Group 2 Business administration Slide _ Behaviors of businesses in the globalization era, Modern Slide, minimalist. In recent decades, globalization has grown tremendously and become an inevitable trend. This trend strengthens the international connections, and creates links, effects, and interdependence among countries and regions. There are many ways to explain the meaning of globalization, but there is a comprehensive one: “Globalization is a process that minimizes burdens among countries and encourages the interdependence in economy, politics and society”. This process happens in every aspect such as: economy, culture, politics, society, environment and economy is a very crucial part. Economic globalization enhances international activities without borders and promotes the interaction and interdependence among countries. There are some characteristics of globalization. Firstly, globalization enhances the commercial activities among countries. International trade helps countries achieve their economic benefits because in this environment, these countries have to eliminate commercial and tax burdens, unfair discrimination. Some nontariff measures like quotas, import licenses, regulations about quality, originality, sanitation were also mentioned in this round and the WTO implemented some policies to eliminate these measures, leading to a fair competition and more commercial trades. Secondly, globalization facilitates the new financial and commercial organizations in the world. In terms of world organizations, the IMF (international monetary fund) enhances economic development and aids financial support. The WB (world bank) provides loan programs to developing countries to promote economic development. The WTO (world trade organization) creates a transparent, equal and free commercial market for more than 160 countries around the world. In terms of regions, the EU is the most outstanding organization that includes 27 members and considered to be an economic, political group having a deep connection with each other. Thirdly, multinational companies and transnational corporations have developed dramatically and had an important role in promoting globalization. Not only do these affect the world economy but they also have a great impact on regional development, international trade and investment, technology transfer and labor force. Thanks to the greater power, multinational companies and transnational corporations have been expanding their influence and control in some sectors like: finance, technology, service and labor. Overall, this system of companies has developed the world manufacturing process, and strengthened the interdependence among countries tightly.
GROUP - BUSINESS ADMINISTRATION BEHAVIORS OF BUSINESSES IN THE GLOBALIZATION ERA & THE DELL – EMC M&A CASE STUDY Nguyễn Nhật Anh - CT47C1-0005 Đỗ Ánh Dương - KT47C1-0156 Nguyễn Thị Ngọc Quỳnh - KT47C1 0165 TABLE OF CONTENT Behaviors of businesses in the globalization era The Dell - EMC M&A case study • Globalization and companies in globalization • Site selection • Types of foreign capital investment • The overview of Dell & EMC M&A • Analysis and evaluation of the M&A deal between Dell and EMC Globalization Definitio Globalization is a process that minimizes n burdens among countries and encourages the interdependence in economy, politics and society Characteristics Enhances the commercial activities Facilitates the new financial and commercial organizations Multinational companies and transnational corporations had an important role Globalization POSITIVE EFFECTS • Economies enhanced significantly due to competitiveness • More investments create more jobs for laborers • More opportunities to access up-to-date technology NEGATIVE EFFECTS • The rich and poor gap will widen among countries • Tough competition lead to undesirable consequences • Interdependence is a double-edged sword SITE SELECTION SELECTION SITE Socio-economic Natural factors environment and the stability of macro environment Labor force Infrastructure Legal environment and investment attract policies SOCIO-ECONOMIC ENVIRONMENT AND THE STABILITY OF MACRO ENVIRONMENT • Socio-economic environment plays an important role in using and allocating the capital effectively • A stable macroeconomic environment is the first priority for investors NATURAL FACTORS • Available factors in each country, including geographical location and natural resources • Strategic ones in policy development and economic sector structural construction LABOR FORCE • Key factor in an enterprise's business activities, contributing to its success or failure • Well-trained, qualified employees with jobspecific skills and the ability to collaborate with capable managers will result in increased productivity and efficiency INFRASTRUCTURE • Factor in promoting foreign investment activities and has a decisive influence • The technical infrastructure acts as catalysts, assisting in the investment process LEGAL ENVIRONMENT & INVESTMENT ATTRACT POLICIES Basic content of the principle: respect for sovereignty, independence, equality, mutual benefit, and compliance with international practices • A healthy competitive environment and legally guaranteed private property ownership • Transparent administrative procedures Structure before & after M&A Source: Wall Street Research