Professional Documents
Culture Documents
Do You Know?
What is globalization, and why is it important, even to domestic firms? In what ways is globalization perceived as a benefit and as a threat? Can you differentiate between international business, international traction, international trade, and international investment? Can you distinguish between the multinational enterprise (MNE) and the international firm?
Chapter 1: International Business in an Age of Globalization
Do You Know?
What differences do you observe between international business and domestic business? Why do firms expand globally?
What gains can they achieve and what hazards will they confront? Does every firm seek identical goals or face the same threats in this process?
An Age of Globalization
Value of world exports in 2000 tripled between 1980 and 2000. Foreign investment grow more than twenty-fold. Firms without international goals may find their domestic markets under threat from foreign competition.
International trade
Occurs when companies import or export across borders
International investment
Occurs when a companies invests its resources across national boundaries
International firm
Those engaged in international business
Chapter 1: International Business in an Age of Globalization
Operational Nature
Communication, coordination, motivation, differences in organizational principles and management philosophies