Essay on Emergence of the Globally Integrated Business World

5960 Words Nov 17th, 2012 24 Pages

Learning objectives

• Understand what is meant by the term globalization.

• Be familiar with the main drivers of globalization.

• Appreciate the changing nature of the global economy.

• Understand the major arguments in the debate over the impact of globalization.

• Appreciate how the process of globalization is creating opportunities and challenges for business managers.

This chapter introduces the emergence of the globally integrated business world. Globalization has reduced the traditional barriers to cross-border trade and investment (distance, time zones, language, differences in government regulations, culture, business systems).

To begin the
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Is SAAB a Swedish car? Saab is partially owned by General Motors of USA, uses many mechanical parts imported into Sweden from GM in Germany, and assembles its cars in Sweden for sale in USA. Is a Mercedes Benz assembled in Alabama an American car? Is a Pontiac assembled in South Korea a Korean car? Volvo, Jaguar and Rover SUVs are owned by Ford; Chrysler is a part of Daimler Chrysler; Volkswagen owns Rolls Royce.

OPENING CASE: Flat Panel Televisions and the Global Economy


The opening case describes the development of the flat panel television industry over recent decades. The case, which follows the production of flat panel televisions across the globe to low-cost locations, clearly demonstrates the impact of globalization, and in particular the globalization of production. Discussion of the case can begin with the following questions:

1. Reflect on the evolution of the flat panel television industry. Why has production shifted from country to country? What does your response suggest about the globalization of production?

2. RCA developed the underlying technology for the flat panel television in the 1960s, yet today, the company plays only a minor role in the industry. Why?

3. How has the globalization of the flat panel television industry benefited consumers?
Who are the losers in the industry?

Another Perspective: Students can learn more about Vizio at the company website at
{}, and also through

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