globalEDGE Blog - By Tag: globalization

Sports play an important role in the lives of millions of people worldwide; they bring people together, they provide entertainment and exercise, and, often overlooked, they’re an engine for an extremely high-grossing industry. Globally, the sports industry has been estimated to be worth over $620 billion. Over the last 20 years, major sports leagues in the U.S. and Europe saw their respective clubs/teams grow their annualized revenue by about 7 percent, a performance matched only by the healthcare and education service sectors. One such league with a pronounced affinity for high-grossing activity is the NBA. The NBA has seen more profitability than any other league in the past few years, mainly due to its effective globalization to regions like China and Africa.

In today’s market, consumers are offered a variety of instantly available products from across the globe. The sourcing of production across nations and within borders has allowed this globalization to be efficacious – effective supply chain and logistics being the main component to this success. When COVID-19 appeared, the supply chain’s pre-existing fundamental issues were exacerbated; now, this crisis is powering a retreat from globalization, similar to the effects of the 2008 financial crisis.

As technology continues to advance and phase itself into many aspects of our lives, the discussion of digital currencies being used by central governments has been brought to the table time and time again. With countries like China already deciding to implement a digital currency through their central government, pressure has been brought on to other large forces of the global financial sector as to whether or not they will do the same.

This blog post is written by Cameron Levis

Over the past few centuries, the globalization of business and commerce has been happening rapidly. But in the past few years, and especially in 2020, the narrative is far different. With increasingly isolationist policies from the government of the United States, falling trust between the U.S. and other nations, and the coronavirus pandemic, 2020 has been a year in which globalization has decelerated for the first time in decades. It has been a year in which the international business environment is a more complex and tiresome world to explore than at any time in recent history.

If you are unfamiliar with the social media app TikTok and how they make money, check out my blog post from this past February.  Since that point, TikTok’s platform has continued its ascension into the mainstream and the company has experienced rapid growth in active users across the world.

As cultures collide, people are becoming more tolerable of changes and foreign ideas. During the past few decades, the variety in every aspect of life has been increasing, especially in the food industry. People are becoming more adventurous and willing to try different tastes and spices. However, some of these so-called "authentic" restaurants are not as authentic as they may seem.

As technology advances and connectivity increases, countries are closer to each other than ever. Economically, trade blocs have increased partnership among countries and encouraged production specialization. Politically, countries are moving towards a free market and competing for additional foreign investments. Recently, however, these trends seem to be going in a slightly different direction. Governments are encouraging more domestic investments and developments. A stronger sense of nationalism is developing while the term "globalization" now has a negative connotation to some audiences.

There are about 7,000 different languages spoken around the world. These languages are more than just a form of communication but instead represent different cultures, traditions, and identities. They are an inseparable aspect of people's lives. Especially in today's society, bilingualism or even multilingualism is very common due to close proximity to other countries with different languages and an increased desire to acquire such skills. Below are some advantages of being multilingual:

Over the past several decades, many countries in the Middle East, Asia, and South America have experienced unprecedented growth. Reduced restrictions combined with increased globalization sparked interest from the worlds largest corporations and investors. Numerous Fortune 500 companies are opening international headquarters for better reach and lower production costs. Business hubs are shifting locations from the West to a better balance across the world. Read below for details on several specific countries and cities.

It is not easy for a company to expand internationally and achieve success at the same time. So, what is it about Apple, Google, Amazon, and global companies that make them the successful international businesses that they are today? How have these companies mastered their global marketing strategies and expanded beyond their initial customer bases? There are several traits that distinguish companies with accelerated global growth from smaller local companies.

Popularized by recent ride- and accommodation-sharing platforms, the sharing economy has experienced significant growth and demonstrated its potential for international scalability. The implications of this new economy are predicted to disrupt a variety of business models and industries, ultimately challenging the way we define consumption. Topics to consider include factors driving growth, potential industry risks, and future trends set to affect the way consumers capture value.

This is the first post in a five-part blog series focused on the consumer products industry.

This month’s blog series will provide an overview of the consumer product industry and its future outlook, and then we will analyze the industry by region: North America, South America, Asia, and Europe. By the end of this week, these blogs will offer you a thorough summary of what’s happening in the consumer product industry and emphasize the importance of the industry in the global market.

Many companies seek growth opportunities through integrating either vertically or horizontally with other companies. Vertical integration is a strategy where companies expand their business into their production chain (backward integration) or distribution path (forward integration), and these are generally achieved by M&A or internal growth. While horizontal integration is when a company acquires or merges with another company on the same level of the value chain, in other words, a competitor.

Globalization created a platform for the world’s people, firms, and governments to become more integrated. It enhances the networks between countries and creates more opportunities. When globalization first began, the anticipated economic theory suggested that regional inequalities would diminish as poorer countries would attract investment more than the rich countries. However, we see inequalities between many countries and within many countries.

Universities play a central part in initiating and facilitating global learning. The Centers for International Business Education and Research (CIBERs) were developed to help provide guidance and tools for competitiveness in an international environment. There are seventeen CIBER schools established across the United States, Michigan State University being one of them.

While globalization itself is not reversing, according to the Financial Times, it has “definitely lost its dynamism”. In September, trade was interrupted between Asia and the U.S. after South Korean shipping line, Hanjin, filed for bankruptcy. As a result, the company left several dozen of its cargo ships at sea. While it is not being noticed by most people, trade is no longer rising across the globe. Statisticians in the Netherlands found that the volume of global trade was flat in the first quarter, then fell by 0.8% in the second quarter. The total value of U.S. exports and imports fell by over $200 billion last year. So far this year, the amount of trade has fallen by an additional $470 billion. There are a variety of opinions on why the amount of global trade has fallen, but the International Monetary Fund concluded that is it due to the synchronized economic slowdown in both advanced and emerging markets.

There are many reasons that entrepreneurs choose to move their businesses across the world. Whether it be cost savings, favorable market conditions, geographic advantage, risk diversification, or competiveness, doing business in locations across the globe can prove to be extremely beneficial. Ultimately, this decision depends greatly on the specific needs of a business, which can sometimes be volatile. Here are five locations that are currently favorable for those looking to move their business abroad. 

For pro basketball fans everywhere, it comes as no news that last night was Kobe Bryant’s final game as a basketball player for the Los Angeles Lakers. Kobe Bryant has become a household name, not just in America, but globally. Kobe Bryant has ridden the larger wave of global basketball, with a particularly massive (and growing) fan following in China. Sports, and American culture of many varieties have become commoditized and are now consumed in massive quantities throughout the world.

Over the past two decades, China's economic growth has averaged 9.5% and national income has been doubling every eight years. This significant growth can be attributed to China's timely shift from a largely agrarian society to industrial production. However, expansion cannot last forever. The amount of raw materials being produced in China is continuing to increase, but demand for these materials is decreasing. Decreasing demand has contributed to the initial slow-down following China's rapid expansion, but if production itself is not moderated, China's economy could suffer greater consequences.

The mass globalization being realized in business today is drastically changing the way people communicate within a company. Obvious trends in the workforce recently are the acceleration of work processes, globally dispersed teams, and increasing outsourcing of knowledge-intensive work. The boost of globalization represents both an opportunity and significant risk for companies. Now, companies are able to pull in new employees from larger, more competitive international pools, but it is a known struggle for employers to retain these highly qualified workers for the long term. In order for businesses to stay competitive today, thinking and planning for the workplace of the future is imperative. Only companies that are able to communicate successfully will be able to stay competitive in an international market and keep themselves in the running as a potential employer.

In her novel The Travels of a T-Shirt in the Global Economy, author and Georgetown University professor of international economics Pietra Rivoli researches and follows the lifespan of a simple commodity - a t-shirt - across the world, while examining the insights it provides into the markets, power, and politics of an increasingly interconnected global economy. Beginning with a street peddler selling shirts intended for tourists in Fort Lauderdale, Florida, Rivoli investigates the roots and destinations of her t-shirt in an epic that spans the U.S. cotton industry's historical versatility and dominance of international markets, textile production facilities in China, market demands for affordable commodities in the United States and Europe, and ending its journey in used clothing markets in sub-Saharan Africa.

Multilingualism can be an incredible asset for companies that conduct business internationally, helping to bridge the cultural gap when conducting business in foreign countries. As emerging market economies grow and open new markets for businesses, an understanding of the local language can give companies a leg up over their competitors, possibly giving them the advantage needed to be successful in the market. In an article in Entrepreneur, author Ofer Shoshan lists six languages that he believes would be most helpful for English-speaking CEOs to learn in today’s globalized world, as he emphasizes the importance that multilingualism can play in business situations.

Globalization can be defined as the process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade, investment, and information technology. It is not a new concept, and has been present for thousands of years, as people and corporations have been buying and selling goods and services, along with exchanging ideas across long distances.

Globalization is occurring and the world is growing more interconnected and accessible, and as a result it is now easier to travel to other countries. Cultural awareness is increasing, and as a result, tourism is too as people want to experience the culture of other countries. The tourism industry accounted for 9.5% of the world’s GDP in 2013 (U.S. $7 trillion) and currently employs 266 million people worldwide. In perspective, the global tourism industry employs 1 in 11 people on this planet. One aspect related to tourism, that is often not considered, is that with benefits and new opportunities, come new challenges.

With multi-nationals operating across the world, it is relatively easy for these companies to shift activities to countries where the tax rates are significantly lower or nonexistent. In recent years, this has caused significant political and public reactions. Citizens and politicians are looking to ensure that companies pay their fair share of tax. Leaders of the world's largest economies are scheduled to meet to determine whether the ratification of new global tax rules can solve widespread tax evasion problems. However, improving the tax system may prove to be a rather difficult task with large implications for the global business community.

In today’s globalized world where businesses are operating in countries scattered around the world, understanding different languages can be extremely advantageous. Many professionals assume that speaking a common language with other cultures is enough for success. While in fact, spoken language is only 30% of communication. Cultural differences are inevitable in global business environments. Therefore, in today’s business world it is simply not enough to share a common language. To be successful, one must develop a diverse cultural perspective.

Over the past months the Ebola virus has claimed more than 1,300 deaths in West Africa. This health crisis is continuing to devastate people in West Africa, and is also having a shattering impact on the economies of Guinea, Liberia, and Sierra Leone. Early estimates have shown that the economy of these countries have been deflated by 30 percent due to the Ebola virus. The mining and agriculture industries have been hardest hit by the virus outbreak. Domestic economic concerns are certainly not the only problem. In today’s globalized economy, the virus outbreak is affecting international business activity.

The Globalization of the fur industry has given Denmark’s agricultural-based economy the boost it was looking for. Fur is used as a luxurious item for clothing, decoration, comfort, etc. Being home to about one-fifth of the world’s supply of minks, it is no surprise that Denmark is the heart of the global fur industry. With all of the growth in the industry, Kopenhagen Fur has been the leader all along.  The company has used Chinese demand to fuel growth and has focused its innovation on the Chinese consumers, as demand in Europe weakens. With the greatest passion for animal-rights, the Danes have stayed out of the way of Animal Rights activists, and the buyers feel a lot more confident and humane about their purchases.

Globalization has been the result of many different developments. From the increasing ability to ship goods across the world at low rates to moving manufacturing to achieve lower labor expenses, globalization is an entrenched part of the new economy. Another element factoring into globalization, that is not mentioned quite as much but has played an increasingly large role, is that of taxes.

Nowadays, people have more opportunities to move to different parts of the world than ever before, thanks to globalization. Global trade, therefore, is changing with the increasing mobility. A new report says that, while the last era of globalization was driven largely by sourcing low-cost production, the next era will center on the rise of the global knowledge economy.

The most important way to ensure achievement of mergers and acquisitions is to make sure the integration process with the other company is successful. While this may not be the most exciting aspect involved in merging companies together, it is by far one of the most important phases. Companies need to focus tasks on the integration process and make sure not to over-look it in practice.

As Russia prepares to make Crimea part of Russia, other countries have watched from afar and have developed plans to impose economic sanctions on Russia. Government officials from the United States have already signed an order enabling economic sanctions against sectors of the Russian economy. Leaders from the European Union are also considering their options as they meet in Brussels to discuss economic sanctions against Russia. With economic sanctions on Russia looming, the impact on Russia and the global economy remains to be seen.

Technology has shaped our world in almost every way possible. Interaction with it is not only common on a day to day basis, but it is also required to get things accomplished. This simple fact has led to amazing feats and incredible efficiency, but there are also externalities. Technology can be good or bad depending on how it is used and how it is viewed. This is what lies at the core of high frequency trading.

High frequency trading is a relatively new development. Essentially, it is a collection of massive computing power that takes in stock market trading information in order to buy stocks before large orders can be fully processed. This is possible because of thirteen stock exchanging platforms. If a company, mutual fund, hedge fund, etc. places an order for a large block of shares, those shares must be found on the stock exchanges. When this information hits the first stock exchange, it is picked up by high frequency trading computers that quickly go out and purchase that very stock and then sell it to the purchasing institution at a higher price. All of this takes place in milliseconds.

The FBI has launched an investigation into this type of activity to test its legality. Basically what these high frequency trading computers are doing is front running stocks. Seeing orders in the pipeline and having computers that are faster by only milliseconds allows them to make slight profits on trades of others. Repeated millions of times a day, this quickly adds up. The investigation is a question of whether this constitutes insider trading and thus securities fraud. In order to be considered insider trading, the FBI must find evidence that this information is sufficiently out of the public's reach. When dealing with such quick time intervals, this portion may prove extremely difficult. The other finding that could lead to securities fraud is if the FBI can prove that some of these exchanges, especially the slower ones, simply serve as a way for traders to make money without actually serving a true purpose for trading fairly. Again, a difficult task.

The grayness of this issue is the same as many technological problems confronted today; the world’s technology is advancing so fast that laws and legal structures cannot keep up. Because there is no definitive authoritative texts on this matter, it will be tough to legally challenge this practice. The impact this has on the markets of the world is immense and the answers, as of right now, seem to be few.

In today’s globalized world, products are made from components all over the world. The interdependence among countries is more important than ever and international trade serves as the backbone of economic growth prospects. With this interconnectedness comes great risk; however, great opportunity also results.

In what is deemed the last continent for major growth in the fast food industry, several chains are finding that expansion into Africa is going to be tougher than what was once expected. Infrastructure costs, food imports, and meat shortages have led to high prices at many quick serve restaurants across Africa. This has lowered optimism among some fast food executives about the prospects of expansion into the vast African continent, though there are others who believe now is the time for growth, even with the early setbacks.

While most Americans view cities such as New York, Los Angeles, or Miami as truly global cities with a wide variety of different cultures, foreign businesses, and spoken languages, a recently released resource titled "Mapping the Nation" reveals that often over-looked cities and counties throughout the United States actually contain more global connections than one would expect. Presented by the Asia Society, Longview Foundation, and SAS Institution, this resources contains data from over 3,000 counties in all 50 states regarding how globally connected Americans are to the greater international system with regards to economic, demographic, and educational factors.

A topic becoming more and more popular in the business realm today is the differences of Generation Y, otherwise referred to as Millennials, and the rest of the workforce. The needs, wants, and leadership styles of Generation Y are drastically different from earlier generations; this is causing a great shift in the way businesses operate around the world. Generation Y is the generation born between the 1980’s and early 2000’s. Millenials are currently working in the business world and will continue entering for years to come. It is vital for companies everywhere to learn and adapt in order to retain Generation Y employees.

Globalization has been a hot topic for years now and shows no signs of going away anytime soon. When and where globalization started is a matter that is hotly contested to this day. Technically speaking globalization may have begun as early as the trading routes between China and Europe. When looking up the history of globalization many timelines will include this time period and talk about the expansion of global trade from that point forward. Of course, that is not where the starting point is usually considered to be. The more modern definition is usually agreed to be around the 1980’s when globalization really took off.

The trend toward globalization is rising and as globalization's popularity grows worldwide, companies are inclined to develop globally. Therefore, cross-border mergers and acquisitions (M&A) are becoming more fashionable these days as they offer increased opportunities and cheaper alternatives to building companies internally. However, a great majority believe that cross-border M&A is complicated and contains many variables that can lead to business failures.

For decades, free trade has received major support in the increasingly globalized market. of today. To account for the economic effects of free trade, Foreign Direct Investment (FDI) has caught the attention of economists and has become one of the most important components of measuring the economy. Since the Great Recession in 2008, most countries, especially the United States, have been experiencing a huge decline in FDI. However, in certain parts of America, we may see a much needed comeback of foreign investments in the next two years.

Globalization is the worldwide movement to increase the flow of goods, services, people, real capital, and money across borders in order to create a more integrated world economy.  Previously, I wrote of international trade in antiquities, but let take a look at trade during antiquity and how it has affected today’s economy.  Trade networks have always followed the trends of politics, economics, technology, and most importantly culture.  Exotic luxury goods demanded by elites encouraged trade to gain momentum: Incense Route, Silk Road, Amber Road, Spice Route, and Tea Route.  Soon, economics became so interconnected that World Systems became dependent on each other.

When looking at the composition of the world over the past years, it is not hard to see that the world is becoming increasingly interconnected. If you look at a basic product, it is more than likely that the product you are looking at is made from components in various parts of the world. This increasing economic integration called globalization is having profound effects on many countries. Advances in transportation and telecommunications, including the rise of the Internet, are major factors contributing to globalization that have generated further economic interdependence and universal cultural activities. However, these are certainly not the only factors contributing to globalization. Today, I will show you how the entertainment industry has been a major driver of globalization.

Have you been exposed to a company advertisement or website that translated their message word-for-word and missed the mark, instead of focusing on the marketing translation? Google Translate does this for many websites because many companies do not have a specific website for a particular language. This is a huge problem as businesses try to enter new foreign markets. Their messages do not communicate the correct message because language is not based purely on word translation; it also involves cultural meaning, context, style, and connotation. Localization and a global marketing strategy are becoming key drivers for companies as globalization expands. Getting your message across in a word-for-word translation is the wrong approach, but transcreation can be the solution.

For years, Africa has been viewed as a continent stricken by poverty with practically no chance of achieving sustainable economic growth. Just over 12 years ago, The Economist even labeled Africa as “The Hopeless Continent” plagued by war and disease.  However, that paradigm is beginning to radically change. Over the past decade, Africa has been the second-fastest-growing region in the world with an annual growth rate of 5.1 percent. To the surprise of many, over 500 African companies have annual revenue of $100 million or more. How has Africa been able to turn around its fortune in such a short period of time? Many believe this economic turnaround can be attributed to greater political stability and reforms that have unleashed the private sector in many African countries. Though, the main source for this economic resurgence has actually been globalization as you will soon see.

While we at globalEDGE have been talking about how the globalization of the media industry has difficulties for many involved in the industry, there is another way that this new trend impacts the industry: it is changing the business model of these companies forever.

Since many of these companies work with the internet and are focused primarily on providing their services that way, they are much smaller, more nimble, and entrepreneurial than their traditional counterparts. One simple way to confirm this is to look at the employees used by each firm.  Pandora and Netflix have around 500 and 2,000 employees respectively. That is far less than 126,000 employees that Comcast uses. To prove this isn’t a size issue, Google only has around 50,000 employees!

It can be argued that there is nothing more universal in the world than music. Music has brought people and cultures together from the beginning of time. To many people and cultures, music is an important part of life—an art form that enhances life’s appeal. Today, music is not only an art but also an extremely important industry in the global economy. Just as globalization and technology have changed the course of many other industries in the world, these two factors have both dramatically transformed the music industry for better or for worse. Consumers, artists, retailers, record labels, and businesses have all been affected by these changes. Now the question is: “Has globalization created a sustainable shift in the music industry and how have these changes affected the art of music?”

One third of the world’s population is now connected to the internet, a surprising statistic considering where we started not too long ago.  As more people become connected, consumer consumption patterns around the globe are changing. The mediums people use to consume content are changing as well, caused by cultural differences as well as different regulations across countries. Many regions, such as Scandinavia and India, are a much different market than the United States. We will explore these differences by analyzing how they affect consumption patterns and their impact on business in a global context.

It is no secret that America tops the list of fattest nations. In fact, it is one of the largest stereotypes facing the people of the United States. Yet for the first time, competition has emerged from other nations like Mexico, New Zealand, and Chile and it may even be due to U.S. markets. Both fast food and drug markets are spreading globally, and consequently, so is obesity. With obesity, of course, come related health issues, especially diabetes, which is where the pharmaceutical companies swoop in to save the day while churning out incredible profits.

Globalization has provided the world economy with an enormous amount of wealth and expansion since it first began in the 1970’s. It slowly progressed throughout the 1980’s up until the fall of the Berlin Wall, which led to a doubling of the global free-market labor force. Since then, the Dow Jones Industrial Average has climbed from 800 in 1979 to over 13,000 by 2007. The era of financial globalization went into effect in 2003, when financial services accounted for 30% of stock market earnings. For the past 3 to 5 years though, we have seen a different trend in globalization and the free flow of capital across borders.

Since its inception in 1994, globalEDGE has been dedicated to utilizing its vast amount of resources to connect international business professionals worldwide to a wealth of information, insights, and learning resources on global business activities. As a key function of this goal, the online course modules in globalEDGE’s reference desk have existed since 2007 to provide interactive educational tools for use in the classroom or in executive training. These modules focus on issues relevant to international business and include a case study or anecdotes, a glossary of terms, quiz questions, and a list of references for further knowledge current topics. Partially funded by a U.S. Department of Education Title VI B grant, the modules cover several subjects that relate to international business, such as “Doing Business In” specific regions and tutorials on exporting.

There are certain facts of life and globalization is one of them.  But with completely integrated social, economic and structural systems comes both a profit and a price.  The phenomenon has occurred in three waves across modern human history: beginning around 1870 and ending at the start of World War I, reviving in 1950 due to multiple trade agreements and ending in 1980, and finally establishing permanently at the fall of the Berlin wall in 1989.  But as the flow of goods, services, currency, technology, legislation and human capital increase across national boundaries, there have been a number of costs (both apparent and latent) that a variety of stakeholders have had to bare.

As globalization affects international business in almost every way possible, it also affects education to great extents. International education is on the rise as the demands of a globalized world bring the need for students to understand broader issues around the world. Students, the future business leaders of tomorrow, have become more mobile than ever in search for global experiences and job opportunities overseas. In past years, many students moved abroad to study in developed economies such as the United States and United Kingdom. However, that trend is starting to shift as many people believe the booming economies in the East offer more job opportunities than the West.

In 1983, Professor Theodore "Ted" Levitt of Harvard's Business School announced that globalization had arrived, and before long global companies would be selling products and services in similar ways all over the world. In spite of Levitt's prediction, only a limited amount of truly global brands exist in today's business world, although markets are undeniably in an age of economic globalization. The reason behind this stems from the immense amount of forces that provide challenges to brands wishing to branch into global markets, of which a select number of firms have overcome.

In 1983, Ted Levitt of the Harvard Business School made a bold prediction; Globalization was coming to fruition. Products and services were soon going to be sold everywhere on earth, not just domestically, creating a truly global brand. Since then, time has proven Ted correct.

Since the mid-1980s, emerging markets have grown faster than advanced economies. When you think of how hard it once was for smaller economies to grow and globalize, this is an amazing feat. Looking at the current situation can give many aspiring economies hope to grow successfully.

In recent years, especially after the financial crisis, there has been a fierce debate over the level of executive pay, especially in Europe and the United States. According to a Towers Watson study of 225 Fortune 1000 companies, the median total direct compensation increased only 5.6% for CEOs in 2011, compared to a 14.5% increase in 2010. It seems as though the recent outcry is having an effect. Though compare these numbers to Forbes 2011 study on the 500 biggest U.S. company’s CEOs and their pay, and you will see a different story. U.S. CEOs received a collective pay raise of 16% in 2011, compared to 3% for the average American worker. It is interesting to see the vast differences not only on the level of pay, but especially on how the culture of a certain country affects the debate.

To compete in the global economy, a country’s workforce must be knowledgeable, well-trained, and understand the complexities as well as the benefits created by globalization. It’s true that accomplishing these objectives is easier said than done but in our hands lies a great tool to assist us with these goals—and this great tool is simply education. Just as globalization has changed business around the world, it is also changing education. A common trend in higher education policy is the internationalization of education to help students live, work, and be successful in today’s interconnected global economy.

As technology and communication capabilities increase, it may be safe to assume that the world is becoming more connected with many countries becoming integrated to the world economy. This basic idea is called globalization and with globalization comes many benefits such as new opportunities in emerging markets and increased access to international trade. To many people, globalization is making the world flat meaning businesses can collaborate and operate across borders without regard to geography or distance in today’s modern technological and political landscape. Many businesses are beginning to realize the opportunities abroad made possible by an increasingly connected world. However, is there a way to measure how connected the world really is?

Social media has come a long way since its inception. It began as a simple way for communication as a user would send a basic email to another computer close by. Now, social media has transformed how people consume news and communicate with each other around the world. It has also empowered the masses, which before never had an outlet or an easy way to communicate and organize ideas. Before, top media companies controlled what issues would be covered, and the view that would be expressed. With social media, this idea is turned upside down. Millions of people with the same view can determine what is important and bring attention to the issue. Examples of this include the revolution in Libya, Egypt, Syria, and the Occupy Wall Street movement.

In today’s technology driven society, web browsers are very important as people spend many hours using the internet for business needs or gathering information from sources around the world. A few weeks ago, Google Chrome became the most popular web browser worldwide for a single day, edging out the long-standing dominance of Internet Explorer. Claiming the top spot for only one day may not seem like a noteworthy event, but how Google Chrome was able to take the lead is very important in terms of international business.

It is a fact that we live in a global world where country economies are closely intertwined. Total world trade is in the trillions, many of China's exports end up on Wal-Mart shelves, and a few months ago when the Japanese earthquake and tsunami struck the Asian country, supply chains were disrupted worldwide. Moreover, technology doesn't take a break and new innovations are presented to the market daily. Yet, the world is still in a financial crisis and the need for more world-class business leaders is growing. This in turn puts more pressure on universities to improve their business programs.

The Director of the International Business Center at Michigan State University – Tomas Hult – just published the new version of the Total Global Strategy (TGS) book with George Yip. TGS has been the market leader both in multinational corporations’ board rooms and in executive MBA programs for years. From General Motors using the TGS framework to restructure their Asia operations to Michigan State University using it in its world-leading executive training programs in supply chain management to being rated as a top 30 business book previously, Total Global Strategy is the authority on practical and sophisticated global strategy development and implementation. TGS can be bought on Amazon and at all major booksellers.

With unemployment in America still hovering near 9 percent, many Americans are upset that companies are offshoring jobs to countries such as China. However, according to a new analysis by The Boston Consulting Group (BCG), there is a “manufacturing renaissance” on the United States’ horizon.

I was first introduced to cultural intelligence (CQ) in my international management class this past year, and was highly intrigued by the topic. CQ is a person's capability to function effectively in situations characterized by cultural diversity. When the opportunity rose to read The Cultural Intelligence Difference, I jumped at the chance. Dr. David Livermore wrote the book to essentially give the everyday person, whether you are a teacher, doctor, entrepreneur or CEO, strategies to increase your CQ.  Here is a little excerpt of an example from the book that may apply to you:

Globalization is becoming increasingly important for businesses all over the world. Not only is it important to expand into new markets, but it is important to localize enough to be accepted while still keeping your brand consistent worldwide. Corporations are beginning to see how difficult this balancing act can be. Expanding into new countries can lead to enormous profits, but it comes at a much higher risk.

Many international business leaders treat it as a foregone conclusion that the world is flat.  Past posts on this blog have stated that globalization is an unavoidable feature of the current world economy which cannot be ignored by businesses.  Do the statistics support these conclusions?  A recent blog post for The Economist provides numbers that appear to question how prevalent the global economy really is. 

As much of the Eurozone has struggled to make ends meet during the recession, Germany has embraced global importing and exporting through a variety of thriving industries.  The country’s 3.6% growth in GDP over the last year can be attributed to a variety of factors in a time when the rest of the Eurozone barely topped 1% growth.  During this same time period, exports from Germany jumped by 21.7% including a 17% increase in sales to China. 

In a survey on globalization conducted by Ernst & Young, the majority of companies responded that diversity of gender, ethnicity, and experience are important components of a successful management team.  These respondents stated that financial performance and overall reputation would be improved by incorporating diversity throughout an organization.  Despite their own advice, many upper management teams are composed exclusively of people from one country.  In order to capitalize on opportunities in emerging markets, it seems beneficial to have managers with first-hand knowledge of business around the world. 

In the increasingly global landscape, globalization has become a goal for many businesses large and small. Free trade agreements, along with technology advancements have encouraged the globalization of companies. Trade is much easier and quicker than it used to be, but that does not eliminate the challenge that globalization presents to businesses. Small businesses that cannot afford to hire a foreign marketing agency sometimes struggle with the globalization and exporting process, luckily it can be done through careful planning and utilization of free and readily available resources.

Think about it, when the economy is in a downturn, what tech startups can find funding to develop a new business model? The innovative companies of course! You know, the ones with different ideas that stray away from the normal? It’s these innovative companies that strive in this harsh economic atmosphere, and that is just what happened in the recent economic downturn. The economy weeded out the basic, cookie cutter businesses and unearthed the gems beneath. Some of these gems include the likes of Spotify, Twitter, FourSquare, and Tesla Motors. All four of these companies have a stake of their business abroad too which means that these successful tech startups understand the importance of going global. How have they done business abroad? Glad you asked!

There’s no question about it, businesses are globalizing, and those who aren’t are getting left behind. The question is, are executives making the necessary changes to keep up with the changing business environment? Maybe not.

France has recently made great strides to increase its exports to Latin America. With globalization taking the international business world by storm, many French companies have begun to look for opportunities outside of its close neighbors in Europe. This has caused them to turn to Latin America. This means more business opportunities for French companies and more jobs for South Americans.

When you think of economic globalization, you think of the integration of national economies into the international economy through trade, foreign direct investment, capital flows, and the spread of technology. But one very important one that isn't thought of too much is migration. In the past it was almost unthinkable to leave your homeland just for a job overseas, especially just to look for one. Now it is becoming commonplace, especially with the high unemployment rates seen in countries such as the United States, United Kingdom, and Spain (the latter of which is a whopping 19.9 percent!). Meanwhile in other developing economies, especially in Asia, the rates area much more respectable. The unemployment rate in Hong Kong is 4.6 percent, in Australia 5.1, and in Singapore only 2.2 percent of the people are out of work.

Trends in the Aerospace and Defense Industry have been shifting lately; what was once a primarily domestic industry has started to become global in nature. As highly populated nations such as China and India become more open to global markets, international suppliers will seek to fill their demands. What are some of the things we can expect to see from the global Aerospace and Defense market in the near future?

As the world is becoming more globalized, there has been a change towards internationalization in the food and beverage industry as well.
 
Traveling abroad for business is an essential part for many professionals. Also, since business men and women from different parts of the world work together on many occasions, it is only natural that they share and spread different cultures. This is very strongly pronounced in the way taste preferences around the globe have changed.

Ready for a pop quiz? What do these things have in common: Punk rock, gyro sandwiches, blue jeans, Sesame Street, and yoga.

Give up? The answer is…Globalization.

Unfortunately, the global economic crisis was not biased when it struck industries across the world.  Driven by high-rolling, high-ego aficionados, the art industry was impacted more than one would have expected.  With artworks ranging from just $500,000 to well into the millions of dollars, buyers who take interest in these unique items also felt the burn from the instability of the world markets and significant decrease in personal wealth.  As a matter of fact, in 2007 the art market was valued at $65 billion, down from $113 billion just five years before.  Today it is estimated to be as low as $50 billion.

Business and Africa are not always two words you hear in the same sentence. However, with globalization being such a huge component of today’s business, it is important for companies to always be on the lookout for new places to expand. More and more things are being exported and imported these days. It appears nearly impossible to do business without crossing a border into another country. One country that has recently come onto the international business radar is South Africa.

With a rapidly growing population and a rising middle class, South Africans are seeking out many of the same products and brands that other developed nations have become accustomed to. This means there is an opportunity for businesses to enter and prosper in this expanding market.

A recent report done by Small Business Trends highlights the top 10 global small business trends to look for in 2009:

1. Disruptive innovation will be both the coolest and hottest new growth strategy in 2009 because it will transcend all boundaries and transform businesses.

Check out this great lecture by Thomas Friedman, the author of "The World is Flat" and "Hot, Flat, and Crowded."  It's a great example of tying together the phenomenon of globalization with what I think is the ultimate reason for the changing media landscape.  Every good business idea starts with inspiration, and Thomas Friedman is a deep thinker that also an excellent communicator.  It's long, but definitely worth watching.

Like all good things, globalization has some negative side effects. The current outbreak of swine flu highlights the ability for diseases to be transported quickly around the world, primarily because of how interconnected the global economy has become. It is important for both governments and international business people to arm themselves with the proper knowledge in order to be prepared and put in place the best safeguards for such an event.

The author of "Go Global to Win" and "Global Business Guide" explains why now is as good a time as ever to go global.

You may be missing out on a new breed of technology that some experts are heralding as the computing method of the future. Already, many companies use a system where software is offered as a service rather than a good. You don't buy a box with a computer program, you use an online application, hosted elsewhere. The same concept that made these technologies so explosive is also hitting the hardware world.

Could the winds of globalization be changing course? It’s probably too early to tell, but there are some pretty striking statistics that suggest the global trade climate may be changing.

The global economy has never before been so tightly interwoven between countries, and the current recession is clearly anything but typical. As consumers around the world tighten their belts, producers naturally trim their output. This scenario is playing out in nearly all countries, but the rate of change between exports and imports varies greatly from country to country. The magnitude and direction of these changes could have drastic implications for the future of globalization.

Check out this excellent video synopsis of the new book, "Globality," by Harold Sirkin, James Hemerling, and Arindam Bhattacharya. The subtitle, "competing with everyone from everywhere for everything," gives you a good clue about how the book views the future of global business. The bottom line is that western businesses must adapt in order to stay relevant globally, because there are lots of challengers from emerging markets that are changing the rules of the game.

A while back I wrote a post on the recent upsurge in piracy. At the time, a Saudi supertanker carrying $100 million in crude oil had just been commandeered, and the global shipping industry was unwillingly thrust into news headlines worldwide. In the end, the tanker was released for an undisclosed ransom, but the incident served as a catalyst for discussions on how to deal with the threat of piracy.

Navies from around the world have responded by sending ships to the coast of Africa to stave off attacks and hunt down the buccaneers. Even Japan sent forces to the region in a rare, post-WWII military action. The pirates are operating in an area larger than 1 million square miles however, making it nearly impossible for these forces to ensure the safety of shipping vessels. Shipping companies, consequently, must address the question of how they will manage the risk of piracy.

The world is shifting at an incredible pace. This video provides some shock value by showing just how dramatic some of these shifts are. Enjoy!

If you still think outsourcing, caused by globalization, is the biggest threat to the American labor market: think again. According to a new book by Colombia Business School professor Bruce Greenwald and historian Judd Kahn, aptly titled Globalization, technology, along with other miscellaneous productivity measures, are much more likely to result in job cuts than shipping jobs off to China and other developing countries. The authors cite statistics from the Commerce Department, showing that between 2000 and 2006 only 35% of lost jobs were replaced by foreign labor. Contrast that to the 65% that were lost to productivity increases.

India + China is a third of the world.  But what about India vs. China?  Watch this brief video from CNN that compares some of the key similarities & differences between the two most populous countries:

The latest event in a recent upsurge in pirate activity off Africa’s coast was also the biggest attack yet. A Saudi Arabian supertanker carrying $100 million worth of oil was commandeered by pirates 450 nautical miles away from the Kenyan coastline. This attack was unprecedented in both the size of the target and its distance away from shore, and as such represents a higher level of boldness on the part of the pirates.

The shipping container is a simple tool that has drastically transformed the face of international business. There’s not a whole lot too it, really. It’s just a big box with some paint and doors. But no other object has been at the front-lines of globalization quite like shipping containers. To this end, BBC has undertaken a year-long project in which they are tracking the contents and movements of one container as it travels from port to port. It recently dropped off a load of fine whisky in Shanghai, and has since been loaded up with clothing bound for the U.S.

The answer is NO, but New York City is the closest! At least, that's what a recent report, The 2008 Global Cities Index, claims. This report is result of a research study conducted by The Chicago Council on Global Affairs, A.T. Kearny, and Washington Post.

60 cities, including the world's biggest & most interconnected cities, were ranked based on the dimensions of Business Activity, Human Capital, Information Exchange, Cultural Experience, and Political Engagement. Some of the highlights are provided below, but read the full report to find out which cities are bearing the brunt of the world's financial meltdown, where is crime the highest, and where is climate a major concern.

The globalEDGE website is run by MSU-CIBER, which is one of 31 CIBERs across the U.S. CIBER stands for Center for International Business Education and Research. Another CIBER at George Washingon University in D.C. recently held a discussion on the origins and implications of the current global financial crisis. It was a very interesting panel discussion with some extremely bright individuals offering a unique perspective not influenced by the mass-media. There is a video you can watch here: http://business.gwu.edu/financialcrisis/. Be sure to check it out!

Last week I attended a luncheon hosted by the Global Business Club of Mid-Michigan, which focused in part on the importance of free trade. Erik Magdanz of the U.S. Department of State was the keynote speaker, and he had sparked my interest in some current free trade issues. One statistic in particular caught my attention – in 2006, countries that the United States has free trade agreements with accounted for only 7.5% of world GDP, yet they accounted for 42.6% of U.S. exports.

Do brands create nations, or do nations create brands? That's a thought provoking question in today’s increasingly global economy. Consumers – regardless of location – determine the fate of every brand. Similarly, the global rise of commerce and transportation in the past few decades has also led to a rise in immigrant workers working on these brands in every part of the world. The article on brandchannel.com that discusses the lessons learned from the list of 2008 best global brands points out that the phrase “Made in ____” should really be expanded to “Made in ____, by ____” – e.g., Made in Italy, by Vietnamese!