OPM 533: Project Management
Slide 1
Dr. Torky Althaqafi
Email: [email protected]
College of Business Administration
University of Business and Technology
Dr. Torky Althaqafi
Email: [email protected]
College of Business Administration
University of Business and Technology
PhD in Project Management & Entrepreneurship (Australia)
Master of Applied Project Management (Australia)
Project Management Professional (PMP)
Advance Diploma of Occupational Health and Safety (Australia)
Accredited SME Consultant (USA)
Diploma of Quality Auditing (Australia)
Bachelor of Science degree (Jeddah)
Diploma of Computer Applications (Jeddah)
PhD in Project Management & Entrepreneurship (Australia)
Master of Applied Project Management (Australia)
Project Management Professional (PMP)
Advance Diploma of Occupational Health and Safety (Australia)
Accredited SME Consultant (USA)
Diploma of Quality Auditing (Australia)
Bachelor of Science degree (Jeddah)
Diploma of Computer Applications (Jeddah)
Chapter 1
Globalization
Learning Objectives
• 1-1 Understand what is meant by the term globalization.
• 1-2 Recognize the main drivers of globalization.
• 1-3 Describe the changing nature of the global economy.
• 1-4 Explain the main arguments in the debate over the impact
of globalization.
• 1-5 Understand how the process of globalization is creating
opportunities and challenges for management practice.
Opening Case
• Detroit Bikes
• By 2018, about 95 percent of bikes sold in U.S. were
assembled in China; about 65 percent of component parts
were also produced in China.
• American consumers benefitted from lower prices.
• Detroit Bikes is an exception to outsourcing trend but
struggled with production and local sourcing.
• 2018 tariffs and resulting trade war was a mixed blessing for
Detroit Bikes, due to supply chain disruptions.
• Detroit Bikes is trying to avoid raising prices, other companies
say they have no choice.
• VCG/Getty Images
Opening Case
• Many made-in-China goods are now produced in Taiwan, creating an export boom
to the U.S. as tensions rise between Washington and Beijing.
• Link
• VCG/Getty Images
Introduction
• World Economy Today
Fewer self-contained national economies.
More integrated global economic system with lower barriers to trade and investment.
Transformation is called globalization.
Today, benefits of globalization are more in dispute than at any time in the last half century.
 This shift has created many challenges and some opportunities, too.
 Globalization continues to impact almost everything we do.
What Is Globalization?
What Is Globalization? 1
• Globalization
Globalization refers to the trend towards a more integrated global economic system where
barriers to cross-border trade and investment are declining, perceived distance is shrinking thanks
to advances in transportation and telecommunications, and material cultures are more similar
across borders.
Two facets:
 Globalization of markets.
 Globalization of production.
What Is Globalization? 2
• The Globalization of Markets
The merging of historically distinct and separate national markets into one huge global
marketplace.
In many markets, tastes and preferences of consumers in different nations are
converging on some global norm, creating a global market.
 Examples: Coca-Cola, McDonald’s, IKEA, Starbucks, Apple.
• The most global of markets are for industrial goods and materials that serve universal
needs around the world.
 Aluminum, oil, wheat, microprocessors.
What Is Globalization? 3
• The Globalization of Production
– Sourcing of goods and services from locations around the globe to take advantage of
national differences in the cost and quality of factors of production (labor, energy, land,
and capital). thereby allowing them to compete more effectively against their rivals.
– Lower overall cost structure.
– Improvement of the quality or functionality of a product to compete more effectively.
What Is Globalization? 4
• Boeing to outsource some 65 percent of its 787
aircraft.
• Boeing kept key activities such as design and
marketing in the United States.
• 50 suppliers located around the world for much of
the aircraft’s production.
• For Boeing the strategy meant lower costs and
higher value, but it also meant greater risk.
• Is Boeing still an American company?
• What are the benefits to companies of outsourcing production?
What Is Globalization? 4
• The Globalization of Production
continued
– Early outsourcing was primarily for
manufacturing.
– Today, modern communications
technology allows companies to
outsource services.
– Impediments to globalization:
 Formal and informal trade barriers.
 Barriers to foreign direct
investment.
 Transportation costs.
 Economic and political risk.
 Managerial challenge for
coordinating a globally dispersed
supply chain.
The Emergence of Global Institutions
The Emergence of Global Institutions 1
• Global Institutions
– World Trade Organization (WTO)
– General Agreement on Tariffs and Trade (GATT),
– International Monetary Fund (IMF)
– World Bank
– The United Nations (UN)
Over the last half-century, several global institutions have been created to help manage,
regulate, and police the global marketplace, as well as to promote the establishment of
multinational treaties to govern the global business system.
The Emergence of Global Institutions 2
• World Trade Organization (WTO)
• Polices world trading system and ensures nation adhere to the rules established in
WTO treaties.
• Succeeded the General Agreement on Tariffs and Trade (GATT).
• 164 member nations accounted for 98 percent of world trade (2020).
The Emergence of Global Institutions 3
International Monetary Fund (IMF)
– Maintains order in the international monetary system.
– Lender of last resort.
– Requires nation-states to adopt specific economic policies in return for loans.
• World Bank
– Promotes development using low-interest loans.
– Seen as less controversial than IMF.
The Emergence of Global Institutions 4
• United Nations (UN)
Committed to maintaining international peace and security on basis of UN Charter:
 Develops friendly relations among nations.
 Promotes cooperation in solving international problems.
 Promotes respect for human rights.
 A center for harmonizing the actions of nations.
• Includes 193 member countries.
The Emergence of Global Institutions 5
• Group of Twenty (G20)
– Comprised of finance ministers and central bank governors of the 19 largest world
economies plus the EU and European Central Bank.
– Represents 90 percent of global GDP.
– Became a forum for a coordinated policy response to the financial crisis of 2008 and
2009.
Drivers of Globalization
Drivers of Globalization 1
• Two Macro Factors Toward Greater Globalization
1. Decline in barriers to free flow of goods, services, and capital.
2. Technological change.
Drivers of Globalization 2
• Declining Trade and Investment Barriers
International trade occurs when a firm exports goods or services to consumers in another
country.
Foreign direct investment (FDI) occurs when a firm invests resources in business
activities outside its home country.
During 1920s and 1930s, many nations put up barriers to international trade to protect
domestic industries.
After WWII, the industrialized countries of the West started a process of removing barriers
to the free flow of goods, services, and capital between nations. Under GATT, nations
negotiated even further decreases in tariffs and made significant progress on several nontariff issues (e.g. intellectual property, trade in services).
Table 1.1 Average Tariff Rates on Manufactured Products as
Percentage of Value
Country 1913 1950 1990 2018
France 21 percent 18 percent 5.9 percent 3.9 percent
Germany 20 26 5.9 3.9
Italy 18 25 5.9 3.9
Japan 30 — 5.3 2.5
Netherlands 5 11 5.9 3.9
Sweden 20 9 5.9 3.9
United Kingdom — 23 5.9 3.9
United States 44 14 5.7 3.1
• Sources: The 1913 to 1990 data are from “Who Wants to Be a Giant?†The Economist: A Survey of the
Multinationals, June 24, 1995, pp. 3 to 4. The 2018 data are from the World Tariff Profiles 2019, published by the
World Trade Organization.
Drivers of Globalization 3
• Declining Trade and Investment Barriers continued
• Trade in goods and services has been growing faster than
world output for decades.
• By 2019, sales of foreign affiliates of multinational
corporations reached $27 trillion.
Implications of fast-paced volume of world trade:
 More companies dispersing parts production.
 Economies of nation becoming more twisted.
 World becoming significantly wealthier.
• BCFC/Shutterstock
Figure 1.1 Value of World Merchandised Trade and
World Production 1960 to 2019
• Access the text alternative for slide images.
• Sources: World Bank, 2020; World Trade Organization, 2020; United Nations, 2020.
Drivers of Globalization 4
• Declining Trade and Investment Barriers continued
Some firms finding home markets under attack from foreign competitors.
Global financial crisis of 2008 to 2009 and drop in global output that occurred
led to more calls for trade barriers to protect jobs at home.
 Resulting trade wars, such as one between U.S. and China.
 May slow the rate of globalization and production.
• COVID-19 global pandemic has had a significant impact on global supply chains,
and thus on globalization.
Drivers of Globalization 6
• Role of Technological Change continued
The Internet.
 In 2019, 4.5 billion users (58 percent of global population).
 Reduces constraints of location, scale, and time zones.
Transportation Technology.
 Commercial jets, superfreighters.
 Innovation of containers has significantly lowered shipping costs.
Drivers of Globalization 7
• Role of Technological Change continued
Implications for the Globalization of Production.
 Lower transportation costs makes geographically dispersed production system more
economical; allows firms to better respond to demand shifts.
Implications for the Globalization of Markets.
 Low-cost communication networks create electronic global marketplace.
 Low-cost transportation makes shipping products around the world economical.
 Reduced cultural distance.
 Converging consumer tastes and preferences.
The Changing Demographics of the Global Economy
The Changing Demographics of the Global Economy 1
• Global Economy: Early 1960s
– U.S. dominated the world economy, world trade.
– U.S. dominated world FDI.
– U.S. MNEs dominated international business.
– About half the world was off limits to Western international business.
– Today, much has changed.
The Changing Demographics of the Global Economy 2
• The Changing World Output and World Trade Picture
Early 1960s.
 U.S. was dominant in industrial power, accounting for about 38 percent of world
manufacturing output.
• Today:
• U.S. accounts for only 24 percent.
• Germany, France, the U.K., and Canada had similar decline.
• Rapid economic growth now in countries like China, India, Russia, and Brazil.
• Chinese economy could surpass U.S. within a decade.
• Further relative decline by the U.S. and others is likely.
Table 1.2 Changing Demographics of World Output and World Exports
Country
Share of World
Output in 1960
(%)
Share of
World Output
Today (%)
Share of
World Exports
Today (%)
United States 38.3 percent 24.0 percent 8.2 percent
Germany 8.7 4.6 7.1
France 4.6 3.2 2.8
Italy 3.0 2.4 2.4
United Kingdom 5.3 3.3 2.3
Canada 3.0 2.0 2.2
Japan 3.3 6.0 3.6
China NA 15.2 11.1
• Sources: Output data from World Bank database, 2019. Trade data from WTO Statistical Database, 2019.
The Changing Demographics of the Global Economy 3
• The Changing Foreign Direct Investment Picture
– World output generated by developing countries has been steadily increasing since 19
60s.
– Stock of foreign direct investment (total cumulative value of foreign investments)
generated by rich industrial countries is declining.
– Cross-border flows of foreign direct investment is rising.
– Largest developing country recipients of FDI are China, Mexico, and Brazil.
Figure 1.2 FDI Outward Stock as a Percentage of GDP
• Access the text alternative for slide images.
• Sources: OECD data 2020, World Development Indicators 2020, UNCTAD database, 2020..
Figure 1.3 FDI Inflows (in millions of dollars) 1990 to 2019
• Access the text alternative for slide images.
• Source: United Nations Conference on Trade and Development, World Investment Report 2020.
The Changing Demographics of the Global Economy 4
• The Changing Nature of the Multinational Enterprise
– A multinational enterprise (MNE) is any business that has productive activities in two
or more countries.
– In last 50 years, rise of non-U.S. multinationals and growth of mini-multinationals.
– Non-U.S. Multinationals.
 Large number of U.S. multinationals reflects U.S. economic dominance.
 Today, world economy is shifting away from North America and western Europe.
Figure 1.4 National Share of the Largest 2,000 Multinational
Corporations in 2019
• Access the text alternative for slide images.
• Source: Forbes Global 2000 in 2019.
The Changing Demographics of the Global
Economy 5
• The Changing Nature of the Multinational Enterprise continued
– The Rise of Mini-Multinationals.
 More small- and medium-size businesses (mini-multinationals) are involved in international
trade and investment.
 Internet lowers barriers that smaller firms face in building international sales.
The Changing Demographics of the Global
Economy 6
• The Changing World Order
Collapse of communism throughout eastern Europe.
 Greater export and investment opportunities, but political unrest is an
increasing risk.
Economic development in China.
 Huge opportunities despite continued government control, but also new
competition from Chinese firms.
Free market reforms and democracy in Latin America.
 New markets and new sources of materials and production, but
economic and political risk remain high.
The Changing Demographics of the Global
Economy 7
• Global Economy of the Twenty-First Century
A more integrated global economy.
 New opportunities for firms.
 But political and economic disruptions can upset plans.
 Risks associated with global financial crisis.
 Impact of global supply chain disruptions.
• Hedging strategies increasing in importance.
Managing in the Global Marketplace
Managing in the Global Marketplace
• International Business
Any firm that is engaged in international trade or investment.
Managing international business differs from managing domestic business.
– Practices vary by country.
– The range of problems confronted by a manager in an international business is wider and the
problems themselves more complex than those confronted by a manager in a domestic business.
– Need to understand rules governing international trade and investment.
– International transactions involve converting money into different currencies.
• Qilai Shen/In Pictures Ltd./Corbis/Getty Images
Summary
• In this chapter, we have
– Understood what is meant by the term globalization.
– Recognized the main drivers of globalization.
– Described the changing nature of the global economy.
– Explained the main arguments in the debate over the impact
of globalization.
– Understood how the process of globalization is creating
opportunities and challenges for management practice.
Any academic writer who wishes to join our team of professional writers must possess all the following qualities:
To write an exemplary academic paper, you must have good critical thinking skills, possess the proper knowledge of the discipline, and be knowledgeable about applying an academic writing style.
As such we have a rigorous recruitment process. We only collaborate with professional academic writers. We believe in offering the highest quality academic writing services. Our writers pass various grammar and academic writing tests. They have to provide documents about their personal information and credentials to prove their level of expertise.
As a result, our clients receive papers that are thoroughly-researched, properly cited, and written within academic standards. We are proud that any academic writer from our writer's team can complete the paper at a high standard.
We work with the student’s budget because we know that students are usually on a budget majority of the time. We do not compromise on quality because of low prices. On the contrary, we love to foster a good relationship with our clients. That is why we charge our clients reasonable prices, and we are willing to negotiate and work with their budget.
It may be quite disturbing to decide whether to hire an academic writing company. We care about our client’s privacy and confidentiality. We never disclose your information to third parties. We never publish your paper online. You can use our academic writing service without any fear or anxiety.
Many students struggle with writing academic papers. Some barely have time to do their assignments because of their job and family responsibilities. Others have difficulty applying critical thinking skills or meeting time or assignment requirements. Whatever the reason is, you can always have time to do the things you love and other important things. All you need is a reliable and quality academic writing service. Unfortunately, even if you strongly desire to write the paper yourself, you sometimes face unexpected challenges. As we all know, life is unpredictable! Your teacher may be unconcerned about helping students and may not answer your questions. The good news is that there is a way out! You can hire an online academic writer to help you with your assignments. All you need to do is stipulate your paper requirements in the order form, and you can spend your time as you like.
Our company commits towards delivering high-quality custom papers to our clients. We seek to offer reliable essay writing services to our customers in various subject areas. Our customers are very valuable to us. As such, we commit to ensuring that they derive the utmost satisfaction from the essays we deliver. We have a mission to promote our clients' educational and professional lives by providing high-quality essays for their use. We also have a mission to offer a convenient essay writing system where our customers can easily order and pay for the services. We value quality and professionalism in our company.
We write papers on any subject area, and we also write various types of papers for various purposes. We have a team of able writers who are eager to help our customers with writing services of exceptional quality. We offer custom writing services for customers across the globe and charge affordable prices for our services. We are the best essay writing company offering personalized services to all our customers. We ensure our customers receive maximum satisfaction from the essays we deliver. Our website is the place to be if you are seeking high-quality essays.
By using our academic writing service, we match your paper subject with a writer with a degree in the subject. The writer is able to apply their skills, knowledge, and expertise to the paper. You receive an original, unique, well-research paper, properly cited and formatted. As such, you are assured of a high-quality paper.
Truth be told, writing assignments can be stressful and difficult for any student. There is no shame in getting academic writing help. When you search the term “get academic writing help” there are numerous sites that pop up on the results and our website is among them. So, why is it a great idea to choose us?
During your course, your instructor will assign various types of homework. Our academic writers can prepare essays, presentations, speeches, case studies, research papers, dissertations, thesis papers, and more. Our writer’s department is capable of tackling any assignment of any complexity easily. All you need is to give us detailed instructions to help our experts understand the task.After doing so, you can rest assured that everything is in control, and we will deliver a paper of unmatchable quality.
Are you a college or university student pursuing your Bachelor’s , Masters, PhD, or Doctorate degree? Sometimes juggling schoolwork with work, family and hobbies can seem like a daunting task. You have to sacrifice one or the other. The sole purpose of our website is to alleviate your academic burdens. We ensure that you do not fail in your classes and you get good grades consistently. We understand that there is a need for academic help.
We acknowledge that our clients are not dumb or lazy but only need academic life need help in order to live a balanced life and make ends meet. We make it our core priority to ensure that all assignments are done and submitted before the stipulated deadlines. All our writers are graduates. They are competent in handling the clients’ assignments. We step in to help you with any and all of your assignments. Our assignment help service ensures that you never miss a grade or deadline.
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
$10 page
$13 page
$14 page
Our prices depend on the urgency of your assignment, your academic level, the course subject, and the length of the assignment. Basically, more complex assignments will cost more than simpler ones. The level of expertise is also a major determinant of the price of your assignment.
If you need professional help with completing any kind of homework, is the right place to get it. Whether you are looking for essay, coursework, research, or term paper help, or with any other assignments, it is no problem for us. At our cheap essay writing service, you can be sure to get credible academic aid for a reasonable price, as the name of our website suggests. For years, we have been providing online custom writing assistance to students from countries all over the world, including the US, the UK, Australia, Canada, Italy, New Zealand, China, and Japan.
Our cheap essay writing service has already gained a positive reputation in this business field. Understandably so, since all custom papers produced by our academic writers are individually crafted from scratch and written according to all your instructions and requirements. We offer APA, MLA, or a Chicago style paper in almost 70 disciplines. Here, you can get quality custom essays, as well as a dissertation, a research paper, or term papers for sale. Any paper will be written on time for a cheap price.
Using our cheap essay writing help is beneficial not only because of its easy access and low cost, but because of how helpful it can be to your studies. Buy custom written papers online from our academic company and we won't disappoint you with our high quality of university, college, and high school papers. Although our writing service is one of the cheapest you can find, we have been in the business long enough to learn how to maintain a balance between quality, wages, and profit. Whenever you need help with your assignment, we will be happy to assist you.
It might seem impossible to you that all custom-written essays, research papers, speeches, book reviews, and other custom task completed by our writers are both of high quality and cheap. It is surprising, but we do have some tricks to lower prices without hindering quality.
To start using our services, it’s enough to place a request like “I need a writer to do my assignment” or “Please, write an essay for me.” We have a convenient order form, which you can complete within minutes and pay for the order via a secure payment system. The support team will view it after the order form and payment is complete and then they will find an academic writer who matches your order description perfectly. Once you submit your instructions, while your order is in progress and even after its completion, our support team will monitor it to provide you with timely assistance.
Hiring good writers is one of the key points in providing high-quality services. That’s why we have entry tests for all applicants who want to work for us. We try to make sure all writers working for us are professionals, so when you purchase custom-written papers, they are of high quality and non-plagiarized.
Our cheap essay writing service employs only writers who have outstanding writing skills. The quality of all custom papers written by our team is important to us; that is why we are so attentive to the application process and employ only those writers who can produce great essays and other kinds of written assignments. All our writers are graduates. They are competent in handling the clients’ assignments. We step in to help you with any and all of your assignments. Our assignment help service ensures that you never miss a grade or deadline.
All our cheap essays are customized to meet your requirements and written from scratch. Our writers have a lot of experience with academic papers and know how to write them without plagiarism. Moreover, at our academic service, we have our own plagiarism-detection software which is designed to find similarities between completed papers and online sources. You can be sure that our custom-written papers are original and properly cited.
Our essay writing service has a 0% plagiarism tolerance. We are well aware of the dangers of plagiarism. Plagiarism is academic suicide. Our essay writing service ensures that all papers are original. We do not sell pre-written papers. All papers are written from scratch as per the instructions. We pass our papers through powerful anti-plagiarism software such as SafeAssign and TurnItIn.
Our cheap essay writing service tries to always be at its best performance level, so each customer who pays money for paper writing can be sure that he or she will get what is wanted. On the off chance that you don’t like your order, you can request a refund and we will return the money according to our money-back guarantee.
There can be a number of reasons why you might not like your order. If we honestly don’t meet your expectations, we will issue a refund. You can also request a free revision, if there are only slight inconsistencies in your order. Your writer will make the necessary amendments free of charge. You can find out more information by visiting our revision policy and money-back guarantee pages, or by contacting our support team via online chat or phone.
We know how important any deadline is to you; that’s why everyone in our company has their tasks and perform them promptly to provide you with the required assistance on time. We even have an urgent delivery option for short essays, term papers, or research papers needed within 8 to 24 hours.
We appreciate that you have chosen our cheap essay service, and will provide you with high-quality and low-cost custom essays, research papers, term papers, speeches, book reports, and other academic assignments for sale. We beat all deadlines. We can also handle urgent orders with deadlines as short as 1 hour. Our urgent paper writing service does not compromise on quality due to the short deadline. On the contrary, our essay writers have a lot of experience which comes in handy in such situations.
We provide affordable writing services for students around the world. That’s why we work without a break to help you at any time, wherever you are located. Contact us for cheap writing assistance. Our impeccable customer support team will answer all your questions and help you out with any issues.
Proceed to order pageDelivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more