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daniels12_01.ppt

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IB chapter 1.ppt
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daniels12_01.ppt

  1. 1. International Business Part One Background For International Business Chapter One Globalization and International Business
  2. 2. Chapter Objectives • To define globalization and international business and show how they affect each other • To understand why companies engage in international business and why international business growth has accelerated • To discuss the major criticisms of globalization • To become familiar with different ways in which a company can accomplish its global objectives • To apply social science disciplines to understanding the differences between international and domestic business Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 1-2
  3. 3. Definition of Globalization Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 1-3 The broadening set of interdependent relationships among people from different parts of a world that happens to be divided into nations
  4. 4. Definition of International Business All commercial transactions— including sales, investments, and transportation—that take place between two or more countries Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 1-4
  5. 5. Factors in Increased Globalization • Increase in and expansion of technology • Liberalization of cross-border trade and resource movements • Development of services that support international business • Growing consumer pressures • Increased global competition • Changing political situations • Expanded cross-national cooperation Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 1-5
  6. 6. The Criticisms of Globalization • Threats to national sovereignty • Growth and environmental stress • Growing income inequality Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 1-6
  7. 7. Reasons That Firms Engage in International Business • Expanding sales • Acquiring resources • Minimizing risk Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 1-7
  8. 8. Modes of Operation in International Business • Merchandise exports and imports • Service exports and imports • Tourism and Transportation • Service Performance • Asset Use • Investments Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 1-8
  9. 9. Types of International Organizations • Collaborative arrangements • Strategic Alliance • Multinational Enterprise (MNE) Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 1-9
  10. 10. Views on future of international business and globalization • Further globalization is inevitable. • International business will grow primarily along regional rather than global lines. • Forces working against further globalization and international business will slow down both trends. Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 1-10

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