Hypothetical Essay Titles With the aid of examples: "â Explain the term globalization and what it's effects have been upon modern organizations? "â Discuss the major characteristics of multinational enterprises (MNE's) and how they typically manage their internationalization process? "â Outline are the cultural implications for managers as the internationalization process matures? What is Globalization? "â "The production and distribution of products and services of a homogeneous type and quality on a world wide basis."� (Naylor, 1999) "â Move away from production and sales in a domestic environment.
"â A response to a changing competitive environment.
Difference between the terms Internationalization and globalization "â Internationalization is the increasing geographical dispersion of economic activities across national boundaries. (We will revisit later in the seminar.) "â Globalization is an advanced form of internationalization which implies a degree of integration between internationally dispersed activities.
Features supporting Globalization (cited in Naylor, 1999; Daft, 1994) "â Accommodation among political systems.
"â Open world economy.
"â Increasing awareness and respect for other cultures.
"â Development in communications.
"â "ÃÂGlobal village' effect.
Overview of developments There has always been international trade, but now there are many regulatory bodies: "â NAFTA; ASEAN; EU "â International trade negotiations - The General Agreement on Tariffs and Trade; The Treaty of Rome & The Single European Act "â The World Trade Organization (WTO).
Drivers of Globalization (cited in Boddy and Patton, 1998) "â Increases in innovation and technology.
"â Accelerated growth of Foreign Direct Investment.
"â The growth of intra firm trade (Make or buy in one country and export to another).
"â The growth of complex supply arrangements - joint ventures, mergers & acquisitions.
Causalities of Globalization "â Geographical effect - 1st versus 3rd world economies.
"â Multinational dominance effects decolonisation - recolonisation.
"â Weakening of national cultures,