Globalization, Regionalization and Digitalization PDF

# Globalization, Regionalization and Digitalization ## Rotterdam School of Management, Erasmus University - Live Session Module 2 ## Who am I? - Associate Professor, International Strategic Management - Academic Director, MSc International Management/CEMS - Co-founder & Programme Director, Space...

# Globalization, Regionalization and Digitalization ## Rotterdam School of Management, Erasmus University - Live Session Module 2 ## Who am I? - Associate Professor, International Strategic Management - Academic Director, MSc International Management/CEMS - Co-founder & Programme Director, Space for Business - executive education for space entrepreneurs ## Three Topics Today - Environment - Globalization - Multinationals ## Topic 1: Environment ### The Industry Context and the Macro Context A diagram shows how a company is situated within an **Industry Context** surrounded by **Economic, Socio-cultural, Political, Technological and Ecological Contexts**. ### Jobs and Professions Change - Images show how jobs such as typists, telephone operators, translators and financial advisors have changed due to technology. ### Top 20 Jobs and Industries Exposed to AI language Modelling - A table shows the top 20 jobs and industries most exposed to AI language modeling. #### Jobs 1. Telemarketer 2. English language, literature teacher 3. Non-English language, literature teacher 4. History teacher 5. Law teacher 6. Philosophy, religion teacher 7. Sociology teacher 8. Political science teacher 9. Criminal justice, law enforcement teacher 10. Sociologist 11. Social work teacher 12. Psychology teacher 13. Communications teacher 14. Political scientist 15. Area, ethnic, cultural studies teacher 16. Arbitrators, mediators, conciliator 17. Judge, magistrate judge, magistrate 18. Geography teacher 19. Library science teacher 20. Clinical, counseling, school psychologist #### Industries - Legal Services - Securities, commodity contracts, other financial investment and related activities - Agencies, brokerages, other insurance related activities - Insurance and employee benefit funds - Nondepository credit intermediation - Agents, managers for artists, athletes, entertainers, other public figures - Insurance carriers - Other investment pools, funds - Accounting, tax preparation, bookkeeping, payroll services - Business support services - Software publishers - Lessors of nonfinancial intangible assets (except copyrighted works) - Business schools and computer, management training - Credit intermediation, related activities (5221, 5223 only) - Grantmaking, giving services - Travel arrangement, reservation services - Junior colleges - Computer systems design, related services - Management, scientific, technical consulting services - Other information services ### Business Concepts Run Obsolete - Images show how everyday business concepts have run obsolete such as web/email/printing/fax services, bike couriers, libraries and post offices. ### Companies Lose Their Legitimacy - The example of the Dutch steel industry is used to illustrate how companies can lose their legitimacy. ### Changes in the Macro Context Influence... - Which jobs and careers people have - Which new companies and sectors will emerge - How companies will create value - Which companies are allowed to operate ### Strategic Analysis Tool: PEST(E) Analysis A diagram shows how the **Industry Context** of a company is influenced by the **Political, Economic, Social, Technological and Environmental Contexts** in which it operates. ### Predicting the Future - An image shows someone looking into a crystal ball. ### Making Predictions - Even Insiders Can Be Wrong - **Global demand for motor vehicles will never exceed one million.** #### Gottlieb Daimler, 1901 ### Which Trends Today Will Influence The Business of Tomorrow? - Images show a variety of trends such as fitness, health, innovation, electric vehicles, sustainability and technology. ### Open Menti.com - Use Code 34 59 02 9 - **What are emerging trends today that will influence business tomorrow?** - A QR code is shown. ### Making Predictions Are Difficult When Living in a "VUCA" World - **VUCA** stands for: - Volatility - Uncertainty - Complexity - Ambiguity ### Identifying "Possible Futures" - Strategic Foresight - An image shows a back view of a person facing towards a world map. - A diagram shows how scenario planning can be used to identify possible futures. ### Climate Change Will Affect the World Economy - A news article is shown from Swiss Re titled: **Climate Change Could Cut World Economy by $23 Trillion in 2050, Insurance Giant Warns.** - Images show the impact of flooding and damage caused by extreme weather events such as flooding and wildfires. ### How Climate Change Will Impact The Economy - **Agriculture:** Flooding, increased heat and drought will likely reduce crop yields. - **Infrastructure:** Critical infrastructure such as ports, roads and communication will be affected by rising sea levels and floodings. - **Human health & productivity:** Extreme temperatures will lead to productivity losses. - **Tourism:** Heavy rain falls, wildfires etc. lower the attractiveness of locations. - **Supply chains & energy:** Extreme weather disrupts transport channels and creates more volatility in energy prices. ### There Will Be New, More Restrictive Regulations - A diagram shows how a low-carbon strategy for 2050 will impact different sectors such as power, industry, transport, residential services, and agriculture. ### There May Also Be New Business Opportunities! - Images show new business opportunities such as solar panels being installed on a roof and AC units being serviced on a building. ## Topic 2: Globalization ### Globalization in Our Daily Life - An image shows a supermarket shelf stocked with a variety of fresh produce from different countries. ### Cultural Globalization - A collage of images shows cultural globalization. - Images include: - Sushi - Pizza - A carved pumpkin - A traditional Chinese gate ### Globalization: What Are Your Views? - Overall, is globalization a force of good or bad? - What do you consider is the most important advantage of globalization? - What do you consider is the most important disadvantage of globalization? - Will globalization reverse? In other words, will globalization decrease in the next decade(s)? ### Video - **https://youtu.be/IPNhSOVs-BU?feature=shared** - An image shows a video link from CNBC titled: **The End of Globalization?** ### Topics Discussed - The rise of globalization - the growing interconnectedness of economies. - International trade has created political power - the rise of China. - Globalization has brought many benefits, but the cost for low-skilled labour are also evident. ### Downsides of Globalization - Images show protest signs related to globalization. ### Globalization in Waves - A diagram shows how trade openness has fluctuated over time since 1870. - The diagram highlights periods of globalization and slowbalisation, as well as the impact of geopolitical events such as WWI and WWII. - **Source:** World Economic Forum ## Topic 3: Multinationals ### What is the Best Description of a Multinational? - An internationally active company - A company exporting/importing goods or services - A company that owns shares in foreign companies - **A company that owns and controls foreign subsidiaries** ### Multinationals Control Our Lives - A large infographic shows logos of many well-known multinational companies, organised into categories. - **Oxfam, Behind the Brands, 2017** ### Multinationals Substantially Contribute to World Trade - A graph shows world trade in intermediate vs. final goods as a percentage of GDP from 1970-2014. - It highlights the dominance of intermediate goods, which implies a higher reliance on global supply chains. - **Source:** Agustin Carstens, "Global market structures and the high price of protectionism," remarks at the Federal Reserve Bank of Kansas City’s 42nd Economic Policy Symposium, Jackson Hole, Wyoming, August 25, 2018 (https://www.bis.org/speeches/sp180825.pdf). - **https://www.piie.com/microsites/globalization/what-is-globalization** ### Multinationals Are Not Always Big and Well-Known - An image shows the logo of ARUP - a multinational engineering and design company. ### Preview: In Session 6, You will learn... - Why companies internationalize - Which countries they choose for international expansion - How multinationals come into being - Which obstacles they face in foreign countries ## Topics We Have Discussed - Macro trends influence the business of tomorrow. - Globalization is no longer progressing. - Multinationals dominate International trade and many industries. ## Next Module (4) - National Culture - An image shows an optical illusion of a duck-rabbit. ## Appetizer - Listen to this Podcast! - **The U.S. is just different - so let’s stop pretending we’re not (Ep. 469) ** - A link to a Freakonomics podcast is included: **https://freakonomics.com/podcast/the-u-s-is-just-different-so-lets-stop-pretending-were-not-ep-469/** ## Thanks for Joining! - An image shows a person smiling and waving.