Introduction\concept

is the action or procedure of international integration arising

from the interchange of world views, products, ideas, and other
aspects of culture.
Globalizing processes affect and are affected
by business and work organization, economics, socio-cultural
resources, and the natural environment.
 Globalisation is a leading concept which has
become the main factor in business life during
the last few decades.
This phenomenon afects
economy
business life
society and environment
 What globalisation is?
free movement of goods, services and capital.
a process which integrates world economies,
culture, technology and governance.
transfer of information, skilled employee
mobility, the exchange of technology, financial
funds flow.
 To be cont..
globalisation has religious, environmental and
social dimensions.
It covers all dimensions of the world economy,
environment and society.
Every government has a responsibility to
protect all of their economy and domestic
market from this rapid changing.
 how a company will adapt to this
changing?
First of all companies have to know diferent
efects of globalisation.
Globalisation has some opportunities and
threats.
learnt how to protect itself from some
negative efects and how to get opportunities
from this situation.
 Effects of Globalisation
Globalisation afects the economy, business life, society
and environment in diferent ways:
Increasing competition,
Technological development,
Knowledge/Information transfer,
Portfolio investment (fund transfer between developed
countries and emerging markets),
Regulation/deregulation, International standards,
Market integration,
Intellectual capital mobility,
Financial crisis-contagion efect-global crisis.
How Does Globalization Effect Apple

international market management: global decision making

production network geared towards global competition
product
Interface: Use of Icons, instead of text
e.g. "+," -
international language
software: different language choice (Chinese
(simplified/traditional), English, French, Spanish...).
Potential Impact of Economic Factors on Apple
Increased labor costs in China
Stagnating middle-class incomes in some developed countries
A strong U.S. dollar could increase exchange rates
Potential Impact of Legal Factors on Apple
Apple has recently entered the highly regulated financial services sector
increased levels of litigation.
planning to enter another highly-regulated sector: automobile
manufacturing.
Apple depends on a variety of products covered by intellectual property laws
POLITICAL AND ECONOMICAL CHANGES BORNE BY THE
COMPANY, ISSUES AND BENEFITS FOR THE ORGANIZATION

Potential Impact of Political Factors on Apple

accumulated a large amount of cash
heavily dependent on lower cost manufacturing in China
cost of finding alternatives to Chinese manufacturing could be high for Apple
Apples dependence on Chinese manufacturing and markets
become the target of growing nationalism and anti-Americanism
Apples close association with China could become a political issue in
countries
Apples dominant position in fields
 Competition
Globalisation leads to increased competition
Customers have too much choice in the
market.
 Exchange of Technology
One of the most striking manifestations of
globalization is the use of new technologies by
entrepreneurial and internationally oriented
firms
To exploit new business opportunities
Internet and e-commerce
 Knowledge/Information transfer
. Information can be easily transferred
The rapid changing of the market requires also
quick transfer of knowledge and eficient using
of that knowledge and information.
 Portfolio investment (Financial fund
flows)
Globalisation encourages increased
international portfolio investment.
 Regulation/deregulation and
international standards
Every new system, instrument or tool requires
new rules and regulations to determine its
impact area.
necessary to protect countries against global
risks and crises.
International standards also regulate markets
and economies by means of international
principles and rules
 Market integration

globalisation leads to the conversion of many

markets and economies into one market and
economy.
Global stock market projection and Pan-
European stock market projection are part of
this changing.
Qualitative Intellectual capital mobility

capital mobility through knowledge and

information transfers.
. One of the reasons is that
international/multinational companies have
subsidiaries, partners and agencies in diferent
countries
 Financial crisis-contagion efect-global
crisis
As a result of the globalisation impact.
Systemic risk refers to a spreading financial
crisis from one country to another country