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P ART O NE B ACKGROUND FOR I NTERNATIONAL B USINESS CHAPTER ONE GLOBALIZATION AND INTERNATIONAL BUSINESS OBJECTIVES To define globalization and international business and show how they affect each other To understand why companies engage in international business and why international business growth has accelerated To discuss globalizations future and the major criticisms of globalization To become familiar with different ways in which a company can accomplish its global objectives To apply social science disciplines to understanding the differences between international and domestic business CHAPTER OVERVIEW Globalization has become a major socioeconomic force and topic of debate in the twenty-first century. Chapter One examines the forces that are driving this phenomenon, as well as the often passionate criticisms of the process. It reviews the objectives that firms pursue when they engage in international business activities and describes the various modes of entry that may be used. It also notes the terminology that has come into existence as new types of organizations have evolved. The chapter concludes with a discussion of the ways in which international business differs from domestic business. CHAPTER OUTLINE OPENING CASE: THE GLOBAL PLAYGROUND [See Map 1.1] Although not everyone agrees that the unbridled globalization of professional sports is all for the good, the process and possibilities are definitely far-reaching. Todays satellite television broadcasts enable fans to watch top players and teams in nearly any sport from almost anywhere on earth. Professional teams scour the world to find and develop the most talented athletes, and players forsake home country allegiances in their pursuit of the worlds highest salaries. Further, the more people that tournaments can attract through attendance and television, the more money that sponsors and advertisers are willing to payand the greater the likelihood that those sponsors and advertisers will have business operations that span the globe. In addition, sports and nonsports companies alike pay famous athletes and teams generous sums to endorse their products. Successful teams have opened shops both domestically and internationally to sell souvenirs bearing their logos and may make more money on merchandise Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 1 than from TV rights and sponsorships combined. Most recently, as teams and leagues have begun to seek income opportunities outside their home countries, foreign investors have acquired a U.S. baseball team; another group of foreign investors acquired controlling interest in a British soccer (football) team. Map 1.1 outlines national sports in a variety of countries and can be used to discuss how culture impacts globalization.... View Full Document

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