globalization final
TRANSCRIPT
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Globalization STEPHEN MCKINNEY / JON LIVOLSI / BRENDON SOUSA / SAMUEL
MCDONALDGARRICK PENHA / WESLEY THOMAS
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Table of Contents Table Of Contents
Quote What is Globalization?
Video Effects of Globalization
Reason for the Rise in Globalization Examples of Globalizations
Closing
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“
”“Globalization is not something we can hold off or turn off…. it is
the economic equivalent of a force of nature-like wind or
water.”-Bill Clinton
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What is Globalization?
Is a movement toward a more interconnected and interdependent world economy.
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Effects of Globalization
STEPHEN MCKINNEY / JON LIVOLSI
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Effects of Globalizations• Effects on U.S. Economy
• U.S. has largest economy• What it does affects the Worlds economy• What happens in the World economy affects U.S.
• Effects on the World• India and China have large growing Economies• This makes the demand for energy go up• And is the reason for rising oil prices
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Globalization of Markets Globalization offers new opportunities for companies
By expanding worldwide a companies consumer base expands as well
2013: 21 million cars bought in China, only 15 million bought in U.S.
You have to adjust the product to suit the unique taste of the local market
Coca-Cola adjust its recipe to appeal to people around the world
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Globalization and Production
Outsourcing- assignment of certain tasks, such as production or accounting, to an outside company or organization
Offshore outsourcing- involves moving production form domestic site to foreign location
Many companies have moved production to china because it is cheaper and profit is increased.
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Reasons for the Rise In Globalization
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Dramatic Decline In Trade and Investment Barriers
● Government restrictions that prevent the flow of goods, services, and financial capital across countries.
● Prevent the flow of goods, services, and financial capital across countries
● Lowering barriers make global business cheaper and easier to conduct.
● Lower barriers also allows a firm to move it’s different production activities to the lowest cost locations.
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Technological Innovations Advances in technology, communications, and transportation
have made it easier to better manage global production and marketing of products
With the help of internet conferencing tools, a business man can meet with contacts without having to physically be there.
This has greatly reduced the cost of doing business.
Benefit small businesses more so, in a sense that they can inexpensively access customers worldwide
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Global Business Trends
Due to the rise of Globalization, specific trends have been developed to help increase it’s use on a global scale
These Trends consist of: A Growing Role for Developing Nations Rise in Non-U.S. Foreign Direct Investment Rise in Multinational Enterprises Increasing Democratization
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A Growing Role for Developing Nations Countries around the world, such as China, India, and Brazil have
expanded at fast pace and other countries are following in their footsteps
This trend is not only expected to last for a long time but assists countries on increasing their presence on a global scale
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Rise in Multinational Enterprises
Globalization has led to a rise in the importance of multinational enterprises
Businesses that provide products to multiple countries have become making scene on the world stage
Companies such as Transferwise have used technology to be able to expand its business abroad at a rapid pace
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Rise in Non-U.S. Foreign Direct Investment
The U.S. was originally number one in the investments and purchases of companies in foreign nations
Now countries are starting to invest in foreign companies across the world
This causes an increase in foreign direct investment in not only the U.S. but also in developing nations
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Increasing Democratization
The increase of democratization and adoption of free market economies has been leading more and more countries to get involved with the global economy
If the trend continues, there will be vast opportunities for international business due to the expansion of the global market and as more locations become production sites
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Examples of Globalization
SAMUEL MCDONALDWESLEY THOMAS
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The Globalization of Coca-Cola
• Founded in 1880 by John Pemberton and was moving towards Globalization by the early 1900’s
• Asa Griggs Candler became majority shareholder in 1888 and quickly started moving towards expansion.
• Operates in over 200 countries• 70% of Income is created outside
the U.S.
The recipe for success was created early on.
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A System that Works
Coca-Cola as a consistent product Brand trust Easily recognized logo Personalization to specific countries Maintained consistent price The Coca-Cola System of franchising was
born This model continues today
Coca-Cola Strived early on for brand recognition
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Production Globalization
Expansion to Cuba and Panama Plants opened near areas of demand Plants opened to curb shipping costs Cheaper to bottle the product on site than to ship in The franchise model continued 275 smaller companies bottling and distributing Coca-Cola Easy expansion with smaller up front costs Flexible packaging Technological advances in cheaper transportation
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Expansion in Todays Market
The continued success of the Coca Cola brand while remaining true to its core Changes to suit individual markets
Addition of PowerAde for the sports market Diet Coke, Vitamin Water, Odwalla products for markets
focused on health Flavored products such as Vanilla and Cherry Coke to combat
other brands
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McDonald’s McDonalds was founded in California in 1948 By 1963, they had about 500 restaurants nationwide, and sold well
over 100 million burgers In 1967, McDonalds went international opening their first restaurants
in Canada and Puerto Rico Since, McDonalds now operates in 119 different countries.
(McDonalds first location)
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International MenusCountry Product Description
Germany Nurnburger Bratwurst on a soft roll with mustard
Philippines McSpaghetti Spaghetti topped with hotdogs and served with a piece of fried chicken
Japan Ebi Filet-o Burger patty made of shrimp, on sesame bun
Mexico McMolletes A McMuffin with refried beans, cheese, and pico de gallo
Israel McFalafel A Kosher falafel with chickpea fritters and assorted vegetables
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MCDONALDS MENU ALTERATIONS In countries such as India,
McDonalds alters the entire menu to better fit their the cultures
Buddhism is a major religion in India Many Buddhists are vegetarian
and as a result, Indian McDonalds have many vegetarian options
Curry is a Major seasoning used in the Indian culture McDonalds use it in many of the
dishes
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Sources
VIRTUAL SOURCES http://www.globalization101.org/what-is-globalization/ http://www.forbes.com/sites/mikecollins/2015/05/06/the-pros-and-cons-of-glob
alization/ http://
www.chicagotribune.com/business/ct-biz-mcdonalds-food-around-the-world-photogallery.html
http://www.aboutmcdonalds.com/content/mcd/our_company/mcdonalds-history.html
BOOKS Martin,K., Poasty, M., & Solomon, M. (2016). Better Business (4th ed.). Boston,
Massachusetts: Pearson Education
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