INTB 3355 1nd Edition Lecture 1 Outline of Last Lecture I. Course syllabusOutline of Current Lecture I. What is globalization?A. The story of the six blind menII. Framework for Global BusinessIII. Introducing to Globalizationa. Worldwide interconnectednessb. Globalization denotesIV. Two eras of globalizationa. 1850 (1820) – 1914b. 1980 (1945) – presentCurrent LectureI. What is globalization?The story of the six blind men is about six blind men’s perspectives about an elephant. Each of them touched a different part of the elephant and had a different description about it, either it looked like a wall, a snake, a rope, etc… Regardless, all of them were right. Globalization is similar. It has many dimensions and aspects, and they are all important. You are from one part of the world doesn’t mean you know everything aboutthe world.II. Framework for Global BusinessFramework for global business has two views: Institution basedview and resource based view. (Institution means law)a.Institution based view can’t be controlled. It has formal and informal rules.-Formal rules are official and hard to be changed such as rules against robbery, terrorism, etc… -Informal rules are unofficial, i.e the corruption in Romania where people know that it is wrong but there is no legislature against that.b.Resource based view, unlike institution based view, is controllable. It is your firmspecific resources and capabilities (How is your firm organized? What determines the success and failure of firms around the globe?)These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.III. Introducing to Globalizationa. Worldwide interconnectedness This is the definition of globalization. Worldwide interconnectedness isgrowing in: Extensity, Intensity, Velocity, Impact- Extensity and intensity are how much is happening- Velocity is technology and communication. For example, the incident in Mexico where people didn’t receive enough resources- Impact is events happening in other parts of the worldb. Globalization denotes are relative de-territorialization of social, economic andpolitical activity and relative de-nationalization of powerV. Two eras of globalizationa. 1850 (1820) – 1914Industrial revolution – Worlld War IIIIs there an alternative for globalization? Possibly.b. 1980 (1945) – present1950’S-1970’S:- Countries following communism were China, Soviet Union- Countries following protectionism were Argentina, Brazil, India- In contrast, there were other countries called “Asian Tigers” including Hong Kong, Singapore, Korea, Taiwan- In the late 1970’s, Latin America, then came Central and Easter Europe in 1980’s, India in 1990’s, and China in 2000 joined the world economy. This has been defined as an Accelerated