MN1178: The phenomenon of globalisation has given rise to major benefits and costs for countries and companies in the contemporary world economy: BUSINESS AND MANAGEMENT IN A GLOBAL CONTEXT Assignment, SIT, Singapore

1. ‘The phenomenon of globalisation has given rise to major benefits and costs for countries and companies in the contemporary world economy.’ Discuss this statement by considering the following questions:

a) In recent years, we have seen a slowing down of globalisation. Why is this, how has the pandemic and economic crises of 2020–21 contributed, and what are the most recent trends impacting on international businesses?

b) What do supporters of globalisation see as its major benefits for countries and international firms? What do critics see as the major drawbacks and disadvantages of globalization for international firms and countries? Does the pandemic accentuate this debate?

c) Thomas Friedman in his book ‘The world is flat’ argues that globalization is flattening the world so that every nation will eventually be part of the global marketplace and production process.

However, Ghemawat’s influential article ‘Distance still matters, argues against Friedman’s flattening argument; that this is an incorrect assumption and a dangerous one. Join in this debate and justify your answers.

2. Businesses interact with the political, economic and legal systems indirectly, yet business people need to understand and how these systems shapes commercial rules and regulations for businesses.

a) Describe, using examples, the major political institutions an international business needs to take into account in designing its strategy.

b) Legal system represents the formal rules that regulate behaviour along with the processes by which the laws of a country are enforced. Discuss some of the challenges international businesses would encounter when operating in a foreign country.

c) Why are formal institutions important for:
i. Developing economies?
ii. International trade?
iii. Multinationals?

3. Informal institutions, particularly culture and ethics, are highly influential factors that shape the conduct of international business.’ Discuss this proposition as follows:

a) Outline two major theories of culture and assess their relevance and limitations when applied to the conduct of international business. (10 marks)

b) Describe what is corporate social responsibility (CSR), and assess the main challenges that CSR seek to deal with. Then critically assess the main approaches to CSR that international business can take.

c) Read *Doh’s article “Coping with corruption in foreign markets”. Why do you think corruption is so widespread across countries in international business? What actions can be taken to lower the corruption levels in international business?

4. ‘International trade needs to be both understood and regulated.’ In light of this statement:

a) Describe and assess strategic trade theory and Porter’s diamond of national competitive advantage. Read *Davis & Ellis “Porter’s competitive advantage of nations” to help you with the answer.

b) Outline and assess whether the Dunning OLI framework explains satisfactorily the occurrence of foreign direct investment. Present the benefits and limitations of this framework.

c) What is protectionism, and what techniques do countries adopt to protect themselves from the adverse effects of globalisation, and the behaviour of international businesses and other countries?

5. Multilateral Organisations and Regional integration shape the strategy and operations of an international business. Discuss this statement under the following headings:

a) Watch this video ‘Economic integration between countries’ www.youtube.com/watch?v=4HjN1FPYXaY describe the major types of regional economic integration. Provide illustrative examples (5 marks)

b) The WTO is the main multilateral organization making rules for international trade. Discuss the role of WTO. What are the main criticisms often directed against the WTO and how would you respond to these criticisms?

c) What are the opportunities and challenges experienced with regional integration in the world economy? Use examples from existing blocs (eg EU, USMCA, ASEAN) to illustrate your points.