MGMT 110 Lecture Notes - Lecture 11: Global Brain, International Trade, Global Rights
Week 11: Managing Globalisation
Learning Objectives
- After completing this topic, you should be able to:
o Debate the impact of globalisation, especially on organisations
o Identify some key strategic issues involved in managing in a global economy
o Explain why resistance to globalisation occurs
o Understand that globalisation has both positive and negative effects on individuals,
organisations, societies, and nations
What is the Globalisation Phenomenon?
- According to Clegg et al 2016, globalisation means:
o The worldwide integration in virtually every sphere achieved principally through markets
o A process whereby the world becomes more interconnected and the fates of those people and
organisations in it become more intertwined.
o In business terms, globalization means business without frontiers, crossing national
boundaries, and dealing with the world, not just the home base
Dimensions of Globalisation
- Economic
o Global trade
o World financial markets
o Multinationals
o Networking
o International trade and business
o New labour markets
o New development cooperation
- Political
o Human rights
o International terrorism
o War and new security problems
o IP rights
o Trade blocs (EU, NAFTA, ASEAN)
- Ecological
o Sustainability
o Use of common resources and legislation
- Cultural
o Society of different identities (local, political, gender, family, religion national, individual,
and social)
Characteristics of Globalisation
- Globalization has a technical core, which is organized in terms of flows of inputs, global
distribution, transformation, and outputs, organised through global supply chains
Why Globalisation?
- Economies of scale in production
- National differences in availability and cost resources
- Economies of scope in marketing and distribution
How does Corporate Globalisation Work?
- Globalisation is marked by:
o The integration of deregulated markets and technology and facilitated by
telecommunications and ease of transport
o Transnational or multinational organizations that extend beyond national space in their
routine activities, and exert control through ownership and/or through the coordination
and control of operations
Flows of Finance: Financialization
- Financialization means:
o The pervasive influence of financial calculations and judgments
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Document Summary
Economic: global trade, world financial markets, multinationals, networking, international trade and business, new labour markets, new development cooperation. Political: human rights, international terrorism, war and new security problems, ip rights, trade blocs (eu, nafta, asean) Ecological: sustainability, use of common resources and legislation. Cultural: society of different identities (local, political, gender, family, religion national, individual, and social) Globalization has a technical core, which is organized in terms of flows of inputs, global distribution, transformation, and outputs, organised through global supply chains. National differences in availability and cost resources. Economies of scope in marketing and distribution. Financialization means: the pervasive influence of financial calculations and judgments, applied to everyday organisational life, it means the way that financial calculations now constitute the primary criteria of value, even for mundane objects, practices, and processes. Other globalising factors: global financial systems, global strategic alliances, mergers and acquisitions, different institutional systems.
