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CHAPTER 4
BUSINESS IN A GLOBALIZED WORLD
INTRODUCTION
The world economy has become increasingly integrated, and many businesses have
extended their reach beyond national borders. Yet the process of globalization is
controversial, and the involvement of corporations in other nations is not always
PREVIEW CASE
Uber Pulls out of China
Corporate involvement abroad often involves challenging social, ethical, and
environmental issues. What were the issues faced by Uber in China? Who were their
global stakeholders, and how were these stakeholders affected – positively and negatively
– by the company’s actions?
CHAPTER OUTLINE
I. THE PROCESS OF GLOBALIZATION
A. Major Multinational Enterprises
B. International Financial and Trade Institutions
Teaching Tip: Preview Case
The preview case describes a dispute involving a multinational
corporation, Uber in China. Instructors may wish to introduce the case
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II. THE BENEFITS AND COSTS OF GLOBALIZATION
A. Benefits of Globalization
B. Costs of Globalization
III. DOING BUSINESS IN A DIVERSE WORLD
A. Comparative Political and Economic Systems
B. Global Inequality and the Bottom of the Pyramid
IV. COLLABORATIVE PARTNERSHIPS FOR GLOBAL PROBLEM
SOLVING
A. A Three-Sector World
GETTING STARTED
KEY LEARNING OBJECTIVES
LO 4-1: Defining globalization and classifying the major ways in which companies
enter the global marketplace.
LO 4-2: Identifying the international financial and trade institutions that have
shaped the globalization process in recent decades.
Teaching Tip: Bottom of the Pyramid
A six-minute video that uses graphics with voice-over narration that
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prior written consent of McGraw-Hill Education.
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DISCUSSION CASE
INTEL AND CONFLICT MINERALS
1. How do conflict minerals, and in particular, conflict coltan get their name? What
groups benefited from the trade in conflict minerals? What groups were hurt by it?
2. Consider the three sectors discussed in this chapter (business, government, and civil
society). What were the interests of each, with respect to conflict coltan, and in what
ways did their interests converge?
3. Why was Intel unable to eliminate conflict minerals from its supply chain unilaterally,
that is, without the help of others?
http://video.pbs.org/video/1622330246
4. In what ways did Intel collaborate with other sectors (governments and civil society) in
its efforts to eliminate conflict minerals from its products? What strengths and
weaknesses did each sector bring to the task?
5. What further steps could be taken by governments, NGOs, and companies to
strengthen the process to exclude conflict minerals from the global supply chain?
