Peng Inst Chapter 1 REVISED (2nd Edition)

Peng Inst Chapter 1 REVISED (2nd Edition) - Peng...

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Peng Global Business 2e Chapter 1 Globalizing Business 1
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LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. Explain the concepts of international business and global business 1. Give three reasons why it is important to study global business 1. Articulate one most fundamental question and two core perspectives in  the study of global business 1. Identify three ways of understanding what globalization is 1. State the size of the global economy and its broad trends and  understand your likely bias in the globalization debate 2
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WHAT IS GLOBAL BUSINESS? IB is typically defined as 1) a business firm that engages  in international (cross-border) economic activities or 2) the  action of doing business abroad. IB textbooks usually take the foreign firm’s perspective  i.e.,  how to enter foreign markets and/or how to select an  alliance.   The foreign entrant is usually a  multinational enterprise  (MNE)  – a firm that engages in foreign direct investments. Foreign direct investment  - investments in, controlling,  and managing value-added activities in other countries. 3
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WHAT IS GLOBAL BUSINESS? Domestic firms do not “sit around” in  the face of foreign entrants. In Focus 1.1 shows how domestic  Chinese firms developed  innovations in the video game  responded to foreign entrants.   4
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WHAT IS GLOBAL BUSINESS? The book defines  global business  as business  around the globe, including both 1) international  (cross-border) activities and 2) domestic business  activities. The book goes beyond competition only in  developed economies by devoting attention to  competitive battles waged in  emerging  economies  and the  base of the global pyramid 5
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Emerging Economies (emerging markets )     countries that are starting to emerge as new  players in the world economy.   Gross Domestic Product (GDP)    the sum  of value added by resident   firms, households,  and government operating in an economy. Purchasing Power Parity (PPP) - 
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This note was uploaded on 03/16/2011 for the course MGMT 418 taught by Professor Byles during the Spring '11 term at VCU.

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Peng Inst Chapter 1 REVISED (2nd Edition) - Peng...

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