Challenges Faced by Women Entrepreneurs in the Era of Globalization
The Challenges of Globalization
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Transcript of The Challenges of Globalization
The Challenges of GlobalizationThe Challenges of Globalization
The Process of Globalization The Globalization Debate Doing Business in a Diverse World Global Codes of Corporate Conduct Collaborative Partnerships for Global Problem Solving
ChapterChapter
7
The process of globalizationThe process of globalization
Globalization
Refers to the increasing movement of goods, services, and capital across national borders.
Globalization is considered a process—an ongoing series of interrelated events.
Transnational corporation
A company that does business in more than one country.
The world’s top 10 nonfinancial transnational The world’s top 10 nonfinancial transnational corporations, ranked by foreign assetscorporations, ranked by foreign assets
Figure 7.1
Corporation Home Economy Industry Foreign Assets
(in $ millions)
Fiat Italy Motor Vehicles 52, 803
Vodafone United Kingdom Telecommunications $221,238
Telefonica Spain Telecommunications 55,968
General Electric United States Electrical Equipment 159,188
ExxonMobil United States Petroleum 101,728
Vivendi Universal France Diversified 93,260
General Motors United States Motor Vehicles 75,150
Royal Dutch/Shell U.K./Netherlands Petroleum 74,807
BP United Kingdom Petroleum 57,451
Toyota Motor Japan Motor Vehicles 55,974
Source: United Nations, World Investment Report 2002, Table IV-1, p.98. Data for the year 2000.
Acceleration of world trade, 1960-2001Acceleration of world trade, 1960-2001
Figure 7.2
0
5
10
15
20
25
30
1960 1980 20001970Years
% o
f G
DP
Source: World Development Indicators 2003 (New York: World Bank, July 2003, and
World Development Indicators 2002 (New York: World Bank, May 2002).
1990
The acceleration of globalizationThe acceleration of globalization
The factors that drive the acceleration of globalization: Improved communications Improved transportation systems The rise of major transnational corporations Social and political reforms The rise of international financial and trade institutions
International financial and trade institutionsInternational financial and trade institutions
The World Bank Provides economic development loans to its member nations. Funds used mainly for roads, dams, power plants, pipelines, and
other infrastructure projects.International Monetary Fund Purpose is to make currency exchange easier for member
countries so that they can participate in global trade. Lends foreign exchange to member countries.World Trade Organization An international body that established the ground rules for trade
among nations. Its major objective is to promote free trade.
Pros and cons of globalizationPros and cons of globalization
Arguments for globalization
Increases economic productivity.
Reduces prices for consumers.
Gives developing countries access to foreign investment funds to support economic development.
Transfers technology.
Spreads democracy and freedom, and reduces military conflict.
Arguments against globalization
Causes job insecurity.
Weakens environmental and labor standards.
Prevents individual nations from adopting policies promoting environmental or social objectives.
Undermines cultural, linguistic, and religious diversity.
Is just as compatible with despotism as it is with freedom.
Figure 7.3
Comparative political and economic systemsComparative political and economic systems
Democracy
Refers broadly to the presence of political freedom.
Four defining features of democracy (according to the U.N.) Fair elections An independent media Separation of powers among the executive, legislative, and
judicial branches of government An open society where citizens have the right to form their own
independent organizations to pursue social, religious, and cultural goals
Comparative political and economic systemsComparative political and economic systems
Military dictatorshipsRepressive regimes ruled by dictators who exercise total power through control of the armed forces.
Free enterprise systemsBased on the principle of voluntary association and exchange. Members of society satisfy most of their economic needs through voluntary market transactions.
Central state controlEconomic power is concentrated in the hands of government officials and political authorities. The central government owns the property that is used to produce goods and services.
Global codes of corporate conductGlobal codes of corporate conduct
The United Nations Global Compact A values-based platform designed to promote institutional
learning. Corporations are invited to voluntarily endorse core principles
covering labor, human rights, and environmental standards.
The OECD Guidelines for Multinational Enterprises Code of conduct for corporations developed by member nations
of the OECD. The guidelines are voluntary, address employment relations,
information disclosure, environmental stewardship, consumer interests, and the management of technology.
Global codes of corporate conductGlobal codes of corporate conduct
The Global Sullivan Principles The objectives are to support economic, social, and political
justice by companies where they do business. Calls on companies to support human rights and to encourage
equal opportunity at all levels of employment.
The Caux Principles Emphasizes working for the common good and respect for human
rights.
A three-sector worldA three-sector world
Business Government Civil society
Comprises nonprofit, educational, religious, community, family, and interest-group organizations. Nongovernmental organizations (NGOs)
Concerned with such issues as environmental risk, labor practices, workers rights, community development, and human rights.
Distinctive attributes of the three major sectors: Distinctive attributes of the three major sectors: BusinessBusiness
Figure 7.4a
Organizational form For-profit
Goods produced Private
Primary control agent Owners
Primary power form Money
Primary goals Wealth creation
Assessment frame Profitability
Resources Capital assets, technical knowledge, production skills
Weaknesses Short-term focus, lack of concern for external impacts
Source: Adapted from Steven Waddell, “Core Competences: A Key Force in Business-Government-Civil
Society Collaborations,” Journal of Corporate Citizenship, Autumn 2002, pp. 43-56, Tables 1 and 2.
Distinctive attributes of the three major sectors: Distinctive attributes of the three major sectors: GovernmentGovernment
Figure 7.4b
Organizational form Governmental
Goods produced Public
Primary control agent Voters/rulers
Primary power form Laws, police, fines
Primary goals Societal order
Assessment frame Legality
Resources Tax revenue, policy knowledge, regulatory and enforcement power
Weaknesses Bureaucratic, slow-moving, poorly coordinated internally
Source: Adapted from Steven Waddell, “Core Competences: A Key Force in Business-Government-Civil
Society Collaborations,” Journal of Corporate Citizenship, Autumn 2002, pp. 43-56, Tables 1 and 2.
Distinctive attributes of the three major sectors: Distinctive attributes of the three major sectors: Civil SocietyCivil Society
Figure 7.4c
Organizational form Nonprofit
Goods produced Group
Primary control agent Communities
Primary power form Traditions, values
Primary goals Expression of values
Assessment frame Justice
Resources Community knowledge, inspirational leadership
Weaknesses Amateurish, lack of financial resources, parochial perspective
Source: Adapted from Steven Waddell, “Core Competences: A Key Force in Business-Government-Civil
Society Collaborations,” Journal of Corporate Citizenship, Autumn 2002, pp. 43-56, Tables 1 and 2.