Geopolitics&IBLSession2

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GPE/Lecture Session 2/July 9th, 2011

Geopolitics

andInternational Business

An Introduction

Faculty: Dr.MV lakshmi

Professor of International Relations


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Geopolitics & International Business

Presentation Structure

1.1 Introduction

1.2 Geopolitics Concept, Definition, Nature and Importance

1.3 IB Concept, Definition, Nature and Scope

1.4 Redefining Geopolitics for the 21st century

1.5 A Geopolitical Framework for International Business

1.6 Summing Up


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1.1 Introduction

Why study Geopolitics for IB?

What is Geopolitics? What is International Business?

Geopolitics grows as a separate field of study1899 and later

Growth of IB as an academic discipline1960s, 1970s,1980s,1990s

IB is an interdisciplinary field of study


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1.1 Introduction

Why study Geopolitics for IB?

The Global Business Environment is

complex with multiple actors and

influences at the global, international,

regional, national and local level.


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Why study geopolitics? Geopolitical analysis has nearly always

been the epitome of a truly global

perspective.

Companies doing business

internationally are grappling with

political issues that sometimes surpriseeven the most experienced.- (PWC,2010)


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Why study geopolitics? Fully understanding the global

geopolitical ecosystem is.. key. Without

knowledge of different national political

systems, regulatory networks and

business cultures, an executive is working

at a disadvantage. Leadership: What Essential Skills Are Required for the New Reality.


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1.2 GEOPOLITICS: Concept, Definition, Nature and Importance

Evolution of the concept of Geopolitics

- The term Geopolitics first coined by Rudolf Kjellen, a Swedish Political Scientist

- As a field of study, Geopolitics came into prominence inspired by the work of twomajor nineteenth-century scholars: Alfred Thayer Mahan (1840-1914) and SirHalford John Mackinder (1861-1947)

- Another Geopolitical theoreticians - Friedrich Ratzel (1844-1904)

- widespread use in the 1930s


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1.2 GEOPOLITICS: Concept, Definition, Nature andImportance

Evolution of the concept of Geopolitics..

- Lebensraum

- Heartland Theory

- Rimland

- Geopolitics is a serious field of inquiry (despite its

unfortunate association with Nazi Germany)


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1.2 GEOPOLITICS: Concept, Definition, Nature and Importance.

Understanding the importance of the concept of Geopolitics

- The various dimensions of geopolitics coalesce around the

significance of the location of states on the world map

- A state that is landlocked between two other states is likely to havevery different foreign policy objectives from one that is surroundedby sea or natural barriers

- For geopolitical analysts, there is also an important connectionbetween location, wealth(resources), and power


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Importance of Geopolitics..

- At the heart of geopolitical analysis is a belief that states economic

and military capability, their position in the hierarchy of states, andhow they relate to their neighbours are the consequence ofgeographical factors

- In International Relations, geography is destinybut has thischanged in the era of 21st century globalization?

- There are many ways of interpreting state behaviour Geopoliticsis one of them


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Some definitions:

Geopolitics is the study of the influence of geographic factors on statebehaviour how location, climate, natural resources, population, andphysical terrain determine a states foreign policy option and its position inthe hierarchy of states

The study of the effects of economic geography on the powers of

the state-

http://www.webdictionary.co.uk/definitio


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`Geopolitics` is the study that analyzes geography,

history and social science with reference to spatial

politics and patterns at various scales (ranging fromhome, city, region, state to international and

cosmopolitics). It examines the political, economic and

strategic significance of geography, where geography is

defined in terms of the location, size, function, and

relationships of places and resources.

(http://en.wikipedia.org/wiki/Geopolitics


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Geopolitics is:

1. The study of the relationships among politics

and geography, demography, and economics;especially, with respect to the foreign policy ofa nation.

2. The influence of geographic factors, population

distribution, and natural resources on a nation'sforeign policy; that is, the efforts of a nation tocontrol a canal, trade route, oil supply, etc...(Found on http://www.wordinfo.info/words/index/inf)


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Geopolitics & International Business1.3 INTERNATIONAL BUSINESS - Concept, Definition, Nature and Scope

Evolution of the concept ofInternational Business

- IB as old as mankind

- Early developments in international trade provide basis forunderstanding the concept of todays IB operations

-No nation inhabits an economic vacuum: its industries, commerce,

technology, standard of living, and all other facets of its economyare related to the economies of foreign nations by complex flows ofgoods, capital, technology and enterprise


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1.3 INTERNATIONAL BUSINESS - Concept, Definition, Nature andScope

Some Definitions of International

Business

In its simplest form, any business transaction(including

investments) that involves persons or firms of more than one

country may be described as international business

International Business includes international trade in goods and

services and investments.


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1.3 INTERNATIONAL BUSINESS - Concept, Definition, Nature and

Scope

Some Definitions.

International business is a field of study and

practice that encompasses public and privatebusiness activity affecting the persons or

institutions of more than one national state,

territory.. - Robinson,1978

The term international business describes a

broad spectrum of business activities that

transcends national frontiers.


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1.3 INTERNATIONAL BUSINESS-

Concept, Definition, Nature andScope

Changing nature of International Business

Expanding scope of International Business in the era of21st century globalization

Growing complexity of the International BusinessEnvironment and the national business environments

Need for a Geopolitical Framework for understandingthe International Business environment


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1.4 Redefining Geopolitics for the 21st Century

The paradigm shift in Geopolitics in the post cold warera Globalization, Regionalism, Bilateralism

The geo-economic shifts of the 21st century and the

changing geopolitical equations

Evolving geopolitical strategies to match the geo-

economic realities


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1.5 A Geopolitical Framework for InternationalBusiness

Geopolitics encompasses the social, political,cultural, demographic and economicdimensions of the external environment

Nation-States are highly interdependent -International Relations and InternationalBusiness have acquired new dynamism


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It is imperative for developing a geopolitical framework

for understanding the conduct of International Business

Despite the fact that most, if not all, ofthe worlds problems are

interdisciplinary, informed citizens, whocan think broadly across disciplines, willbe those who can contribute to sensibleaction for local problems with a global

flow-on- Knowledge ThatCounts in a GlobalCommunity Exploring the Contribution of IntegratedCurriculum (Leonie Rennie, Curtin

University, Australia, Grady Venville, University of Western Australia, Australia and John Wallace University ofToronto, Canada


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Summing Up

Documents

Geopolitics&IBLSession2