Please read BAYER's DEFINITION OF GLOBALIZATION as defined in the attached document and give examples of the 5 major elements (that which is underlined) globalization provided.
BAYER’S DEFINITION OF GLOBALIZATION
The following elements of globalization can help shape upcoming lessons. The course was designed to illustrate the support organizational structure provides for companies to achieve their objectives. The major elements of globalization are as follows (with examples):
Globalization of production:
Companies that engage in the globalization of production produce goods and services outside their home country, or source components from around the world to create a final product or service.
Examples are Intel and HP. Both are U.S.-based corporations, with manufacturing in their home countries, but also with manufacturing in Asia and Europe to ‘be closer to their customers’ to better serve them. Other examples include Honda and Toyota, both Japan-based corporations that manufacture cars in the U.S.
Globalization of markets:
This occurs when companies from a home-country base market their products to the rest of the world. Examples include Nokia (a company from Finland), Sam Sung (from S. Korea) selling cell phones in over a hundred countries, or Motorola (a U.S. company) selling in the U.S. and over 100 countries, too.
Mobility of investment:
This occurs with investors (individual or organizational) using financial markets outside home markets to earn a return on investment. A U.S. citizen buying a German government bond to earn a higher yield is an example.
Companies, looking to participate in a foreign market, and hoping to achieve control, participate in ‘Foreign Direct Investment’. So, with Nokia’s manufacturing plant in Texas, Nokia did ‘inward-Foreign Direct Investment’ in the U.S., while Intel and HP, by each investing in Ireland, both engaged in ‘outward-Foreign Direct Investment’ in Ireland.
Portfolio investment is different. Let’s say you are in Japan and the government sells bonds that pay 2% interest, over 10 years, while US Treasury Bonds pay 4.75%. A Japanese investor, buying a US Treasury, for a financial return only [no control of an operation] is an example of portfolio investment.
Dispersion of popular culture:
The world is truly smaller as a result of the communication revolution. Popular culture, including films, TV programs, music, institutions like Disneyland, etc., is also available around the world. Hip-hop can be heard in Japan, U.S. kids buy Pokemon and animae (Japanese comic books), Harry Potter from England has fans worldwide, MTV is in 50 + countries, Homer Simpson and Ophra are syndicated and shown outside the US, etc.
Mobility of labor:
As the world integrates, people with skills can take those skills and use them outside their home countries. So, a U.S. accountant or attorney can decide to move Europe to work; because we have a shortage of nurses in the U.S., Canadian and Philippine nurses move here to work. In these examples, the individual decides to work outside their home countries to improve their life and income (or any number of other human motivations).