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Globalization and International Business: Starbucks Corporation - Case Study Example

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In the paper “Globalization and International Business: Starbucks Corporation” the author analyzes two major factors that underlie the trend towards globalization:1) the decline in the barriers to the free flow of goods, services and capital since the Second World War, and 2) technological change…
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Globalization and International Business: Starbucks Corporation
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Download file to see previous pages The Small Business Encyclopedia defines globalization as the process by which the economies of countries around the world become increasingly integrated over time. This integration occurs as technological advances expedite the trade of goods and services, the flow of capital, and the migration of people across international borders (globalization,
The shreds of evidence of globalization are all around us. For example, Hill (2005) cites an example of an American driving a car designed and produced in Germany that was assembled in Mexico from components made in Japan fabricated by Korean steel and Malaysian rubber. The car is filled with gasoline from oil pumped from off the coast of Africa, at a service station owned by a British multinational; the oil was extracted by a French oil company which transported it to a refinery in the United States in a ship owned by a Greek shipping line, and so on. Many examples can be cited to prove that globalization, whether for good or ill, has gripped the world and that there is no turning back.
For many businesses, globalization has increased the opportunities to expand and diversify revenue sources worldwide while reducing their costs of labor and inputs. Regulatory and administrative barriers have come down; state-owned enterprises privatized, markets deregulated, a competition promoted through product pricing and differentiation strategies, and foreign investments welcomed through more liberal investment rules and incentives. Even retailers like Wal-Mart of the United States and Carrefour of France have joined in searching for opportunities to extend their global scope in order to realize economies of scale, build up their brands, and leveraging their skills and competencies across national boundaries. ...Download file to see next pagesRead More
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