International Business Management Final Exam Study Notes
Lesson 1: Globalization
1. Define international business and discuss its scope
- International
... [Show More] business is any commercial transaction that crosses the border of two or
more nations
- You don’t have to set foot outside a small town to find evidence of international business.
No matter where you live, you’ll be surrounded by imports—goods and services
purchased abroad and brought into a country
- Your counterparts around the world will undoubtedly spend some part of their day using
your nation’s exports—goods and services sold abroad and sent out of a country
- Every year, all nations of the world export goods and services worth nearly $15 trillion
2. Define the term globalization
- Globalization is the trend toward greater economic, cultural, political, and technological
interdependence among national institutions and economies
- Trend characterized by denationalization (national boundaries becoming less relevant)
and is different from internationalization (entities cooperating across national boundaries)
- The greater interdependence that globalization is causing means an increasingly freer
flow of goods, services, money, people, and ideas across national borders
3. Describe the process of globalization and how it affects markets and production
- Globalization is the trend toward economic, cultural, political, and technological
interdependence among national institutions and economies
- Its marked by “denationalization” in which national borders are becoming somewhat less
relevant
- The globalization of markets helps a company to (1) reduce costs by standardizing
marketing activities, (2) explore international markets if the home market is small or
saturated, and (3) level income streams, especially for makers of seasonal products
- The globalization of production helps a company to (1) access low-cost labour and
become more price-competitive and (2) access technical know-how or natural resources
nonexistent or too expensive at home
4. Discuss economic and non-economic motivations for companies’ international......CONTINUED* [Show Less]