Globalization and Value Chains Quiz

Course Overview

• Form groups of 4-5 for presentations.
• Additional classes may be scheduled for support throughout the semester.
• Quizzes will be conducted online.
• Contact email: [email protected].

System Evaluation

• Case presentations account for 20% of the final grade; 20-minute explanation required.
• Submit a PDF of the presentation on Canvas afterward.
• In-class homework contributes 15% to the grade, with a focus on DRS Chapter 1 in groups.

Definition and Aspects of Globalization

• Globalization involves deepening interdependence among nations and removing barriers for goods, services, and people.
• Examples include global supply chains for fruits, vegetables, and gasoline.

Value Chain and Global Production

• Value chains encompass all stages of producing a product, from design to delivery.
• An airplane comprises around six million components from various countries and takes roughly four months to assemble.

Case Studies

• iPhone’s components are sourced globally, primarily assembled in China due to lower costs but facing risks like labor exploitation and supply chain disruptions during crises.

Factors Driving Globalization

• Technology: Innovations enhance communication and transportation, enabling rapid movement and interaction globally (e.g., internet, mobile phones).
• Trade Liberalization: Aimed at creating competitive advantages with free trade agreements and currency exchange.
• Consumer Pressure: Elevated purchasing power and information availability raise consumer expectations tied to human development indices.
• Global Competition: Companies face increased competition, prompting rapid internationalization, especially among internet-based businesses.

Cultural Dimensions in International Business

• Edward T. Hall's Proxemics: Understanding physical space and its social implications varies between cultures.
• Monochronic vs. Polychronic Time: Cultures perceive and prioritize time differently, affecting task management.
• High vs. Low Context: Communication styles differ; low-context cultures favor explicit words while high-context cultures value implicit cues.

Geert Hofstede's Cultural Dimensions

• Power Distance: Hierarchical structures determine acceptance of inequality.
• Individualism vs. Collectivism: Varies by culture on social group integration.
• Masculinity vs. Femininity: Differentiates roles based on gender preferences for achievement vs. quality of life.
• Uncertainty Avoidance: Highlights cultures' tolerance levels for ambiguity.
• Long vs. Short Orientation: Focus on time outlook influences decision-making.
• Indulgence vs. Restraint: Relates to how cultures manage leisure and gratification.

Cultural Dynamics and Change

• Cultural transformations occur through choice or imposition (e.g., colonial influence).
• Acceptance of foreign cultural elements depends on cultural openness and differences.

Value Chain Strategies

• Concentration: Focus all activities in one market for efficiency and cost-saving (e.g., McDonald's).
• Dispersion: Utilize various countries for different production needs (e.g., Apple).

International Corporate-Level Strategies

• Balancing global integration with local responsiveness is crucial.
• Outlines how headquarters and subsidiaries function cohesively towards corporate objectives.

Country Selection and Entry Strategies

• Companies often assess market saturation within a country and seek new operational locations.
• Important factors include logistics for sales, production planning, and resource allocation for new markets.
• Marketing Analysis Procedure: Initial scanning involves basic yes/no responses to gauge market viability.

Test your knowledge on globalization and its impact on value chains with this quiz. Explore definitions, aspects, and real-world examples, including case studies of products like the iPhone. Prepare to demonstrate your understanding of these crucial economic concepts.