Globalization in International Management

Globalization in International Management

• Globalization involves global competition through international connections that link countries and institutions.
• It includes reducing barriers to international trade to foster economic integration.
• Cross-border trade agreements play a significant role in promoting globalization.

Factors Driving Globalization

• Cross-border trade agreements are a major contributor to the surge in globalization.
• Technology advancements in communication and transportation have decreased barriers, promoting global commerce.

Supranational Institutions

• The United Nations influences globalization through policies like intellectual property protections, exemplified in initiatives affecting countries like China.

Challenges to Globalism

• Protectionism, particularly regarding high-demand resources, poses a challenge to the principles of globalism.
• Issues such as rising nationalism can hinder international cooperation and trade.

Regional Trading Blocs

• Defined as groups of countries that collaborate to protect themselves from non-member goods, facilitating economic cooperation.
• Not classified as military alliances or cultural unions, but could include economic unions or political unions.

Types of Regional Trade Blocs

• Common forms include Free Trade Areas, Economic and Monetary Unions, but cultural unions do not qualify.

Globalization of Human Capital

• Refers to the growing demand for skilled workers at reduced costs in multinational companies.
• It emphasizes the movement of talent and expertise across borders rather than mere outsourcing.

Legal Systems in International Management

• Types of legal systems encompass Common law, Civil law, and Islamic law, with Religious law not typically included in formal discussions.
• Common law operates on the premise that promises will be upheld without extensive detail.

Moral Universalism

• Suggests a single moral standard should apply to all cultures, advocating for ethical consistency in international contexts.

Ethnocentrism in International Management

• Represents the belief that one's own cultural practices are superior to those of other countries, potentially leading to conflicts in international operations.

Anti-Sweatshop Code of Conduct

• Established by President Clinton, this code includes prohibitions against forced labor, discrimination, and abuse, aiming to improve labor conditions globally.

International Codes of Conduct

• Organizations like the International Chamber of Commerce provide guidelines for multinational enterprises, promoting ethical business practices across borders.

Bribery Defined

• Bribery involves giving or receiving something of value with the intent to influence someone illegally, distinct from customary business practices or appreciation gifts.

Costs Imposed by Multinational Corporations

• MNCs may bring costs to host countries such as increased resource demands or economic shifts, though they can also create jobs and improve infrastructure.

Nationalism in International Management

• Represents the public support for national objectives, often leading to resistance against foreign influences in the economy and public policy.

Understanding Protectionism

• Protectionism is the practice of utilizing tariffs and non-tariff barriers to limit foreign competition and safeguard domestic industries.