III-OVERVIEW-OF-INTERNATIONAL-BUSINESS-AND-GLOBALIZATION (1).pdf

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OVERVIEW OFINTERNATIONAL BUSINESSAND GLOBALIZATION
INTRODUCTIONInternational Businessconsists of all commercial transactions between two or more countries.the goal ofprivate businessis to make profits.government businessmay or may not be motivated by profit.Globalizationrefers to the widening set of interdependent relationshipsamong peoplefrom different parts of a world that happens to be divided into nations.elimination of barriersto international movements of goods, services,capital, technology and people that influence integration of worldeconomies.
INTRODUCTIONStudying international business is important because:Most companies are either international or compete with international companiesModes of operations may differ from those used domesticallyThe best way of conducting business may differ by countryAn understanding helps you make better career decisionsAn understanding helps you decide what governmental policies to support
Factors in International Business Operations
THE FORCES DRIVING GLOBALIZATIONGlobalizationhas been growingis less pervasive than generally thoughthas economic and noneconomic dimensionsis stimulated by several factors
Factors in Increased Globalization1.Increase in and Application of Technologyoincludes new products, such as hand-held mobile technology devices and newapplication of old productsoReasons for technical developmentsoPopulation growthoRising productivityoAdvances in Communication and Transportationoallows people to discover and desire products and services developed in farparts of the world
Factors in Increased Globalization2.Liberalizationof Cross-Border Trade and Resource MovementsoMost governments have reduced restrictions on the movements of goods, servicesand resources across thecountry’sborders because of these three reasons.oTheir citizens want a greater variety of goods and services at lower prices.oCompetition spurs domestic producers to become more efficient.oThey hope to induce other countries to lower their barriers in turn3.Servicesthe Support International BusinessoCompanies and governments have developed a variety of services that facilitateglobal commerce.
Factors in Increased Globalization4.Growthin Consumer PressuresMore consumers know more today about products and services available in othercountries, can afford to buy them, and want the greater variety in quality, price,and characteristics that access to them offers.5.Increasein Global CompetitionoBorn-global companiesstart out with a global focusoClustering or agglomerationnew companies locate in areas with numerouscompetitors and suppliers.6.Changesin Political Situations and Government PoliciesToday, only a few countries do business almost entirely within a political bloc.

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Term
Fall
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Tags
Economic system, gross domestic product, Social factors

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