GLOBALIZATION AND INTERNATIONAL BUSINESS
and show how they affect each other
To understand why companies engage in international business and why international
business growth has accelerated
To discuss globalization’s future and the major criticisms of globalization
To become familiar with different ways in which a company can accomplish its global
To apply social science disciplines to understanding the differences between international
and domestic business
has become a major socioeconomic force and topic of debate in the twenty-first
Chapter One examines the forces that are driving this phenomenon, as well as the
often passionate criticisms of the process.
It reviews the objectives that firms pursue when
they engage in international business activities and describes the various modes of entry that
may be used.
It also notes the terminology that has come into existence as new types of
organizations have evolved.
The chapter concludes with a discussion of the ways in which
international business differs from domestic business.
THE GLOBAL PLAYGROUND
[See Map 1.1]
Although not everyone agrees that the unbridled globalization of professional sports is all for
the good, the process and possibilities are definitely far-reaching.
Today’s satellite television
broadcasts enable fans to watch top players and teams in nearly any sport from almost
anywhere on earth.
Professional teams scour the world to find and develop the most talented
athletes, and players forsake home country allegiances in their pursuit of the world’s highest
Further, the more people that tournaments can attract through attendance and
television, the more money that sponsors and advertisers are willing to pay—and the greater the
likelihood that those sponsors and advertisers will have business operations that span the globe.
In addition, sports and nonsports companies alike pay famous athletes and teams generous sums
to endorse their products.
Successful teams have opened shops both domestically and
internationally to sell souvenirs bearing their logos and may make more money on merchandise
Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall
than from TV rights and sponsorships combined.
Most recently, as teams and leagues have
begun to seek income opportunities outside their home countries, foreign investors have
acquired a U.S. baseball team; another group of foreign investors acquired controlling interest
in a British soccer (football) team.
Map 1.1 outlines national sports in a variety of countries
and can be used to discuss how culture impacts globalization.
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