Summary
Summary Globalization & Offshoring
- Course
- Institution
Summary of the lectures and articles of Globalization & Offshoring.
[Show more]
Seller
Follow
victorroos32
Reviews received
Content preview
Summary Globalization & OffshoringContent
Page
Introduction 2
§1 The globalization of markets and firms 3
§2 The concept of distance in international business 6
§3 Offshoring 10
§4 Offshoring of innovation activities 13
§5 Maximizing global potential + Recent trends in IB 17
,Introduction
Over the last few decades, markets have significantly increased their extent of globalization. Flows of
several types of inputs (e.g., products, capital) have increasingly become international. Even though
the recent global economic crisis has caused declines in the internationalization of many of these flows,
we are nowadays in a much more interconnected and globalized world than twenty years ago. Firm-
level data corroborate the notion that companies are even more globalized than markets. Despite the
fact that larger companies tend to rely more extensively on cross-border operations, small and medium
sized enterprises, especially in Western Europe, also often expand outside of their home country. In
particular, the recent progresses of information and communication technology has given companies,
irrespective of their size, the opportunity to fine-slice their value chain and relocate each of their value
activities where they can be most efficiently performed. This phenomenon, generally referred to as
business process offshoring, has contributed to a substantial reconfiguration of the modern
multinational company.
2
, §1 The globalization of markets and firms
Required readings:
- 1.1 – Ghemawat, 2007
- 1.2 – Altman & Bastian, 2020
- 1.3 – Cuervo-Cazurra et al., 2020
Questions addressed:
- How globalized is a company?
- How did it move on internationalization steps?
§1.1 Globalization
Slides 30-33, article 1.2
Globalization is defined as the process of international integration arising from the interchange of
world views, products, ideas and other aspects of culture. According to Altman and Bastian (2020)
there are four basic aspects to globalization:
- Trade: trade and transactions
- Capital: capital and investment movements
- People: migration and movement of people
- Information: dissemination of knowledge
The first age of globalization was from the mid-1800’s to the 1920’s. Labor was highly mobile: up to 1
million people were leaving Europe each year. It was driven by the steamship, telegraph, railroad,
telephone and airplane.
§1.2 Recent drivers of globalization
Slide 34-36, article 1.3
According to Cuervo-Cazurra et al. (2020) two main forces underlie the recent globalization of markets:
- Technological advances
- Economic liberalization (falling barriers to trade and investment)
3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller victorroos32. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.50. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67474 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now