The forces driving and evaluating the impact of globalization.

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Explain the forces driving and evaluating the impact of globalization.

 

Identify the major components of international business management.

Values:

Carry out effective self-evaluation through discussing economic systems in the international business context.

Case study

Please read Case 5: Woolworths Corporate Responsibility Strategy available in your e-book (International business: Competing in the global marketplace (13th ed.), at page no.632, and answer the following questions:

Assignment Question(s):

1. What challenges do you think a company like Woolworths Group is facing when developing and implementing a companywide corporate social responsibility strategy that considers more than 205,000 employees, diverse interests, and stakeholders? Discuss. (Minimum words: 400, Mark:2)

2. Woolworths Group is trying to reduce its carbon emissions or footprint by 10 percent. Based on where we are as a world, is 10 percent enough of a reduction? Perhaps global warming is not real, albeit the vast majority of scientists clearly suggest it is; what do you think? Give logic in support of your answer.

Sample Solution

Globalization, the increasing interconnectedness of the world’s economies, cultures, and societies, is driven by several key factors:

 

 

Technological advancements: Rapid advancements in transportation, communication, and information technology have facilitated the movement of goods, services, and people across borders.

 

Economic liberalization: The reduction of trade barriers, such as tariffs and quotas, has created a more open global marketplace.

 

Political changes: The collapse of the Soviet Union and the rise of democratic governments in many countries have led to greater economic and political integration.

  • Cultural exchange: The exchange of ideas, customs, and traditions across cultures has fostered a more interconnected world.

 

The impact of globalization can be evaluated in terms of its effects on various aspects of society, including:

  • Economic growth: Globalization can promote economic growth by increasing trade, investment, and competition. However, it can also lead to job losses in some sectors and increased inequality.

 

 

Cultural diversity: Globalization can promote cultural diversity by exposing people to different cultures and traditions. However, it can also lead to cultural homogenization and the erosion of local cultures.

 

Political stability: Globalization can promote political stability by fostering cooperation among nations. However, it can also exacerbate existing tensions and conflicts.

  • Environmental sustainability: Globalization can have both positive and negative effects on the environment. It can promote sustainable development by encouraging the adoption of environmentally friendly technologies, but it can also lead to increased pollution and resource depletion.

Major Components of International Business Management

International business management involves a wide range of activities, including:

  • International marketing: The process of promoting and selling products and services in foreign markets.
  • International finance: The management of financial resources in an international context, including currency exchange, foreign investment, and risk management.

 

International operations: The management of production and distribution activities in foreign countries.

  • International human resource management: The management of human resources in an international context, including recruitment, training, and compensation.

 

Self-Evaluation: Economic Systems in the International Business Context

Economic systems play a crucial role in shaping the global business environment. There are three main types of economic systems:

 

Market economy: In a market economy, economic decisions are made primarily by individuals and businesses, with limited government intervention.

 

Command economy: In a command economy, economic decisions are made by the government.

 

Mixed economy: A mixed economy combines elements of both market and command economies, with the government playing a role in regulating the economy.

 

Understanding the economic systems of different countries is essential for businesses operating in the global marketplace. It can help businesses make informed decisions about where to locate operations, how to source inputs, and how to market their products and services.

 

Case Study: Woolworths Corporate Responsibility Strategy

Question 1: Challenges Faced by Woolworths

Woolworths Group faces several significant challenges in developing and implementing a companywide corporate social responsibility (CSR) strategy:

  • Scale and complexity: As a large multinational corporation with over 205,000 employees, Woolworths must coordinate CSR initiatives across a vast network of operations and stakeholders.
  • Diversity of interests: Woolworths’ stakeholders, including employees, customers, suppliers, and communities, have diverse interests and expectations. Balancing these competing interests can be challenging.
  • Global supply chain: Woolworths’ supply chain is complex and global, making it difficult to ensure that its suppliers adhere to ethical and sustainable practices.
  • Changing expectations: Consumer expectations and societal values related to CSR are constantly evolving. Woolworths must adapt its CSR strategy to meet these changing expectations.

Question 2: Carbon Emissions Reduction Target

A 10% reduction in carbon emissions is a significant step, but it may not be sufficient to address the global climate crisis. The Intergovernmental Panel on Climate Change (IPCC) has warned that limiting global warming to 1.5 degrees Celsius requires a rapid and substantial reduction in greenhouse gas emissions. While reducing emissions by 10% is a positive step, more ambitious targets are needed to achieve a sustainable future.

 

It is important to note that the scientific consensus on climate change is overwhelming. The vast majority of climate scientists agree that global warming is real and primarily caused by human activities. Denying the existence of climate change is not supported by the scientific evidence

 

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