Background for International BusinessGlobalizationrefers to the widening set of interdependent relationships amongpeople from different parts of the world that happens to be divided into nations. Itsometimes refers to the elimination of barriers to international movements of goods,services, capital, technology, and people that influence the integration of worldeconomies.EPLANATION: process of integration and international influence of economis andcultures. Globalization is not only and= excahnge of goods but also an exchange ofideas. The more technology advances, and the more transportation improves, the moreglobal outlets are revealed.GLOBALIZATION LETS COUNTRIES MOVE CLOSER OT EACH OTHER. PEOPLE,COMPANIES AND ORGANIZATIONS IN DIFFERENT COUNTRIES CAN LIVE ANDWORK TOGETHER.WE CAN EXCHANGE GOODS, MONEY AND IDEAL FASTER AND CHEAPER THANEVER BEFORE.MODERN COMMUNICATION AND TECCHONOLGY LIKE THE INTERNET,CELLPHONES OR SATELLITE TV HELPS US INOUR DAILY LIVESEXAMPLES: GLOBALIZATION IS GROWING QUICKLY. A PERSON FROM USA CANPRODUCE CARS AND THEN SELL THEM IN THE PHILIPPINES. AND ALSO FASTFOOD COMPANIES CAN OPEN SHOPS AROUND THE WORLD.International Businessis defined as all commercial transactions (sales,investments, and transportation) that take place between two or more countries.EXPLANATION:cross border transaction between individuals, businesses orgovernment entities. The transaction can be of anything that has value,EXAMPLESinclude physical goods, capital and knowledge.Importing and exporting is the most commonly method that can be used as afoundation in international business. Importing means inflow of goods while exportingmeans outflow of goods.The Forces Driving GlobalizationSince globalization is constantly growing, it is stimulated by several factors like:1.Increase in and application of technologyIt refers to the modern marvels which is efficient means of production thatcame from technical advances. These include new products as well as newapplications of old products. It also includes advances in communications andtransportation.
EXPLANATION: THE WORLD HAS BEEN TRANSFORMED INTO A GLOBAL VILLAGEDUE TO IMPORTANT DISCORIES AND DEVELOPMENTS IN SCIENCE ANDTECHNOLOGY.transportation--- people can move around the world fairly quickly due to improvedtransportation system. Airlines, ships, large vehicles, and others. Goods can betransported beyond the national border on the same day.2.Liberalization of cross-border trade and resource movements