International Business - --consists of business transactions between parties from more than one country
-can differ from domestic business for a number
... [Show More] of reasons; some being boundaries, currencies, cultures, legal systems, availability of resources, skills & knowledge, etc
-Globalization - --refers to the shift towards a more integrated and interdependent world economy
-effects can be seen everywhere
-Growing or expanding to exist throughout the entire world
-Facets of Globalization - --Globalization of markets- no longer limited to selling products only in our domestic boundaries
-Globalization of production- no longer limited to producing goods in our own country.
-The economies of other countries affect international business
-~Why study international business?~ - --provides knowledge and skills
-helps make better career assessments
-Compete successfully with peers and future competitors
-stay abreast with latest business techniques and tools
-obtain cultural literacy
-Historical Perspective - --International business has been conducted ever since the first national borders were formed
-IB have been a major force in shaping borders and changing world history
-Pax Romana (27 BC-180AD) was an extended period of peace within the Roman Empire
-Common coinage, roads, security, markets, standardized weights and measures
-Two Recent eras of globalization - --First Period (1870-1914)
-British Pound sterling
-colonization
-transportation and communication
-Second Period (1990 onward)
-US dollar
-collapse of USSR (Berlin wall collapse so all countries allowed to trade openly)
-opening up of china and other countries
-technology and transportation
-~Contemporary causes of globalization~ - --Strategic aka motivating factors (core competencies, resources, new markets, rivalry)
-Facilitating Factors aka environmental causes (environmental, political, technology)
-~Strategic Imperatives (motivating factors)~ - --Leveraging a firm's core competencies
-acquiring resources at low cost
-expanding into new markets
-competing with industry rivals
-~Facilitating factors (Environmental causes)~ - --Changes in the political Environment
--Reduction of trade and investment barriers
--the collapse of European communism
--the idealogical and policy changes undertaken by china and india
-Changes in the technological environment
--Advances in transportation
--Improvements in information processing
--changes in communications technology
-International Business Activities - --Exporting & importing (simplest form of IB and usually first form used as well)
-International investments (FDI and FPI)
-International Licensing (intellectual property)
-International Franchising (franchisor and franchisee)
-International management contract (management services)
-~Exporting~ - --selling of products made in one's own country for use or resale in other countries
-trade in goods: tangible products
-trade in services: intangible products
-~Importing~ - --buying of products made in other countries for use or resale in one's own country
-Gross Domestic Product - --total monetary value of goods produced and services provided by a country in a year
-USA prominent market
-trade deficit
-why convert to monetary value? comparisons between nations as well as comparisons within different time periods
-monetary value must have specific time frame
-GDP rankings as of 2014 in PPP terms (purchasing power parity) -( know USA figure and ranking of countries for testing)
--China- 17.63
--European union-17.61
--USA-17.46
--India-7.27
--Japan
-Exports of goods and services as a % [Show Less]