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Globalization is driven by trade, foreign direct investment (FDI), and regional cooperation, reshaping local economies and markets. FDI plays a crucial role, often focusing on building new facilities, navigating local government requirements, and securing local financing. Companies must carefully evaluate labor, management structures, goodwill, and brand identity when investing. However, countervailing forces such as religion, government policies, and geographic groups can influence globalization, presenting both opportunities and challenges for businesses aiming to thrive in a global economy.
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Globalization is happening because of: • Trade • FDI (Foreign Direct Investment) • Regional Cooperation • Interest Groups
FDI – Build Greenfield • No available acquisition • Local government requirements • Local financing for construction • Problems associated with local companies - management - labor - technology - debt - reputation
When buying FDI’s look at • Labor • Management • Organizational structure • Goodwill • Production facility • Brand identification • Easier access to local capital • Quicker start up • Avoid inefficiencies
Countervailing Forces to Globalization • Religion • Government • Geographic Groups • Regionalization
