Globalisation

Question 1

What is Globalisation?

Wetherly and otter

Answer 1

1) increasing international trade of goods and services across national borders serving capitalist interests.
2) Globally organised production and investment flows, taking advantage of lower costs and benefits of different locations.
3) Migration
4) Communication, both physical (cultural intermingling and cheap, efficient worldwide travel) and virtual (via advancing ICT).
5) Global governance. Through orgs such as NATO, WHO, WEF, EU…

Question 2

Why Globalise?

X-ref benefits of free trade and comparative advantage.
X-ref Washington Consensus

Wetherly and Otter

Answer 2

Differing viewpoints on benefits. Some see it as ‘the engine’ for the growth of economies - I.e. post WWII West, Modern China - Xi Jinping - benefits to developing and developed countries.
Others see it as a threat to national interests. I.e. Trump blames loss of jobs on Chinese trade. Eurosceptics see EU as restrictive to British economic interests.

Evidence of benefit in Asian Tiger countries (S.Korea, Thailand, Malaysia, HK etc), South American economic support, and collapse of Soviet Union.

Dependent on political economy viewpoint - Neoliberal/Socialist/Structuralist

Question 3

What is Globalisation?

Needle and Burns, 2019

Answer 3

‘A process in which the world appears to be converging economically, politically and culturally.’ P12.

Using labour across borders, cultural exchange due to developments in IT and travel and supranational bodies.

Question 4

Implications for HRM

Answer 4

Companies must devise policies for attracting, retaining and relocating staff globally. Managing staff from different cultures

Question 5

The value chain

Needle and Burns chap 2.

Answer 5

‘Smiley curve :)’ represents the build up of value along a supply chain made up of international partners. E.g. IPhone - highest value added activities are kept in house

There are produced driven chains e.g. phones, PCs and buyer driven chains, e.g. clothes and shoes. P25

Question 6

MNCs

Needle and burns p26

Answer 6

• A HQ and operations in one country and operations in at least one other.
• Foreign direct investment (FDI)
• control of a global supply chain
• Management presence over seas
• centrally planned global strategy
• diffusion of management ideas a practices.