Introduction to International Business:

Topic:
The impact of globalization in the economy and its aspects in London

Kingston University Summer School Program 2010 Majd Haddaji

The developments of communication, transportation and the trade have enhanced the integration of the economy. We no more talk about national economy but we talk about global economy. The markets are much more open. Many countries have signed conventions to facilitate the trade between each other like the UE. Others even if they had not organized themselves into an economic block, they deal a lot with each other. Foreign direct investment and capital flows are important reason of globalization. Chinese companies are baying companies in the USA, as well as middle east companies are baying or participating in the capital of European companies. These transfers of capital is facilitating by the stock exchange and the technology. The shares of a British company are sold all over the world. So the ownership is no more local but global. Let’s give an example of the UK to illustrate this idea. Chelsea FC is an English professional group based in London. The owner of the group is a Russian person named Roman Abramovich. Harrods is an another illustration. It is a British store, one of the largest in UK. It is owned recently by the Royal Qatari Family. Harrods: Harrods is owned by Qatar Investment Authority London’s Harrods is planning to open a store in Shanghai (is still under discussion)1 300,000 visitors per day and Sales in 2001 are 486 Million pounds2 It operates a number of in-store boutiques, in Takashima department store in Singapore for example, and has a number of shops in a number of airports (London, Frankfurt, Hamburg…) Harrods has also other activities like Harrods casino online gambling, Air Harrods…

-

Chelsea FC: Chelsea FC has a Russian owner; Roman Abramovich, an American chairman; Bruce Buck and an Italian Manager; Carlo Ancelotti. Gross turnover of £248 million