Globalizacion

country, the 'sis,industry ls.

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onsidersthe I subsidiaries terms of its

of Globalisation markets and competition
cnterprise. It differenChapter t defincs what globalisation means fctr a business process of setting up subsidiaries abroad tiates globalisation from the traclitional and a globnl cotnpotty' and makes a clistinction between a nniltittutit¡ttol cotltpotty looks athow a companv Based on the example of the otis F,levator company, it a global competitive having multiple international subsidiaries can lnovc towards can be strongly co-ordinated and configuration by whicl-r its international activities to a global posture integratecl across borders. This transition from a multinaticlnal factors that are waS clriven b,v variouS social, politic-al, eConomical,technological 'l'he benefits oi globalisation are described, as well as the c l e s c r i b e c il n t h e c h a p t e r . to management' constraints. Some factors are still pushing towards a local approach localisation are anall'sed' on a country-by-countrv basis, ancl the factors inducing this C]riclis presented as a tool to posiFinally the Global Integration/l.ocal Responsiveness importance ofglobal tion inclustries, companies and businessesaccording to the relative encls by introclucing some of the societal 'ersus local compctitive pressures.The chapter w i s s u e sa s s o c i a t e d i t h g l o b a l i s a t i o n . the chapter one should be able to At the end of a . Define what is globalisation and what a global firm is ancl how it differs from multinational comPanY . Ic-lentifytheforccs pushing towarcls globalisation . Identify the forces pushing for localisation Grid . position an industrv or.a business on the Global Integration/Local Responsiveness . spell out the benefits and pitfalls of globalisation.

o The phenomenon f globalisation
grown mucl] faster than t)r-er the past.30 y,ears,internatior-ral tracle ancl investment has of origin, economv. Firms have multipliedtheir presence outside their country thc r.r,orlcl and buying technology interr-rationally r,ntploving more and more people and selling -l'able n'ith similar features, ,re 1 . 1 ) . M o r c a n d r n o r e p r o d u c t s a r e s o l c li n s i m i l a r s t o r e s ,

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1982

1990

2005

Multiplier 2005t 982 1 3.8 5.6 16

: 3 D P r b il l i oU S $ ) n - ..'.. b exports illion S$) U :,'e i s 3 n d i r e c t n v e s t m e n tt o c k s c r lo n U S $ ) of Satesof foreignaffiliates n m u l t i n a t i o n ia lm s b i l l i o U S $ ) f r ( Employment foreign affiliates of of i m u l t i n a t i o nfarl m s( 10 0 0 ) mergers and Cross-border (s U acquisitionbillion S$) payments International royalties ( b i l l i oU S $ ) n N u m b eo f m u l t i n a t i o nc o m p a n i e s r al Totalnumberof foreign affiliates Totalassetsof foreign affiliates ( b i l l i oU S $ ) n t F o r e i g n x c h a n g er a n s a c t i o n s e ( b i l l i oU S $ ) n

11 .7 6 0 2,250 630 2,770 '19,600 25 I Nl'A NiA NiA 1'1,000

21.670 4,260 1,770 5,730 24,500 150 30 37,000 '170,000 5,400 444,000

44,674 12,641 10 , 1 0 3
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62,095 7169'1 77,000 7 ,7 0 0 , 0 0 0 45,564 693,000'.

3.2 28 10

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- Multinational in enterprises abroad having more than percent 50 equity wholly owned are as Companies defined firms t n o r a t l e a s1 0p e rc e n e q u i tiy j o i nv e n t u r e s . t t ." 2004. Reports. Various World Development Source. UNCTAD,

To ill industr I n ea ket cor large r keted, r subsid design of O t is ries, soorganis facture every n m ajor c results t he 18f world, of t he 1 By th structu

and carry a common brand acrossthe globc. Factoriesthat were prosperous in the Western world have been closed ancl transferred to low-cost countries. English language is now consiciereclas the lirrgrrtr fi'unctt for major business transactions. Televised broadcasts of -l'his is r,vhat events taking place in one...