Chapter 1: Globalization
Table of Contents
Learning Objectives
Chapter Summary
Chapter Opening Activity
Chapter Outline
Opening Case: Detroit Bikes
Introduction
What Is Globalization?
Did You Know Video Clip: Did You Know? Trade Tripled for the United States as a Percentage of
GDP
The Emergence of Global Institutions
Drivers of Globalization
Role of Technological Change
The Changing Demographics of the Global Economy
The Globalization Debate
Managing in the Global Marketplace
End-of-Chapter Resources
Critical Thinking and Discussion Questions
globalEDGE™ Research Task
Closing Case: How the iPhone Is Made: Apple‘s Global Production System
Hill, Global Business Today, 12e
Chapter 1 Instructor‘s Manual
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Continuous Case Concept
Additional Readings and Sources of Information
Learning Objectives
1-1 Understand what is meant by the term globalization.
1-2 Recognize the main drivers of globalization.
1-3 Describe the changing nature of the global economy.
1-4 Explain the main arguments in the debate over the impact of globalization.
1-5 Understand how the process of globalization is creating opportunities and challenges for
management practice.
Chapter Summary
This opening chapter introduces the reader to the concepts of globalization and international
trade and provides an introduction to the major issues that underlie these topics. The components
of globalization are discussed, along with the drivers of globalization and the role of the General
Agreement on Tariffs and Trade (GATT) and its successor the World Trade Organization
(WTO) in lowering trade barriers. The influence of technological change in facilitating
globalization is also discussed, along with the role of multinational firms in international
business.
The chapter also describes the changing demographics of the global economy, with a special
emphasis on the increasingly important role of developing countries, especially China, in world
trade. This discussion is complemented by a description of the changing world order, which was
brought on by the collapse of communism in Eastern Europe and republics of the former Soviet
Union. The chapter ends with a candid overview of the pros and cons of the trend towards
globalization.
Chapter Opening Activity
Conduct this activity during the first week of class, as an icebreaker.
After students introduce themselves, ask them what their aspirant professional job will be after
graduation. Organize the responses into groups on the whiteboard: accountants, supply chain
managers, ERP managers, business owner or entrepreneur, marketing and sales reps, etc. Then,
ask what additional skills they will need to do those jobs with international customers, suppliers,
and co-workers.
The idea is to help students understand they are unlikely to be successful unless they understand
globalization and develop cultural competencies. Skills they might name include: comfortable
with rapid change; can understand national cultural differences; can work in diverse cultures; can
adapt to diverse management, leadership, and participation styles; can understand differences in
intercultural communication; can build relationships, be a lifelong learner, and others.