Globalization is happening because of:

1
Globalization is happening because of

• Trade
• FDI (Foreign Direct Investment)
• Regional Cooperation
• Interest Groups

2
FDI Build Greenfield

• No available acquisition
• Local government requirements
• Local financing for construction
• Problems associated with local companies
• - management
• - labor
• - technology
• - debt
• - reputation

3
When buying FDIs look at

• Labor
• Management
• Organizational structure
• Goodwill
• Production facility
• Brand identification
• Easier access to local capital
• Quicker start up
• Avoid inefficiencies

4
Countervailing Forces to Globalization

• Religion
• Government
• Geographic Groups
• Regionalization