Overview of International Business and Globalization.ppt -...

Overview of International Business and
Overview of International Business and
Globalization
Globalization
 Jashim Uddin, PhD
Associate Professor, East West University, Bangladesh

I
nternational Business (IB) defined as all about commercial
transactions-private and governmental-between two or more
countries. These transactions include sales, investments, and
transportation that take place between two or more countries.
G
lobalization is a process of interaction and integration among
the people, companies, and governments of different nations, a
process driven by international trade and investment and aided by
information technology. This process has effects on the
environment, on culture, on political systems, on economic
development and prosperity, and on human physical well-being in
societies around the world.
Globalization refers to the widening set of interdependent
relationship among people from different parts of a world that
happens to be divided into nations. The term sometimes refers to
the elimination of barriers to international movement of goods,
services, capital, technology, and people that influence the
integration of the world economies.

W
hy Companies Engage in IB

To expand sales: A country’s market size always
have a limit and reduction of AFC (average fixed
cost) require increased production volume

To acquire resources: Natural resources and
locations, products, services, components,
technologies, information from another country can
not be usable without IB

To minimize risk: Taking the advantage of
business cycle situations-recessions to expansions-in
different countries. Diversify suppliers across
countries. Counter competitor’s advantage.

F
orces behind globalization

Expansion of technology in transportation and
communication networks

Liberalization of cross-border trade