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ShaliniDevi
GLOBALIZATION
Increase trade across national boundaries One company having subsidiary companies and plant in
many countries
It is much more than just importing or exporting from one country to another country
KEY TERMS
A global business a business that takes a global approach to production and sourcing (Coca-Cola, Intel)
Technological change
Countries are different International transactions involve converting money into different currencies
International business must cope with different, conflicting government rules and systems
The World Trade Organization (WTO) which is responsible for policing the
world trading system and ensuring that nations adhere to the rules established in WTO treaties
In 2008, 151 nations accounting for 97% of world trade were members
of the WTO
The World Bank which promotes economic development The United Nations (UN) which maintains international peace and security, develops friendly relations among nations,
Aircraft
For many consumer end-products, huge differences still exist among national markets Food, clothing, entertainment
Ikea
McDonalds Samsung
Much of this course is concerned with managing an international Business i.e., any business with international
sales, sourcing, or
Investment.
Currency Controls
Restrictions on the convertibility of a nations currency Limit the amount of globally accepted currency available to pay for imports
International trade relations examines the political, legal and institutional aspect of todays global trading system.
consumer.
Faster and wider spread of new technologies across the world. More competitors price to the competitors. To attracting investors.
MERITS
Availability of greater variety of goods and services to the
consumer.
Faster and wider spread of new technologies across the world. More competitors price to the competitors. To attracting investors.
DEMERITS
Destroys manufacturing jobs in wealthy nations Wage rates of unskilled in advanced countries decline Companies move to countries with fewer labor and environment regulations Loss of sovereignty Homogenized cultures
DEMERITS