NAME Bernard Jay P.

Sarita
COURSE & SECTION BSBA-FM 2B

LESSON 1 Globalization
1. Recognize the main drivers of globalization.
2. Describe the changing nature of the global
economy.
LEARNING 3. Explain the main argument in the debate over the
OUTCOMES impact of globalization.
4. Understand how the process of globalization is
creating opportunities and challenges for
management practice.
ACTIVITY 1 Assignment 1
1. Read chapter 1 of Hill & Hult and answer the
following.
2. Write your answers below each question.
Instructions
3. This is due for submission on August 23, 2019 via
email nash.reginio@usep.edu.ph . Use this as your
subject: LASTNAME_bsba2A(or 2B)-act1

1. How have changes in technology contributed to the globalization of markets and

production? Would the globalization of production and markets have been
possible without these technological changes?

The globalization of production and markets wouldn’t be possible with these

technological innovations because thinking that international trades that happens
between different countries would take a very long process and a very long time in
order to receive products without the help of new technologies that greatly helps
when it comes to communication and for faster and easier way of producing goods
for the market.

2. How does the Internet affect international business activity and the globalization
of the world economy?

The internet greatly affects the business activity and the globalization of the world
economy because of three functions in the economy. First is the internet serves as a
great pillar for the virtual market place to exist because mainly, people needs internet
to access various business sites that sells different products. Second, the internet
provide vast ways of how to sell or to promote a business’s products all over the world
except the remote cities/places of the world. Third, it helps the people to easily find
products of what they need in a specific field by the help of the internet. And the
fourth and last, it helps many business firms to grow by reducing their selling
expenses by using the internet instead of posting advertisements on billboards, and
television. And instead of having a physical store for their respective branches,
companies could save up by just using delivery services. It is a good strategy to
reduce the expenses of the company.
3. If current trends continue, China may be the world’s largest economy by 2030.
Discuss the possible implications of such a development for

A. the world trading system

If the current trends continue, China may be the world’s largest economy by
2030. This is not sure but the facts may lead to this conclusion, because China has
been the world’s largest exporter, sending more than $2 trillion worth of products
and services from it’s country to the rest of the world. Since the China has been the
largest exporter on the past, it may be possible that they can have a full participation
on the world trading system. This may have a negative effects for the other countries
operating internationally, because if China takes the majority it could greatly affect
the future of other companies performing internationally.

B. the world monetary system

The possible scenario is that the China’s currency which is Chinese Yuan and
also called Renminbi will have the greatest influence in the world, and this could be
the key to the plan of China to replace the U.S Dollar into Chinese Yuan as the global
currency. They will have more control on their economy and would cause the other
countries to make an adjustments due to the change, and China will have more
economic clout in relation with United States.

C. the business strategy of today’s European and U.S.-based global corporations

The recent political events happening on the Europe which is the election of
nationalistic politicians is a great threat to the Europe based companies because the
agenda of nationalistic politicians is to build and raise a barrier between their
national economy and the world economy. European based companies has to amend
or make major changes with their business strategy in order to avoid a possible
devastation on their companies performance and also the future of their companies.

D. global commodity prices.

Hypothetically, if the China would be the world’s largest economy, and if the
global currency will be changed into Chinese Yuan, the world will have to adjust and
to recalibrate their prices based on the China’s currency. And China is a rapidly
growing country in the past, possibly their factory workers and laborers will lose their
jobs due to the unavoidable improvement of technology and no longer require
companies a lot of manpower in order to perform the field jobs.

4. Reread the Management Focus on Boeing and answer the following questions:
 A. What are the benefits to Boeing of outsourcing manufacturing of components
of the Boeing 787 to firms based in other countries?

The outsourcing manufacturing of the Boeing 787 has a lot of benefits, basically
outsourcing is one way of reducing the expenses incurred on the manufacturing
process of the plane. It opened a door for improvements and innovations and helped
the supplying companies grow by making them as their direct supplier of respective
parts. It gives the companies the reputation as one of the suppliers of the Boeing 787
that makes their name reliable when it comes to manufacturing parts of a plane.

B. What are the potential costs and risks to Boeing of outsourcing?

The potential costs and risk of Boeing outsourcing are the political changes along
different countries that could possibly discontinue their countries international
operations with the Boeing and would result of Boeing looking up with different and
new suppliers, which could be a problem because of the new supplier may have
difficulties in manufacturing the parts of the plane.

C. In addition to foreign subcontractors and Boeing, who else benefits from

Boeing’s decision to outsource component part manufacturing assembly to
other nations? Who are the potential losers?

The people who benefits from the Boeing’s decision to outsource is the foreign
airlines and the employees of the huge companies that supplies different parts to the
Boeing because they are offered more jobs because of their contract with the Boeing.
I think there’s no loser in this kind of business setup.

D. If Boeing’s management decided to keep all production in America, what do

you think the effect would be on the company, its employees, and the
communities that depend on it?

This will greatly affect their own products and also the economy, there could be
a possibility that the new business contractors and suppliers may have a difficulty
on manufacturing the designated parts to them, because for many years the foreign
countries has continuously performed the manufacturing of parts for the Boeing.

E. On balance, do you think that the kind of outsourcing undertaken by Boeing

is a good thing or a bad thing for the American economy? Explain your
reasoning.

I think it is a bad thing for the American economy, because the price of the parts
that Boeing company collects from foreign countries was supposed to be on the
America because their company and CEO is within the America and it is supposed
to be spend in the America’s economy in order to contribute to their GNP.