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Transcript of International business
International business
Lecture No,2Shahzaib khan
The ChangingDemographics
of The Global Economy
The ChangingWorld Outputs
& World Trade Picture
Country Share of world output 1963
Share of world output 2008
Share of world
Exports 2008
USA 40.3% 20.7% 9.3%
JAPAN 5.5% 6.4% 4.5%
Germany 9.7% 4.2% 8.7%
France 6.3% 3.1% 3.8%
UK 6.5% 3.2% 3.9%
Canada 3.0% 1.9% 2.7%
China NA 11.4% 8.4%
The ChangingForeign Direct
Investment(FDI)Picture
Percentage Share of Total FDI Stock, 1980-2000
05
1015202530354045
U.S.A. Japan France Dev.Countries
1980
1990
2000
U.K
.
Ger
man
y
Net
her
lan
ds Figure 1.4
The ChangingNature
of Multinational
Enterprise
The Rise of
MINIMULTI-NATIONALS
Country Of the top260 In 1973
Of the top 500 in 1997
USA 126(38.5%) 162 (32.4%)
JAPAN 9 (3.5) 126 (25.2)
UK 49 (18.8) 34 (6.8)
FRANCE 19 (7.3) 42 (8.4)
GERMANY 21 (8.1) 41 (8.2)
The National Composition of the Largest Multinationals
4
The Changing World Order
The Global Economy
of 21st, Century
The Globalization Debate
Prosperity or
Impoverishment?
Globalization Jobs & Incomes
Globalization Labour policies,
&The Environment
Globalization &
National Sovereignty
http://playit.pk/watch?v=SHyIW-vUhO8
Country DifferencesIN
Political Economy
Political Systems
Collectivism and individualism
Collectivism♦A political system that stresses the
primacy of collective goals over individual goals.
♦Advocated by Plato in the “Republic”.(347-427 BC)
The republic argued that individual rights should be sacrificed for the good of the majority.
Socialism ♦Modern socialists trace their
intellectual roots to Karl Marx(1818-83)
♦ Argued that the pay of workers does not reflect the full value of their labor.
♦Advocated state ownership of production distribution, and exchange(businesses), thereby ensuring that workers were fully compensated for their labor.
Two Approaches Communists: Socialism is achieved through
violent revolution.
Social Democrats: Socialism is achieved through
democratic means.
Political Systems (The system of government in a nation)
Individualism: � Opposite of Collectivism.
� Individual should have freedom in political and economic pursuits.
� Advocated by Aristotle. � Private property is more highly productive than communal property
and will thus stimulate progress
Political Systems� Hume (1711-1776)� Adam Smith (1723-1790) � John Stuart Mill (1806-1873)� Embodied in the U.S.
Declaration of Independence.
Democracy and Totalitarianism
• Democracy– Government by
the people, exercised either directly or through elected representatives.
• Totalitarianism– Government in
which one person or political party exercises absolute control over all spheres of human life and opposing political parties are prohibited
Democracy–Safeguards to protect a
democracy:• Right to freedom of expression, opinion,
and organization.• A free media.• Regular elections in which all eligible
citizens are allowed to vote.• Universal adult suffrage.
Democracy• A fair court system independent
of the political system.
• Relatively free access to state information.
Totalitarianism 4 major forms:
Communism• Collectivism is achieved through
total dictatorship.Theocratic
Political power is influenced by religious principles.
Totalitarianism
Tribal
A political party representing the interests of a particular tribe monopolizes power.
Right-wingGenerally permits individual economic freedom,
but restricts political freedom to prevent the rise of communism.