Negotiations Workshop

By: Professor Milagros Gastelumendi Hilbck

DEFNITION
1. Is the acceleration and intensification
of interaction and integration among
the people, companies, & government
of different nations.
2. Or the integration of the world
economies based on the reduction of
tariffs barriers, increasing the
movement of trade, capital, technology
& people.



1.-Globalization implies the opening of local
and nationalistic perspectives to a broader
outlook of an interconnected and
interdependent world with free transfer of
capital, goods, and services across national
frontiers.
2.- However, it does not include unhindered
movement of labor and, as suggested by
some economists, may hurt smaller or fragile
economies if applied indiscriminately.
1. What does globalization allow us to do?

1. 1.Obtain more
variety of products.
2.Better quality.
3.Lower prices.

1. Factors that propel globalization:
Increasing an expansion of technologies.
Liberalization of trade beyond
borders/ease on borders control.
Developing services that facilitate the
international buisness.
Increase and improve in facilities to break
language barriers.

1. Improve global competitiveness.
2. Willingness to accept new culture.
3. Welcome new people; its a global thing.
4. Create more jobs.



1. Disadvantages of globalization:
Limits national sovereignity.
Globalization has resulted in the spread of
infectious diseases (people are no longer
restricted on worldwide movement.)
Affects local/national markets.
Exploitation of cheaper labor.
Lower wages rates of unskilled workers in
wealthy advanced countries.
1. Why are international businesses important
for the companies?
Expand sales / more consumers.
Acquisition of local sources: = cheaper
supply chain.
Minimize risks.

1. Emerge of Global Institutions
2. Globalization creates the need for
instituitons to help manage, regulate &
create better policies in global market
places.
3. GATT: was established to regulate the
word trading system.
4. Remove barriers for the free flow of trade
and capital between nations.
5. URUGUAY ROUND created de World Trade

Organization WTO ( OMC ), replaces GATT.
WORLD TRADE ORGANIZATION
159 Nations members (97% of world trade).
Assumed prior GATT agreements and
extended GATT to include Services and
Intellectual Property.
Promotes lower trade Barriers and
investment .
INTERNATIONAL MONETARY FUND AND
WORLD BANK.
IMF and the World Bank were created in 1944
by 44 Nations that met at Bretton Woods,
New Hampshire .
IMF was created to mantain order in the
International monetary System.
World Bank was created to promote economic
development through low interest loans.
UNITED NATIONS
Established in 1945 by 51 nations.
Commited to preserving Peace through
International Cooperation and collective
security.
191 Members (Countries).
Purposes
Mantain International Peace and Security.
Develope friendly relations among nations.
Cooperate in solving international problems &
promoting respect for human rights.
Foreign Direct Investment (FDI)
Defined as:
Firms that invest in resources in business
activities outside its home center.
Movement of capital across national frontiers
in a manner that grants the investor control
over the acquired asset.
Ex. MultiNational Enterprises