IBUS1101 Lecture Notes - Lecture 2: Sweatshop, World Trade Organization, Liberal Democracy
27 Jul 2018
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Document Summary
Lecture 2 (15/3/18) globalisation of markets and internalisation of the firm. Market globalisation the growing interconnectedness of national economies and the growing interdependence of buyers, producers, suppliers, and governments around the world. Key drivers of market globalisation: worldwide reduction of barriers to trade and investment facilitated by world. Economic cooperation, asean- association of se asian nations, eu- 28 countries); but. Brexit: growth of global investment and financial flows associated with rapid growth of. Internationalisation of value chain: configures sourcing/manufacturing/marketing/value-adding activities on increasingly global scale, rationale, cost savings. Increase efficiency/productivity/flexibility of value chain activities: access to customers, benefit from foreign partner capabilities. Global connectedness not as extensive in practice as perceived. Regional/national contexts complex distance matters: cultural language, religion, norms/values, administrative/institutional/political regulations, taxation, currency, political differences (state vs market capitalism, geographical location, economic differences (size of economy) Factory workers die from dangerous working conditions: e. g.
