International business exam 1 study guide
Chapter 1:
•
International business is any commercial transaction that crosses the borders of two or more
nations.
•
by imports—goods and services purchased abroad and brought into a country.
•
exports—goods and services sold abroad and sent out of a country.
•
Large companies from the wealthiest nations
still dominate international business. But
firms
from emerging markets
(such as Brazil, China, India, and South Africa) now vigorously compete
for global market share.
•
Small and medium-sized companies
are also increasingly active in international business, largely
because of advances in technology.
•
A
multinational corporation (MNC)
is a business that has direct investments (in the form of
marketing or manufacturing subsidiaries) abroad in multiple countries
•
the
born global firm
—a company that adopts a global perspective and engages in international
business from or near its inception.
•
Globalization
- trend toward greater economic, cultural, political, and technological
interdependence among national institutions and economies. Globalization is characterized by
denationalization
(national boundaries becoming less relevant) and is different from
internationalization
(entities cooperating across national boundaries).
•
Globalization
of markets
refers to the convergence in buyer preferences in markets around the
world.
•
Globalization of production
refers to the dispersal of production activities to locations that help
a company achieve its cost-minimization or quality-maximization objectives for a good or service.
This includes the sourcing of key production inputs (such as raw materials or products for
assembly) as well as the international outsourcing of services.
•
Globalization of Markets
•
Benefits
•
Reduces marketing costs
•
Creates new market opportunities.
•
Levels uneven income streams:
•
Local buyers’ needs:
•
Global sustainability
•
Globalization of Production
•
Benefits
•
Access lower-cost workers:
•
Access technical expertise:
•
Access production inputs:
•
Falling Barriers to Trade and Investment
•
General Agreement on Tariffs and Trade (G A T T)
•
World Trade Organization (W T O)
•
Other
•
International organizations
•
The World Bank
•
The International Monetary Fund (I M F)
•
Regional trade agreements
•
Trade and national output
e-business (e-commerce)
—the use of computer networks to purchase, sell, or exchange products; to
service customers; and to collaborate with partners. E-business is making it easier for companies to
make their products abroad, not simply to import and export finished goods.
E-mail and videoconferencing
•
The Internet
•
Company intranets and extranets:
Internal company websites and information networks
(
intranets
) give employees access to company data using personal computers.
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- Fall '08
- Staff
- Business, Economic system, Planned economy, nations
