CHAPTER 1: Perspectives on Globalisation and International Business

CHAPTER 1: PERSPECTIVES ON GLOBALISATION AND

INTERNATIONAL BUSINESS
1

STUDY GUIDE
1 Fayol in the early 20th century professes
management to be a profession. A manager thus
according to Fayol is one who should plan, organise,
command, co-ordinate and control. This is the
normative approach to management.
Since then many writers have put forth on what a
manager does and not what a manager should do ( as
postulated by Fayol). Notably Mintzbergs ( 2009)
work on the role of a manager divides the work of a
manger into 10 roles under three categories:
Interpersonal, informational and decisional
roles. Mintzbergs work is more descriptive rather than
normative. Mintzberg summarises the work of a
manager as brevity, fragmentation and verbal
communication best characterises the work of a
manager

Enter
now the
global
context

2 This new subject explores what a management is

all about by looking at management on a world or
a global context. This means what works at home
may not necessarily work abroad. The world is full of
opportunities, complexities and challenges which an
international manager should be aware of. It is an
exciting world that awaits a young and enterprising
person who would like to make international
management his long term career and companion.

Chapter
outline

3 Chapters 1 to 6 you will be able to acquaint

yourself on how the formal and informal institutions of
the international community, regions and countries
affects the job of the manager
Chapters 7 to 10 you will learn how an
international managers about strategies to compete,
invest and operate in different countries and regions.
Chapters 11 to 14 you will be able to equip
yourself with the knowledge of organisational
structure, global sourcing, information systems and
human resources, and how they go about managing an
multinational organisation location abroad.

Content
of this
chapter

4 From a business perspective, you can think of

globalization in terms of the globalization of markets and
the globalization of production.

Introducti
on

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CHAPTER 1: Perspectives on Globalisation and International Business

The globalization of markets refers to the merging of

historically distinct and separate national markets into one
huge global marketplace. As trade barriers between
countries fall, companies like Ikea, Sony, and Coca-Cola are
able to sell their products to a global market where
consumers are more and more alike.
National markets are still very relevant, challenging
companies to develop different marketing strategies and
operating procedures.
The second facet of globalizationthe globalization of
productionrefers to the sourcing of goods and services
from locations around the globe to take advantage of
national differences in the cost and quality of factors of
production like land, labour, and capital. Companies hope
that, by sourcing and producing their products in the
optimal location, they will be able to better compete
against their rivals. Below is a diagram showing the sourcing
for Dell Notebook computer is from various parts of the
world.

Boeing, for example, outsourced about 65 percent of its

787 aircraft manufacture to foreign companies. Boeing

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CHAPTER 1: Perspectives on Globalisation and International Business

believes that this strategy allows it to use the best

suppliers in the world, an advantage that will help to win
market share over its rival Airbus Industries. Even
healthcare is globalized. For example, US and Canadian
hospitals now routinely send X-rays via the internet to be
read in India, and some insurance companies even
recommend having certain medical operations be
conducted in foreign countries.
Imagine a morning in the life of one Nageb: He wakes up
wearing his M&S pajama made in China or Mauritius. He
uses a Colgate toothpaste, a brand made from America but
produced in Malaysia but the toothbrush is Systema lion, a
Japanese Brand made in Malaysia or China. He has his
Gardenia bread made in Singapore but the brand is from
UK. He drinks his English Lipton Earl grey tea but the fine
tea leaves are from Sri Lanka. He jumps on his Japanese
Motorbike made in Japan, his Petrol is from Saudi Arabia
processed by the Dutch oil company Shell. And the story
can go on and on.

1.2 What is STUDY GUIDE

globalisati 1 Globalisation has been described, therefore,
on?
as the concrete structuration of the world as a
whole: that is, a growing awareness at a
global level that the world is a continuously
constructed environment.
Marshall (1998: 258)
The word globalisation would mean different things
to different people. The following perhaps would
represent what is globalisation:
* accelerated speed of communication and
transportation technology Hill calls this space
shrinking technology
* rising power of MNE and increased in inequality of
income
* increased in competition for jobs, especially for low
skilled workers

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CHAPTER 1: Perspectives on Globalisation and International Business

* is a force eliminating differences between

distinctive cultures
* world is moving towards a homogenous plain
without national boundaries
How the word globalisation is received depends on
how and in what context is one referring to. As can
be seen from the aforesaid there are a plethora of
interpretation on what is globalisation.
2 In context there has been a significant
development in international bodies to manage this
clich of globalisation. Hence the following bodies
now are connected with the issue of globalisation
* WTO ( previously, GAAT General Agreement on
Tariff and Trade ) it regulates and promotes world
trade
* IMF handles all international monetary matters
and ensures confidence and stability in the
international monetary system.
* World Bank provides financial help to developing
countries to aid especially in the development of
infrastructure which is so vital to the building of
commerce, industry and business.

1.3 Trend
towards
globalisati
on

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STUDY GUIDE
1 Globalisations has been hardly new. It has been in
existence since the time immemorial. Voyages of
discovers of the new world like Vasco Da Gama and
Christopher Columbus are a attestation to this.
However during the past 150 years there has been a
marked development in globalisation. Jones
( 2004 ) has identified two waves as shown in the
hereunder diagram.

CHAPTER 1: Perspectives on Globalisation and International Business

Each wave is characterised by long term trends and

cyclical swings
Triad Nations globalisation was particularly
confined to the Triad nations of North America,
Western Europe and Japan.
BRICs then entered the emergin economies of
BRICs in the 1980s comprising, Brazil, Russia, India,
China and some have even included South Africa.
The following are the characteristics of the
emerging economies:
* recently established institutional framework that
helps in international trade and investment.
* low and or middle level incomes
* above average growth vs other similar nations.
In the first decade of 21st century the was a
phenomenal growth in world GDP, cross border trade
and per capita income prior to the global economic
crisis of 2008/09
However due to the concerted and co-ordinated
global effort of the world economies orchestrated by

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CHAPTER 1: Perspectives on Globalisation and International Business

IMF from mid 2009 there was renewed confidence

albeit the recovery in the developed country has been
somewhat subdued while the rebound for the
emerging economies was much faster. As seen in the
diagram above the second wave has been less
steep from 2010-2012.
Two key factors seem to underlie the trend
towards the
increasing globalization of markets and production: 1)
the
decline of barriers to trade and investment and
2)
technological change.
Hill suggest 4 trends for this:
1. Changes in the world output and trade
The triad market of the US, Japan, and Western
Europe
accounts for about half of the world's total
consumption
and an even higher proportion of purchases of
such
products as computers, consumer electronics,
and
machine tools. It is not surprising therefore that
most
MNEs expand a major part of their efforts in these
areas.
However, the dominance of the triad countries is being
challenged by the growth in developing countries.
The World Bank forecasts that by the year 2020,
Canada and Spain will be replaced in the top fifteen
economies by Taiwan and Thailand. By that time,
seven of the world's largest economies will be Asian
countries, compared with only three in 1992. China is
expected to surpass the US as the World's largest
economy.
Developing countries will surpass the
industrial countries in world output during the late
1990s. Further, the middle class is growing rapidly in
many Asian countries, both in absolute numbers and
in percentage of the population.
For example,
between 1993 and 1998, the middle class in India is
projected to increase by 110 million people and from
23.5 percent to 33 percent of India's population.
Thus, developing countries, especially those of Asia,
will command more attention by international

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CHAPTER 1: Perspectives on Globalisation and International Business

companies as a location for both sales and production.

In essence, there will be a new triad made up of
North America, Europe, and East Asia.

2 Foreign Direct Investment

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CHAPTER 1: Perspectives on Globalisation and International Business

1960s
1980
2007
Today

USA accounted for 66 % of world FDI

Share of USA, UK, Japan, Germany,
France, Netherland have declined
FDI by developing countries are on the
rise

3 - Types of companies

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CHAPTER 1: Perspectives on Globalisation and International Business

An international company has its base

(headquarters) in one country, and trades overseas
from that single base - this relates specialised product
e.g UOL
A
multinational
company/Multidomestic
Company has a home base in one country (referred to
as the home-country), but has then established
operations in a number of other countries, (referred to
as host-country). So it trades from a number of bases
Retailers
A
transnational
company
(TNC)
is
an
organisation that is consciously attempting to
be global by disassociating itself from one home
country. There may be one or more main bases but
the company does not see itself as in anyway
belonging to those countries. This type of company
has taken a strategic decision to become global but is
still seen as coming from one or more countries - e.g
auto - manufacturer, Consumer Electronics,
Banks

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CHAPTER 1: Perspectives on Globalisation and International Business

A global company has a high need for integration

and a low need for local responsiveness. The world is
their market and thus has a geocentric orientation
towards international market. e.g. SIA, Boeing,
Commodities like oil and diamond
Since 1960s two trends have emerged:
1) an increase in the number of non US MNCs,
MNCs from France, UK, Germany, Britain as well as
Japan have become more important as they engage in
FDI.
2) an emerging trend in the growth of minimultianationals like Lenovo, Feng Deng and SAIC
all Chinese companies aching to go abroad.
3) Small firms can also become global via through
internet and website availability.
4. The collapse of USSR has brought new and
emerging opportunities for MNCs.
In addition
countries such as India, China, Mexico and the like
are the home of large MNCs

1.4 The
globalis
ation
debates

1 What is the faade of the global

economy in the 21st century. As the
world moves towards a more integrated
system, it brings about both benefits and
criticism.
Benefits - Bhagwati proponent of
globalisation have the following benefits
lower prices, more economic growth and
more employment
Critics would say that it will cause job
losses, damage the environment and
create cultural imperialism
By this simple introduction we can identify
four major areas of debate.
Jobs and income.
CRTICS
Firms have an attraction to
transfer low value jobs to

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SUPPORTERS
Supporters of globalization
would claim otherwise. If the

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CHAPTER 1: Perspectives on Globalisation and International Business

developing countries as trade

barriers have been removed. It
will simply be foolish to keep
low cost jobs at home when it is
cheaper to produce in China,
India, Honduras for that matter.
Such transfer in production
overseas will create
unemployment at home

home consumers pay less

then he/she will have
money to spend on other goods
and services and this has the
effect of boosting the domestic
economy.

Labour policies and the environment.

CRITICS
MNCs will have incentive
to move the production
to pollution haven
countries where lax
regulations on
pollution and labour
laws will reduce their
cost of operation and add
more to their profits

SUPPORTER
Critics would argue that
as the country
progresses the host
government is likely
to impose stricter
regulations on
pollutions and protect
the environment
the e.g. of China.
the government has
waken up to the fact that
their cities are polluted
and thus have then
measures to curb
pollution and protect
their workers from
unscrupulous and
exploitionist MNCs.

Shifts in economic power

CRTICS
Governments of
countries will lose their
power to manage, in
other words
governments will lose
their sovereignty to
supranational
organizations such as
WTO, IMF, European
commission in the case
of the EU.

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SUPPORTER
Supporter would say that
this is not true as
policies are
introduced to promote
the collective interest
of member countries and
will aid their
development rather than
retard it.

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CHAPTER 1: Perspectives on Globalisation and International Business

Wealth distribution.
Critics
Globalisation enrich the
pockets of countries
which have strong
global brands and that
the income equality
between the haves and
have nots will widen
usually to the detriment
of developing countries
who are usually devoid of
global brands

1.4.1
Does
Distanc
e Still
Matter?

Supporter
Supporter would say that
the inequality in
income is the creation
of domestic
governments who are
NOT able to curb
population growth,
corruption and poor
economic
management. For
example some
totalitarian governments
may pursue their own
self interest rather than
the interest of the
people. And also
economic growth in the
developing countries is
due to loan debt rather
than productivity growth.
These are not the faults
of globalization

Friedmans View
Friedman (2007) believes
globalization is
accelerating and is flattening
the world so
that every nation will eventually
be part of
the global marketplace and
production process. Dicken
(2007) calls this a hyper
globalist view.
Friedman has a technological
stance on globalization
believing that technology has a
significant part to play
flattening the world. The
dependence on the internet
and the WWW enables
distance to be reduced, call
centres to be created, coordination of outsourcing is

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However, Friedman may not

provide the only valid argument
for defining
globalization. Although to
hyperglobalists
globalization literally means
the free co-operation and
connection with nations all
over the world,
Ghemawat (2001) and
Dicken (2007)
gross overstatement and
creates a general misconception
about the
extent of globalization's reach.
In his influential article
Distance Still Matters
Ghemawat
companies in their
pursuit of the benefits from
globalization,
consistently
the attractiveness of foreign

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CHAPTER 1: Perspectives on Globalisation and International Business

made possible with the use of

fast data transmission,
conferences between two of
more overseas operations is
made possible with the help of
video conferencing. So the
world has become flatter with
inter-connected global
operations.
Friedman argues that ten
flatteners have shaped
globalization and have caused
increased homogeneity in the
world.
These include (see separate
article ) :
1 the fall of the Berlin Wall
representing economic
liberalization,
2 the development of internet
protocols,
3 workflow and open source
software,
4 open source software and
uploading
5 & 6 the increased use of
outsourcing and offshoring, 7
the development of global
supply chains,
8 the increased use of
specialized firms to carry out
internal functions,
9 the development of search
engines,
10 and latterly (recent) of
wireless, digital, mobile,
personal, and virtual
technologies.
Personal technology
relationship is
gaining momentum, where
people not
content with established
information sharing
bodies, take matters into their
own hands with blogs, review
sites, and

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markets
that the true amount of trade
and investment between
countries is influenced largely
by geographical and cultural
differences
countries 5,000 miles apart only
perform 20 percent of the trade
they would otherwise do if they
were 1,000 miles
apart, and furthermore
ten times more likely to take
place if a country was a
former colony of another
which,
Ghemawat argues
lowers the
cultural barriers to trade. These
figures taken together explain a
key
point in Ghemawats argument,
which is
that distance still matters
and companies must
explicitly and thoroughly
account for it when they make
decisions about global
expansion. Arguing against
Friedmans flattening argument,
Ghemawat elaborates that
global communications and
technologies have
been argued to be
shrinking the world,
running it into a small and
relatively homogenous
place. But when it comes to
business, thats not only an
incorrect assumption but
also a dangerous
The cultural difference
between countr
is still wide and complex, and
although outsourcing and
foreign direct investment have
recently grown between
nations, it is
evident, as we shall see in

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CHAPTER 1: Perspectives on Globalisation and International Business

establishing their own media

channels.
Everyone essentially
becomes in control
of their own personal
networking and
spread of influence.

chapter 3, that
cultural differences still prove
challenging. In support of
Ghemawats
statement, Dicken (2007)
argues that quantitative and
aggregative evidence
suggests that the world
economy was more open and
more integrated in the
half century prior to the First
World War,
than it is today.
also supports this empirical
based analysis stating that
cultural differences in
religious beliefs, language,
social norms, and
behaviours
have a huge impact in the
risk involved in trading and
the likelihood of succeeding
Therefore, according to these
theorists, globalization cannot
be characterized as
flattening the world. As
puts it:
there are undoubtedly
globalizing forces at work,
but we do not have a fully
globalized
explains that part of the
problem with defining
globalization is
that aggregative and
quantitative analysis though
valid, are not the only story we
should take on board when
thinking about the world
economy
today. The economy today he
goes on to suggest, constitutes
a deep and complex integration
that cannot be captured in the
statistics of trade and foreign
direct investment (FDI). Instead
globalization is:
a supercomplex series of
multicentric, multiscalar,

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CHAPTER 1: Perspectives on Globalisation and International Business

multitemporal, multiform
and multicausal processes.
This explanation, in contrast to
Friedmans
technological progres
more dynamic and circulatory in
design. To summarize, it would
seem that
includes
fluctuating levels of trade
and FDI, economic growth of
emerging markets,
growing Transnational
Corporations (TNCs),
outsourcing and labour
force migration, as well as
technological innovations
that have facilitated
movements.
In his article
Matters, Ghemawat
complements this view by
suggesting that companies
often overestimate the ease
with which their
business can move abroad. The
cultural, administrative, and
geographical distance
between nations presents a
fundamental challenge to
firms facing the
globalization of the world
economy today.
uses the example of
Murdochs
Star Television
network, which assumed that
the Asian audiences would be
enthusiastic about
English language programmes
and films.
Furthermore, Murdochs
underestimating of the
administrative differences
between Asia and the USA led
him into political
calamity as he claimed live on

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CHAPTER 1: Perspectives on Globalisation and International Business

television that
watch what one wanted
was a threat to Asian
totalitarian regimes
everywhere. This led to the
blocking of Star TV from
Chinese television, which is a
huge market for Murdoch.
Coca-Cola
also had problems in the
Peruvian market
when they attempted to replace
Inca Kola,
the national beverage, with
their own US branded Cola. The
Peruvian people held
mass demonstrations against
Coco-Cola
until their Inca Cola was
returned to the shelves. Being
sensitive to national
differences is not just a
consideration;
international business it
may well be an imperative
to survival

1.5 What
does
globalisati
on mean
for
companies
?

1 In order to become successful it is obvious that

companies should work with forces for globalisation
and improve their global performance. The following
are ways by which companies should work with such forces

1.1 Low barriers to trade and investment

The is now an allure to locate their operations in other
countries rather than be dependent on their own domestic
market. Take the e.g. of OSIM and BreadTalk who have
expanded regionally. These create multiple markets
having interdependency between countries for goods and
services.

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CHAPTER 1: Perspectives on Globalisation and International Business

1.2 Technological change

Advances in communication, information processing and
transportation have helped companies to be become
global even smaller companies. The advent of
microprocessor brought about high power, low cost
computing has accelerated the process of globalisation.
Girls can order their trendy clothes by simply clicking on
the website. The order will be transmitted in real time and
whichever supplier is nearer to the girls home country she
will be delivered her order within a few days of the order.
Further she will be given an order number which can
helped her tracked down her order. A call centre can be
maintained in inexpensive India or Philippines. Oh Yes! My
friends the internet has enabled small and big firms to
become global players. Also the internet and WWW has
facilitated the control and co-ordination of globally
dispersed value chain activities ( overseas operations )
making the firm a truly global company.

1.3 Transportation improvements

Over the years the logistics of transportation have
significantly improved making the transportation of goods
seamlessness. Containerisation and development of
super freighters has helped in the movement of trade.
Refreighted containers has enabled the transportation
of perishable items like diary products and meat and fish.
Hence the time taken to transport goods from one part of
the world to the next has significantly been reduced and
with the use of containers the cost too has fallen
drastically.
So there is evidence that there is a global shift in the way we do
business. But global firms need to be sensitive to the local needs of the
country in which they operation. For example Yahoo has the same
platform wherever it operates but the content is different in different
countries In Australia the front page has Cricket while in the US it has
American Football and in Brazil it has soccer. Similarly Google when it
entered the Chinese market it has a search engine using a Chinese name
and customers for their website to suit the taste of the Chinese internet
users who spend a lot of time on the internet and read left hand side of
the screen first. However Google as we will see in later chapters had
some moral issues in China.

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SHORT Q & A
QUESTION 1: Describe the shifts in the world economy over the last
30 years. What are the implications of these shifts for international
businesses based in Britain, North America, and Hong Kong?
ANSWER 1: Globalization has led to an ever more integrated world
economy over the past 30 years. There has been a significant shift
away from the USA and Western European countries as being
dominators of world business. While the role of these countries is
still large, developing countries and Asian countries are becoming
increasingly active and aggressive in international trade and
investment. Significant implications for British firms involve their
need to look beyond Europe and America for investment and
opportunities. Consumer spending power is growing the most
quickly in developing countries.
British firms also face the
opportunity (and the threat) of attracting Asian firms interested in
Britain as a lauchpad for the European market. For North American
firms, the same holds true, although the importance of the
increasing prosperity in Latin America suggests a potentially huge
market in their backyard. Hong Kong, while losing its
independence, is perceived as the gateway to the immense
market of mainland China. While the free market freedoms Hong
Kong firms have enjoyed are now under question, the access to
China is improving along with the move towards a market economy
within China. International businesses based in all three locations
are facing new opportunities and threats.
QUESTION 2: "The study of international business is fine if you are
going to work in a large multinational enterprise, but it has no
relevance for individuals who are going to work in small firms."
Evaluate this statement.
ANSWER 2: Persons who believe in this view, and the firms that
they work for, may find that they do not achieve their full potential
(at best) and may ultimately fail because of their myopia. As
barriers to trade decrease and state of the art technological
developments take place throughout the world, new opportunities
and threats exist on a worldwide basis. The rise of the minimultinationals suggests there are global opportunities for even small
firms.
But staying attuned to international markets isn't only
important from the perspective of seeking profitable opportunities
for small firms; it can also be critical for long-term competitive
survival. Firms from other countries may be developing products
that, if sold internationally, may wipe out small domestic
competitors. Scanning international markets for the best suppliers
is also important for small firms, for if a domestic competitor is able
to tap into a superior supplier from a foreign country, it may be able
to seriously erode a small firm's competitive position before the

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small firm understands the source of its competitor's competitive

advantage and can take appropriate counter actions.
QUESTION 3: How have changes in technology contributed towards
the globalization of markets and of production?
Would the
globalization of products and markets have been possible without
these technological changes?
ANSWER 3: Technological changes have significantly contributed to
the globalization of products and markets, and accelerated the
creation of a global village.
While increasing globalization of
markets has been taking place since before either Marco Polo or
Christopher Columbus traveled across the globe in search of trade,
recent technological developments have brought the world closer
together more quickly than at any time in the past. Developments
in information processing and communication have decreased the
costs of managing a global production system, and improvements in
transportation have made the shipment of goods timelier and less
costly than at any time in the past. International firms can locate
facilities wherever it is most advantageous, coordinate the activities
between facilities, and ship products to customers worldwide more
cost effectively than at any time in the past.
QUESTION 4: Ultimately, the study of international business is no
different from the study of domestic business. Thus, there is no
point in having a separate course on international business.
Evaluate that statement.
ANSWER 4: The truth is that if an international business attempts to
utilize the same business techniques that were effectively
domestically on the international scene, it is quite likely to fail. The
annals of corporate business are lined with examples of that
concept, from small companies struggling to make an impact to
large multinationals like Procter and Gamble, who failed in Japan
when they first introduced disposable diapers to that market.
International business is different in many of the ways mentioned
here: 1) countries differ, 2) the range of problems a manager faces
is greater and more complex, 3 the limits imposed by governmental
intervention and the global trading system complicate international
business, and 4) international transactions require converting funds
and being susceptible to exchange rate changes. A separate course
on international business can provide an understanding of these
difficulties, and how conducting international business requires
consideration of issues not typically covered in other courses.

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QUESTION 5: How might the Internet and the associated World Wide
Web affect international business activity and the globalization of
the world economy?
ANSWER 5: The ability of firms and individuals to both market their
products or services, and find out about interesting new products or
services worldwide, is greatly enhanced by the World Wide Web.
Using this as an initial point of contact, we can imagine how this
could then initiate new flows of trade and investment. Consumers
can find new products of interest that are not available in local retail
outlets, and then simply order them over the internet. Firms will
find that they have an increasingly global customer base, and that
current distribution systems may be inadequate or inappropriate.
QUESTION 5: If current trends continue, China may emerge as the
worlds largest economy by 2050. Discuss the possible implications
for such a development for the world trading system, the world
monetary system, and the business strategy of todays European
and US-based global corporations.
ANSWER 5: The world trading system would clearly be affected by
such a development. Currently China enjoys a somewhat privileged
status within the World Trade Organization as a developing
country. Such a rise to eminence, however, would clearly force it to
become a full and equal member, with all the rights and
responsibilities. China would also be in a position to actively affect
the terms of trade between many countries. On the monetary front,
one would expect that China would have to have fully convertible
and trading currency, and it could become one of the benchmark
currencies of the world. From the perspective of Western global
firms, China would represent both a huge market, and potentially
the home base of some very capable competitors
Sample Questions
1

What is globalisation?

Marshalls Definition Summary

Shift towards a more integrated and interdependent world
economy
1n the 1980s, the word globalisation was a jargon, however
nowadays it is used commonly so much so that it has become
clich.
It all depends in what context are we using the word. Etc
2

For an individual country, what are the likely advantages and

drawbacks that come with globalisation?

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CHAPTER 1: Perspectives on Globalisation and International Business

3
How can an international business use globalisation trends to
its
advantage? What problems can globalisation trends create for
an
international business? Work with these arguments to
establish
competitive advantage internationally?
Example of Toyota
Advantages to a firm
Bigger market global market
outsourcing cut costs - China
Technology enables
( Friedman ) sharing of
knowledge / lower transportation
costs

Disadvantages
Formal and Informal rules
adjustments ( Distant still
matters Ghemewat )
Contagion effect financial
crisis interconnected global company affected by
uncertainty e.g. Tsunami in
Japan production held up for
months

How to establish competitive advantage internationally?

Tutorial Questions
1

The world is flat ( Thomas Friendman, 2003 ). Is it?

a. Define globalisation and assess the trends towards and
against
globalisation
( 10 marks )
Define globalisation refer to above notes
Assess the trends towards globalisation Friedman
Assess the trends against it - Ghemewat

the

b. Assess the role of national government intervention and

multilateral
organisations like the IMF and World Bank in
globalisation process.
( 10 marks )

National governments engage in trade agreement

Singapore govt has trade agreement US, India, China, Asean, EU,
Australia, NZ, Chile, S.Korea + together with IMF + World Bank
opening up markets multilaterialism flatter world ( support
Friedman )
discuss in other chapters.
c. Use examples to illustrate your points

M.Nageb

( 5 marks )

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