Negocios I - Primavera 2024 Clase 1

Questions and Answers

What is the value chain?

A series of consecutive steps that go into the creation of a finished product, identifying each step where value is added from initial design to customer delivery.

What is globalization?

The widening and deepening of interdependent relationships among people from different nations, eliminating barriers to international movements of goods, services, capital, technology, and people, influencing the integration of world economies.

Which of the following is a factor that leads to globalization?

Protectionism in trade

Increased isolationism

Decline of communication

Rise and application of technology (correct)

Free trade agreements create competitive advantages.

True Signup and view all the answers

How does rising consumer pressure affect globalization?

It leads to higher expectations among consumers, prompting improvements in products and services. Signup and view all the answers

What is an example of a born global firm?

Spotify Signup and view all the answers

Study Notes

Course Overview

Groups of 4-5 required for presentations.
Additional classes may be scheduled to address challenges during the semester.
Quizzes conducted online.
Contact email for queries: [email protected].

System Evaluation

Case Presentations (20%)
- Each group presents a case to the class.
- Duration: 20 minutes.
- Post-presentation, a PDF must be uploaded to Canvas.
In-Class Homework (15%)
- Read DRS Chapter 1 with groups of 4-5.
- Due date: Friday, August 9, at 18:00.

Globalization and International Business (IB)

Definition of Globalization
- Involves deepening interdependent relationships across nations.
- Eliminates barriers to the movement of goods, services, capital, technology, and people.
- Example products affected: fruits, vegetables, gasoline.
Value Chain and Global Production
- Refers to steps in creating a finished product from design to delivery.
- Identifies activities where value is added, including sourcing, manufacturing, and marketing.
- Efficient global supply chains can enhance production.
Examples of Global Supply Chains
- Aircraft Production
  - An aircraft consists of approximately six million parts.
  - Construction relies on various global suppliers.
- iPhone Production
  - The iPhone 6s contains 34 components sourced worldwide.
  - Most assembly occurs in China to reduce costs.
Challenges in Global Supply Chains
- Labor exploitation with poor working conditions despite low costs.
- Environmental pollution from transport-related issues.
- Supply chain disruptions caused by pandemics or conflicts.

Factors Leading to Globalization

Technological Advancements
- Innovations in communication and transportation enable quick movement and idea exchange.
- Examples include telephones, mobile phones, the internet, automobiles, ships, and airplanes.
Liberalization of Trade
- Aims to create competitive advantages through technology and free trade agreements.
- Currency exchanges (e.g., US Dollar, Euros) support international trade.
- Governments may limit trade to protect domestic industries, risking compliance with free trade agreements.
Consumer Pressure
- Rising standards of living and purchasing power lead to higher consumer expectations.
- Increasing information availability influences consumer demand.
- Human Development Index (HDI) correlates with life expectancy, health, and education, thereby impacting consumption.
Growth in Global Competition
- Increased competition among companies on a global scale.
- Emergence of "born global" firms that leverage the internet for rapid internationalization.
- Examples of such businesses include Spotify, Netflix, and Skype, which operate across multiple countries from inception.