International Business Management

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Evaluation 7/6/2022 2 Component Mode Duration Weightage Mid Term Exam (Compulsory) ( open book) 1.5 hrs 30 % End Term Exam (Compulsory) ( open book) 2 hrs 30% Quiz / Assignment 20 Group Projec ... t / Participation / Simulation Including Case study presentation in groups 20 Total 100 % 1 2 06-07-2022 Globalization!!!  Imagine an American driving to work in car designed by Germans, assembled in Mexico from components made in Japan, fabricated from Korean Steel and Malaysian rubber.  She may have filled the car with Petrol from British Petroleum (BP). The Petrol could have been pumped from the coast of Africa by a French Oil company that transports it to US by a Greek Shipping Line.  While driving she may have spoken to her stock broker on Apple iphone, designed in US, manufactured in China from chips bought from Taiwan, that were designed by Indian Engineers working for Qualcomm in India. 7/6/2022 3 Drivers of Globalization Declining Trade and Investment Barriers  1920s-30s: Barriers to international trade and foreign direct investment • High tariffs resulted in retaliatory trade policies  GATT lowered barriers • Uruguay Round (1993) • Established World Trade Organization (WTO) 7/6/2022 4 3 4 06-07-2022 Drivers of Globalization 7/6/2022 5 Average Tariff on Manufactured Products (%) Country/Year 1913 1950 1990 2003 France 21 18 5.9 4 Germany 20 26 5.9 4 Italy 18 25 5.9 4 Japan 30 --- 5.3 3.8 Holland 5 11 5.9 4 Sweden 20 9 4.4 4 Great Britain --- 23 5.9 4 United States 44 14 4.8 4 Source: The Economist, June 2004 Emerging Economies 7/6/2022 6 0 5 10 15 20 25 30 35 0 2 4 6 8 10 12 14 16 18 20 Percentage Tarriff % Years Import duties/ tariffs on manufactured products - 2001-2019 (%) Brazil China Ethiopia United Kingdom India United States India US and UK Brazil India 5 6 06-07-2022 Drivers of Globalization Knowledge Society and Trade Agreements  The value of world trade in merchandised goods has grown consistently faster than the growth rate in the world economy since 1950. • Trade across country borders has grown 26 times more than world production. • Knowledge society has produced more informed consumers, driving demand. • Removal of restrictions to FDI • More trade agreements 7/6/2022 7 Drivers of Globalization Role of Technological Change  Communications • Development of the microprocessor • Moore’s Law  Internet of things • Half the world’s population uses the Internet • Global e-commerce sales over $2 trillion • The Internet is an equalizer • Helps overcome constraints of location and time zones 7/6/2022 8 7 8 [Show More]

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