globalization
include communication satellites, fiber optics,
microchips, and the internet.
Evolution of Globalization
Globalization
Trend toward greater economic, cultural, political
and technological interdependence among national
institutions and economies
Globalization of Globalization of
markets production
Dispersal of production
Convergence in buyer
activities worldwide to
preferences in markets
minimize costs or
around the world
maximize quality
Globalization of production
Globalization of markets
Benefits of Globalization
Globalization Globalization
of markets of production
• Reduces marketing costs • Access lower-cost labor
• New market opportunities • Access technical expertise
• Levels income stream • Access production inputs
Globalization Drivers I
Remove barriers to trade
and investment GATT
WTO
Regional trade
agreements
Globalization Drivers II
Technological Innovation
Email and Internet, intranets, Transportation
videoconferencing and extranets advancements
Better Improved More efficient,
coordination communications dependable
and control and management shipping
Globalization Then and Now
Highly mobile Fear of jobs
labor market moving abroad
Free-flowing
capital and trade
Jobs and Wages
Opponents Supporters
Eliminates jobs in Increases wealth and
developed nations efficiency everywhere
Generates labor market
Lowers wages in
developed nations flexibility in developed
countries
Exploits workers in Advances economies
developing nations of developing nations
Labor, Environment, & Markets
Opponents Supporters
– Globalization lowers + Investment raises
labor standards labor standards
– Weakens protection of + Open economies most
the environment environment friendly
– Exploits workers in + Companies concerned
poor nations for future markets
National Sovereignty
Opponents Supporters
Supranational
Globalization has
institutions reduce
benefited societies by
autonomy of national,
helping to spread
regional, and local
democracy worldwide
governments
Impact on Culture
Opponents Supporters
• Destroys cultural • Specialize and trade
diversity to obtain other goods
• Homogenizes our • Import cultural goods
world from other nations
• Bankrupts local • Protects deeper moral
small businesses and cultural norms
International Business Players
Multinational Small Businesses Born Global
Corporation and Entrepreneurs Firm
Small companies and Adopts a global
Business that has
individuals becoming perspective and
direct investments
increasingly active in engages in international
abroad in multiple
international trade business from or near
countries
and investment its inception
Global Business Environment
Advice of Global Managers
✓ Communicate effectively
✓ Know the customer
✓ Emphasize global awareness
✓ Market effectively
✓ Monitor business environments
✓ Analyze problems correctly
Chapter Review
• https://www.youtube.com/watch?v=3oT
LyPPrZE4
• https://www.youtube.com/watch?v=x1w
LbJoSmR0
• https://www.youtube.com/watch?v=xUY
NB4a8d2U
Assignment 1
Discuss the globalization phenomenon from
different points of view (including yours). Are
we moving toward more globalization?
