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Lecture Summer ProgramUniversity of Ulm

GlobalizationProf. Dr. Christopher StehrGerman Graduate School of Management and Law (GGS), HeilbronnFor the SUMMER PROGRAMM University Ulm Room Uni West

04. till 05. July 2011 and 21.07.2011

Herzlich WillkommenWelcome

Part III– Selected Countries– Intercultural Business

in Europe– Marketing in Europe

Selected Countries

Part IV– Case Studies/

Participants– Case Study/

Hidden Champion– Selected Cases

Part I– Globalization– Europe and Globalization– Integration and Trade

Theories– International Trade and

International Relations

Part II– Landmarks

of European Integration– The main Treaties– The European Institutions– European Harmonization

7/11/2011 Prof. Dr. Christopher Stehr; „Doing Business in Europe“

Doing Business in Europe

Globalization - Dimensions

General Introduction

Globalization Chances and Risks

Remarks by Prof. Dr. Christopher Stehr

German Graduate School of Management & Lawpolymundo - Consultancy for Globalization

Content1. Globalization - What is that?2. Germany@Globalization3. Globalization Indices 4. …and in the Future?!

Team work

Work task (content):

Try to get the question answered:

What is Globalization?

Is it measurable?

Please try to find a scientific and a personal definition through out a group discussion.

Can you use the definition in any kind for your enterprise?

7/11/2011

What is Globalization?

9. November 1989

11. September 2001

11. December 2001

September / October 2008

Worldwide DevelopmentsEnvironment

Global Cities

S

N

CAPITAL

RESSOURCECONFLICTS

ABC-Weapons

11.07.2011 11

Globalization - Dimensions

ATTAC

SMENGO´s

LA

ASEAN

Quantitative DimensionsEU

RUS

USA

IMF

MNE

JAPANCHINAWTO

11.07.2011 12

Globalization - Dimensions

ATTAC

SMENGO´s

LA

ASEAN

EURUS

USA

IMF

MNE

JAPANCHINAWTO

Environment

Global Cities

S

N

CAPITAL

RESSOURCECONFLICTS

ABC-Weapons

+ qualitative Dimensions

11.07.2011 13

Globalization - Dimensions

"Globalization is the continuous interlinking process of different worldwide happening occurrences in the fields of economy, technique, politics, culture and social aspects of nations with interlinked inter-dependenciesand consequences.“

Stehr, C. (2003), S. 47

Definition Globalization

11.07.2011 14

Globalization - Definition

Not a “new” „Phenomena“No fixed steady State..But a continuous ProcessIncrease, Consolidation, Condensation of cross-frontier Activities Increase of transnational Players

What is Globalization?

11.07.2011 15

Globalization - Definition

First of all economical „Dimensions“Worldwide opening of Marketsfor Goods, Currency and Work ForceInterlocking and Dependencyof different MarketsInternational/global (?)value added Chain

What is Globalization?

Globalization - Definition

Forms of Globalization

World ProductionWorld TradeWorld Market

World Communication

EnvironmentEnvironmental Consciousness

World CultureWorld SocietyWorld Politics

Environmental Crisis

World InformationWorld Standards

Economy

Technique

Ecology

Politics

Globalization - Dimensions

High SpeedInterlinkage Change of PowerPlaceless, timelessChange of Hierarchy

The “new” Globalization

Globalization – Dimensions

SummaryHistorical Dimension/DatesQuantitative/qualitative DimensionsDefinition/DefinitionsWhat is Globalization?Forms of GlobalizationThe “new” Globalization

11.07.2011 19

Content1. Globalization - What is that? 2. Germany@Globalization3. Globalization Indices 4. …and in the future?!

“Unification Boom” (since 1989)

New Economy (Bubble)

Standstill/StagnationReforms: Agenda 2010End of the German AG/Inc.?Export World Leader (till 2009?)

Germany and Globalization

Globalization – Countries

Development approachExport SurplusesPlaza-Degree (1985)

Heisei-Boom (1986-1991)

Ichiban, Japan as no.1Bubble economy (1990)

Decrease branch finance (1997/98)

“Lost decade” Reforms (Kouzumi)

Japan and Globalization

Globalization – Countries

Content1. Globalization - What is that? 2. Germany@Globalization3. Globalization Indices4. …and in the future?!

Work task (content):

Is globalization measurable?

How could you measureglobalization?

Are there any indicators of how you could globalization processes?

Does that makes sense?

How could you use thes indicators for your enterprise you are working for?

Are they usefull?

Globalization – Indices

Measuring Globalization?

Measurement of Globalization

Ökonomie

Technik

Ökologie

Politik

Sub-Sahara-AfricaBrazil

European UnionChina

India/BangladeshJapanRussiaUSA

Economy

Technique

Ecology

Politics

Globalization – Indicators and Indices

Ökonomie

Technik

Ökologie

Politik

Sub-Sahara-AfrikaBrasilien

Europäische UnionChina

Indien/BangladeschJapan

RusslandUSA

Measurement of Globalization

Globalization – Indicators and Indices

0%

50%

100%WG1: Auslandsverschuldung

WG2: Warenhandel

WG3: Einkommen pro KopfWG4: Wirtschaftswachstum

WG5: Ausländische DirektinvestitionenTG1: Anzahl der TV-Geräte

TG2: Aufkommen Flugpassagiere

TG3: Internetnutzer

TG4: Internationale TelefonanrufeTG5: Anzahl Autos

ÖG1: WaldflächenÖG2: Verfügbares Wasser pro Kopf

ÖG3: Energieverbrauch

ÖG4: CO2-Emissionen

ÖG5: Katastrophen

PG1: Anteil / Weltbevölkerung

PG2: Militärausgaben

PG3: Soldaten

PG4: Korruptionsindex

PG5: Bevölkerung unterhalb Armutsgrenze

Economical Globalization Indicators

Political Globalization Indicators

Ecological Globalization Indicators

Technical Globalization Indicators

Globalization Indicators

Globalization – Indicators and Indices

Japan

0%

50%

100%WG1

WG2

WG3

WG4

WG5

TG1

TG2

TG3

TG4

TG5

ÖG1

ÖG2

ÖG3

ÖG4

ÖG5

PG1

PG2

PG3

PG4

PG5

TG 1 Television

WG 3 Income

TG 5 Cars

WG 2 Trade

Globalization Indicators

Globalization – Indicators and Indices

Europäische Union

0%

50%

100%WG1

WG2

WG3

WG4

WG5

TG1

TG2

TG3

TG4

TG5

ÖG1

ÖG2

ÖG3

ÖG4

ÖG5

PG1

PG2

PG3

PG4

PG5

WG 5 Direct Investments

PG 3 Soldiers

TG 4 Telephon Calls

TG 1 Television

WG 3 Income

TG 5 Cars

WG 2 Trade

Globalization Indicators

Globalization – Indicators and Indices

Globalization IndicatorsEuropäische Union

0%

50%

100%WG1

WG2

WG3

WG4

WG5

TG1

TG2

TG3

TG4

TG5

ÖG1

ÖG2

ÖG3

ÖG4

ÖG5

PG1

PG2

PG3

PG4

PG5Sub Sahara Afrika

0%

50%

100%WG1

WG2

WG3

WG4

WG5

TG1

TG2

TG3

TG4

TG5

ÖG1

ÖG2

ÖG3

ÖG4

ÖG5

PG1

PG2

PG3

PG4

PG5

USA

0%

50%

100%WG1

WG2

WG3

WG4

WG5

TG1

TG2

TG3

TG4

TG5

ÖG1

ÖG2

ÖG3

ÖG4

ÖG5

PG1

PG2

PG3

PG4

PG5Russland

0%

50%

100%WG1

WG2

WG3

WG4

WG5

TG1

TG2

TG3

TG4

TG5

ÖG1

ÖG2

ÖG3

ÖG4

ÖG5

PG1

PG2

PG3

PG4

PG5Japan

0%

50%

100%WG1

WG2

WG3

WG4

WG5

TG1

TG2

TG3

TG4

TG5

ÖG1

ÖG2

ÖG3

ÖG4

ÖG5

PG1

PG2

PG3

PG4

PG5Indien/Bangladesch

0%

50%

100%WG1

WG2

WG3

WG4

WG5

TG1

TG2

TG3

TG4

TG5

ÖG1

ÖG2

ÖG3

ÖG4

ÖG5

PG1

PG2

PG3

PG4

PG5

China

0%

50%

100%WG1

WG2

WG3

WG4

WG5

TG1

TG2

TG3

TG4

TG5

ÖG1

ÖG2

ÖG3

ÖG4

ÖG5

PG1

PG2

PG3

PG4

PG5Brasilien

0%

50%

100%WG1

WG2

WG3

WG4

WG5

TG1

TG2

TG3

TG4

TG5

ÖG1

ÖG2

ÖG3

ÖG4

ÖG5

PG1

PG2

PG3

PG4

PG5

Globalization – Indicators and Indices

Globalization Index

Konjunkturforschungsstelle ETH Zürichhttp://globalization.kof.ethz.ch

Globalization – Indicators and Indices

What is measured?

Konjunkturforschungsstelle ETH Zürich, http://globalization.kof.ethz.ch, 15.10.2008

Globalization – Indicators and Indices

What is measured?

Globalization – Indicators and Indices

Schwellenländer (BRICS)Multinationale UnternehmenSupranationale OrganisationenInternationale KMU und NGO´sKapitaleigentümer (>1Mrd. US$)

What is measured?

Globalization – Indicators and Indices

Globalization Degree - World

Globalization – Indicators and Indices

Source: Konjunkturforschungsstelle ETH Zürich, http://globalization.kof.ethz.ch/static/maps/index_2007_75.png, Zugriff: 10.10.2010

Globalization Degree - World

Globalization – Indicators and Indices

Globalization Degree - Germany

Globalization – Indicators and Indices

Globalization Degree - Europe

Globalization – Indicators and Indices

Globalization – Top 15 countries

Globalization – Indicators and Indices

Globalization – Last 15 countries

Globalization – Indicators and Indices

Globalization Degree - Germany

Globalization – Indicators and Indices

Globalization Degree - Europe

Globalization – Indicators and Indices

Globalisierungsindex gesamt: Nr. 1Wirtschaftliche Globalisierung: Nr. 1Soziale Globalisierung: Nr. 1Politische Globalisierung: Nr. 1

Globalization Degree - ComparisonUSA - Germany

Globalization – Indicators and Indices

Globalization Degree - ComparisonJapan - Germany

Globalization – Indicators and Indices

SummaryMeasurement Globalization IndicatorsGlobalization IndexWhat is measured?Globalization Degree World/EuropeGlobalization Degree Germany, USA, Japan

Content1. Globalization - What is that? 2. Germany@Globalization3. Globalization Indices 4. …and in the future?!

Challenges

Stability Innovation

Reforms People

Globalization

Globalization – Challenges and Risks

Continuous Globalization Countries/DistributionDeregulationGlobal Competition:Work, Earth/Floor, CapitalKnowledge and Innovation

Globalization – even more?

Globalization – Challenges and Risks

Agglomeration advantagesCooperation politics/economyHuman resourcesCompetitivenessContinuous competitionGlobal cities (culture, innovation)

Globalization advantage – Europe

Globalization – Challenges and Risks

Economic Power – Global Cities

Globalization – “Global Cities”

S. SASSEN, 1996, Metropolen des Weltmarkts. Die neue Rolle der Global Cities. – Frankfurt u. New York.

Steuerungs- und Kontrollzentralen, Standorte zentralisierter Managementfunktionen fürhochspezialisierte Dienstleistungen und die Zentralen der Finanzwirtschaft.

Steering- and control centersPlaces with centralized management functions for highly specified services and the centers of the finance industry

Economic Power – Global Cities

Globalization – Challenges and Risks

S. SASSEN, 1996, Metropolen des Weltmarkts. Die neueRolle der Global Cities. – Frankfurt u. New York.

Globalization – even more?

Globalization – Challenges and Risks

„Angreiferstaat“ Goals of the society:DevelopmentHuman ResourcesWelfare„Domination”

The Asiatic Century

Globalization – Challenges and Risks

New global players: Mukesh Ambani

Globalization – Challenges and Risks

No. 7: Mukesh Ambani / $19.5 billion / Petrochemicals

Oversees Reliance Industries, India's most valuable company by market cap despite stock falling 40% in past year. Merging his Reliance Petroleum with flagship Reliance Industries. Late father, Dhirubhai, founded Reliance and built it into a massive conglomerate. After he died, Mukesh and his brother, Anil, ran the family business together for a brief time. But siblings feuded over control; mother eventually brokered split of assets. Has yet to move into his 27-story home that he's building at a reported cost of $1 billion. Ardent fan of Bollywood films. Wife, Nita, oversees school named after his father.

http://articles.moneycentral.msn.com/Banking/Advice/the-10-richest-people-in-the-world-slides.aspx?slide-number=7, 17.10.2010

New global players: Lakshmi Mittal

Globalization – Challenges and Risks

No. 8: Lakshmi Mittal / $19.3 billion / SteelIndian immigrant heads world's largest steel company; ArcelorMittal was formed via hostile takeover three years ago. Stock in company makes up bulk of his fortune; shares at a four-year low, with steel prices down 75% since last summer. Company forced to pay heavy fines after a French antitrust investigation found 10 companies guilty of price-fixing in European steel markets. Arcelor posted $2.6 billion loss in most recent quarter. Started in family steel business in the 1970s, branched out on his own in 1994. Initially bought up steel mills on the cheap in Eastern Europe. Holds substantial cash; owns 12-bedroom mansion in London's posh Kensington neighborhood.

http://articles.moneycentral.msn.com/Banking/Advice/the-10-richest-people-in-the-world-slides.aspx?slide-number=8, Zugriff: 17.10.2010

The century of the BRICS

Who wins?

Globalization – Challenges and Risks

The century of the BRICS?

Globalization – Challenges and Risks

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Globalization – Challenges and Risks

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Brazil:Resources

India:Software

Russia:Resources

China:Production line of the world

BRICS status quo?!

Globalization – Challenges and Risks

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Brazil:ResourcesOil, Financesector

India:Steel, AutomotiveIT branch

Russia:Oil, gas and other resources

China:High-tec, telecom.AerospaceSolar techniqueFinancesector, resources

Worldwide largest companies Market value (29.12.2009)

Globalization – Challenges and Risks

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Personal work

Work task (research and presentation): Please stay on your own/better in groups?. Please reflect the recent strategy of your country. If you don´t know please make a research. Please summarize the results on a flip chart. Please present your results to the other members

of our lecture. THX.

7/11/2011 Prof. Dr. Christopher Stehr; „Doing Business in Europe“62

How can your country react on these developments?How is your country reacting on these developments?How could/must be a proactive strategy though out these developments concerning your country?

Chances in the future?!

3.500 3.300 2.700 2.000

44.500

35.000

27.500

6.500 6.000 5.500

China

USAInd

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Brasilie

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Frankre

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lien

Quelle: Goldman Sachs, 2003

The largest economies in 2050

CNP (based on 2003 in billion US$)

Globalization – Challenges and Risks

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000

2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

BRICs

G6

Development GNP - BRICS

Quelle: Goldman Sachs, 2003

GNP (in billion US$)

Globalization – Challenges and Risks

Super PowerUnilateralism Liberal EmpireEnemy ProjectionBasic Norm = LibertyMissionary ApproachWorld due to US-Approach

The American Dream

Globalization – Challenges and Risks

Global Responsibility Civil SocietyPeace, FreedomDemocracy, SustainabilityHuman RightsWelfare State

The European Dream

Globalization – Challenges and Risks

Japan as no.1?Primus inter paresGlobal ResponsibilityEcological ApproachDemocracy/WelfareIncome Distribution

The Japanese Dream

Globalization – Challenges and Risks

Team work

Work task (content):

Do theses societies have developing goals or “dreams”?

How can you use this information your organization enterprise you were are working for?

7/11/2011 Prof. Dr. Christopher Stehr; „Doing Business in Europe“68

What could be the Brazilian Dream on Globalization?What could be the Russian Dream on Globalization?What could be the Indian dream on Globalization?What could be the Chinese dream on Globalization?

SummaryChallengesGlobalization – still more?The Asiatic Century?!BRIC-StatesThe American DreamThe European Dream The Japanese DreamThe BRICs Dream

Content1. Globalization - What is that? 2. Germany@Globalization3. Globalization Indices 4. …and in the future?!

Thank you very muchfor your Attention

Your QuestionsYour Remarks

and the last group work ;-)for today?!

Effect of Globalization upon industrialised societies

Work-change

Value-change

Social change

System-change

Structure-change

Globalization

Main Conflict - Example

Classical welfare states are in an economic and social-political time-dilemma

National destabilisationSocial agitation

Spreading fairness

Over-capacities

Consensus society

Public debts

Reduction of the welfare state

Bondage to save

Competition of nations

Globalisation

e.g. Asian market crisis

Modernisation

Main Conflict - Example

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