Global Business Today: Asia-Pacific Perspective 5th edition by Charles W. L. Hill Solution manual

 
Domestic companies large and small are not immune to the forces of globalisation. This was evident following the domestic fallout on interest rates and credit availability flowing from the 2007–09 GFC (as a result of the global integration of financial markets), the global credit crisis and current global debt woes. The increase in global competition flowing from electronic business via the internet is another factor both large and small domestic companies need to manage going forward.
 

IBGA5: Communication

3. As a group, develop a two-sentence (maximum) definition of ‘globalisation’. As a starting point to your discussion, consider the following notions.
 
- Does globalisation simply mean internationalisation—the increase in cross-border trade, investment and migration?
- Does it mean liberalisation—the gradual removal of government-imposed restrictions on cross-border exchange?
- Or universalisation—as ideas spread around the world, do people’s aspirations and experiences become harmonised?
- Or Westernisation—the destruction of local identity and self-determination as capitalism, consumerism and industrialism spreads over the world?
- Or de-territorialisation—distance and territorial borders grow less significant and the world is conceived as a single place, as exemplified in such aspects as communications over the World Wide Web, multinational organisations, global products, foreign currency exchanges, climate change and religious affiliations?
 
These different concepts are drawn from J. Scholte, ‘Defining globalisation’, World Economy, 31(11) (November 2008). After the discussion and the task are completed, reflect on the behaviours in the group that facilitated the discussion and task completion.
 
Globalisation refers to a fundamental shift that is occurring in the world economy.
There is a move from ‘isolation’ and ‘independence’, to ‘integration’ and ‘interdependence’.
This trend is commonly referred to as globalisation.
 
The benefits for businesses are the opportunity to expand their revenues, drive down their costs, and boost their profits. Previously ‘closed’ foreign markets are now ‘open for business.’ By producing more for less, it can help achieve further costs savings through the ‘economies of scale’ principle.
 
Globalisation has also created difficulties for business organisations. For example, issues related to entry and exit, as well as the motive and means, are first considerations. Second, should companies export, build a plant in a foreign country, or modify their products to suit the tastes of each of their foreign customers? How companies in the domestic market respond to foreign competition are additional issues that might come to light.  Difficult questions such as these will be canvassed and answered throughout the unit in global business.
 
4. Write a brief report, including suitable graphs and tables, that examines the rise of China and India in the global economy since 1970. Accessing data from organisations such as the OECD and the World Bank, particularly World Development Indicators, may prove a useful starting point.
 
Answer guide: For trade statistics, see the databases of the World Trade Organization (www.wto.org); for foreign exchange statistics, see the Bank of International Settlements (www.bis.org).
 
China holds huge potential for aviation manufacturers. UNCTAD’s World Investment Report 2012 (www.unctad-docs.org/files/UNCTAD-WIR2012-Chapter-I-en.pdf) is facilitative in this regard.
 
See also the World Bank’s Projects and Operations 2012 (www.worldbank.org/projects).
 
The 2013 edition of World Development Indicators (WDI) includes a snapshot of near-historical data on global development, poverty, quality of life, the environment, the economy, the functioning of states and markets, and global links between finance, trade and migration. Tools to access, explore and interact with the WDI are available at http://data.worldbank.org/wdi, and include:
 

• the World Bank’s main data website (http://data.worldbank.org)
• new tables (http://wdi.worldbank.org/tables)
• a free application (DataFinder) for tablets and mobile devices (