Round 2: Global Marketplace

1
Round 2 Global Marketplace

• Cars, Tech and Pills

2
What Is Globalization?

• a process of interaction and integration among
  the people, companies, and governments of
  different nations, a process driven by
  international trade and investment and aided by
  information technology.
• Governments also have negotiated dramatic
  reductions in barriers to commerce and have
  established international agreements to promote
  trade in goods, services, and investment. Taking
  advantage of new opportunities in foreign
  markets, corporations have built foreign
  factories and established production and
  marketing arrangements with foreign partners.
• Technology has been the other principal driver of
  globalization. Advances in information
  technology, in particular, have dramatically
  transformed economic life.
• Globalization is deeply controversial, however.
• Proponents argue that it allows poor countries
  to develop economically and raise their standards
  of living,
• opponents claim that the creation of an
  unfettered international free market has
  benefited multinational corporations in the
  Western world at the expense of local
  enterprises, local cultures, and common people.

3
UNCTAD and Globalization

• contributes to the international debate on
  globalization and the management of its
  consequences for developing countries through its
  program on Globalization and Development
  Strategies
• promotes policies at the national, regional and
  international level that are conducive to stable
  economic growth and sustainable development
• provides technical support to developing
  countries in their efforts to integrate into the
  international financial system and to manage
  their external debt, particularly Africa

4
UN Conference on Trade and Development (UNCTAD)

• 1964 first conference held at the request of
  developing nations in Geneva
• Conference held every 4 years intergovernmental
  bodies meet in between permanent secretariat
• Forum where Group of 77 (today 131) voice their
  concerns
• Helped to identify LDCs (least developed
  countries) 1971
• Accomplishments
• Generalized system of preferences (1968) (market
  access)
• International Commodities Agreements (export
  prices)
• Code of Conduct for Liner Conferences
• Control of Restrictive Business Practices
  (competition rules)

5
UNCTAD Trade and Development Report

• Some momentum towards the achievement of
  Millennium Development Goals (MDG) as a result of
  global expansion in trade since 2002
• Remaining concerns about global inequity in
  standards of living and trade imbalances

6
UNCTADs World Investment Report 2006

• focuses on the rise of foreign direct investment
  (FDI) by transnational corporations (TNCs) from
  developing and transition economies.
• TNCs are emerging as major regional - or
  sometimes even global - players.
• Asia remained the main magnet for FDI flows,
  followed by Latin America, where re-invested
  earnings have played a major role
• The number of TNCs worldwide 77,000, 20,000 of
  which originate in developing countries

7
Features of the top 100 trans-national
corporations (TNCs)

• 6 industries account for 60 of the activity of
  the top 100 TNCs
• motor vehicles,
• pharmaceuticals,
• telecommunications,
• utilities,
• petroleum,
• electronic/electrical equipment
• General Electric, Ford Motor and Vodafone head
  the list
• US has 25 of the 100 companies EU countries
  account for 53 more
• Companies from 5 developing countries are
  represented China, Hong Kong, Malaysia,
  Republic of Korea, Singapore

8
Technology

• Improvements in the early 1990s in computer
  hardware, software, and telecommunications have
  caused widespread improvements in access to
  information and economic potential.

9
UNCTAD and Technology

• UNCTAD XI June 2004 announces ICT as Enabler for
  Growth, Development and Competitiveness
• Core indicators adopted February 2005
• Transfer of Technology for Successful
  Integration into the Global Economy consists of
  a number of case studies on TOT issues in
  individual industries in selected developing
  countries
• A broader look at transfer of technology (TOT)
  that has resulted in increased efficiency and
  global competitiveness of LDC firms

10
Transfer of Technology Case Study of
Pharmaceutical Industry in India

• 1990s removal of protectionist tariff walls
• Paper is case study of Ranbaxy Laboratories as an
  example of one pharmaceutical laboratorys
  response to changing labor policies
• Changes in patent policies discouraged foreign
  investment

11
MDG 8 the production of affordable
pharmaceuticals in developing countries

• MDG 8, Target 17 ("In cooperation with
  pharmaceutical companies, provide access to
  affordable essential drugs in developing
  countries").
• Pfizer in 2000 agreed to donate Diflucan to South
  African government to assist in the infections
  secondary to HIV