Lecture 1 - Key concepts and definitions

Some MVEs are more influential than some mid-sized nations.

• Exxon Mobil compared to the country of Chile are both worth $72 billion.

While others hold complete dominance over a country, being the sole industry in that nation: e.g.: gas, automobile, tech etc...

But. Is Globalisation over? Brexit is a clear example that countries are tired of open borders. Often these periods of de-Globalisation can occur during conflict by the way of trade sanctions or closing of borders during wartime.

Also, can we claim the world is flat? Thomas Friedman (2005) thought so, as any competitor has the same opportunity as any other from any other country. But Richard Florida (2005) argues that it's spiky, with specific concentrations of investment, money, and interest, a disconnect between the relative population of a country and its subsequent FDI or wealth. Rugman and Verbeke (2004) claim that borders and barriers still remain.

Globalisation

• Is the desired end process by nations and economies.
• Regulated and overseen by international-governing bodies like the IMF, WB and WTO.
• Tends to be related more to infrastructures like communications and logistics.
• Overall, the liberalisation on trade, movement and communication.

Internationalisation

• The process unto which Globalisation is achieved, hence it is a subset of it.
• Encouraged and facilitated by bodies such as NAFTA, EU, APEC and OECD.
• Tends to be affiliated and affected by culture, preferences and tradition.
• Aimed at expanding business overseas, either sourcing material or workforces, or selling.
• Overall, more related to the business, individual and services a nation can offer.

The process of Globalisation, although initially costly, reduces over time as it becomes adopted wholly.

Bodies such as the WTO can help facilitate agreements between nations. This is especially helpful with the introduction of the TRIPS agreement (a legal agreement between WTO members over intellectual property rights).

Furthermore, it helps regulate FDI. But has come under scrutiny due to "green room" negotiations (30 invited member nations discuss critical proposals), the wealth imbalance between wealthier and poorer nations and their political and economic power, as well as the poorer nations not being able to dedicate as much manpower and influence into critical phases of negotiations, such as the "Doha Round".

Also, if the outcome is unfavourable, sanctions may be placed if the recipient nation does not comply, which can be crippling. Raising concerns for sovereignty.