Chapter 1- International Business and Globalization-...

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CHAPTER 1International Business andGlobalization
What is Globalization?
Why you should study GlobalizationThroughouthistory,expandedhumanconnections have extended people's access tomore varied resources, products, services, andmarkets.We've altered the way we want and expect tolive, and we've become more deeply affected(positively and negatively) by conditions outsideour immediate domains.It enables us to get more variety, better quality,or lower prices.
What is International Business (IB)?International Business (BI)International business is a mechanism to bring aboutglobalization.It consists of all commercial transactions betweentwo or more countries.It makes up a large and growing portion of theworld's business.International business has grown rapidly in recentdecadesbecauseoftechnologicalexpansion,liberalized government policies on cross-border
movements (goods, services, and the resources to producethem), the development of services to facilitate internationaltransactions, consumer desires to buy foreign products andservices, increased global competition, changing politicalsituations, and cooperation in dealing with transnationalproblems and issues. Because of these factors, companies useforeign countries increasingly as a source of both productionand sales.Global events and competition affect almost all industriesand companies, large and small. Not only companies selloutput and secure supplies and resources abroad, theycompete against products, services, and companies fromforeign countries.
Why you should study IBMost companies are either international or competeinternational companies.Modesofoperationsmaydifferfromthoseuseddomestically.It helps managers to decide where to find resourcesand to sell.The best way of conducting business may differ bycountry.Anunderstandinghelpsyoumakebettercareerdecisions.An understanding helps you decide what governmentalpolicies to support.
The relationship of Globalization and IBThe global connectionsbetween suppliesandmarkets result from the activities of IB, which areallcommercialtransactions(includingsales,investments, and transportation) that take placeamong countries. Private companies undertakesuch transactions for profit; governments mayundertake them either for profit or for otherreasons.

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Term
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Globalization, Invest in America

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