Global Dimensions of
Business
Business 187
Prof. Robert Chapman WOOD
1-1
Global Dimensions of Business
 Business as it operates globally
 across vastly different cultures and
institutions.
Globalization
 ‘The shift toward a more integrated
and interdependent world
economy’
 Globalization is significantly changing
life for the majority of the world’s
people (including us)
Why study global business?
 More and more business is
international
 Before the recession, US exports were
growing 6% a year while the economy
overall grew 3%
 Northern California depends heavily
on international business
 At San Jose State, we’re a very
international community
 Look around the room!
 International business is different
 Different cultural experiences
 Different rules of the game
 Different mechanisms – procedures for
exporting, importing, setting up units
in foreign countries
 Surprising principles for business
strategy
Definitions
 International business – any
business or commercial transaction
that involves two or more countries
 Global business – business activities
that treat the world as a
single market
 All global businesses are both
‘international’ and ‘global’
Importance of
international business
 International business is transforming
the world
 It can transform the world for the better
 The fastest growing economies are
the most populous countries
 China
 India
 Others – Indonesia, Vietnam, coming up
fast
 Hundreds of millions of people are
living better today than 10 years ago
 But we’re learning that billions are
not being reached
 Are average people in India
living better?
 Are people in China actually happier?
When east Asia started developing,
ordinary people gained
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Japan
Korea
Taiwan
Singapore
growth in the 1980s in China
 It is possible for development to
benefit everybody
Learn international business to
figure out our roles in the world
 Think about how we can make
better ways of living for everyone
What should be globalized?
Optional assignment
due the last day of class
 Write a self-evaluation of your
class participation
 You can attach any
 notes you prepared for case discussions
 correspondence you had with me
 anything else that may help me evaluate
how well you participated
 You can tell me what class participation
grade you think you deserve
 You will also have a chance to give a
presentation on an international
business topic
 A country?
 Perhaps your country or your
ancestors’?
The packet is available at
Maple Press
 481 East San Carlos St.
 … in the block east of 10th St.
 Just tell them you want the packet for
Business 187, Prof. Wood
 You must have the packet!
 Where I could give links to an article on
the Web, it isn’t included in the packet
Recommended supplementary
reading
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The New York Time
Fortune
Wall St. Journal
The Financial Times
(of London)
 Bloomberg.com
 theatlantic.com
Buy a college-level
dictionary
 It’s essential for your career
 You’re too advanced now for a
“learner’s dictionary”
Scary times
 Both bad and good things are
happening
 Good: growth, new opportunities,
people emerging from poverty
 Bad: pollution, layoffs, lying executives,
war
 Really Bad: Huge recession
 This semester is designed to provide
tools that help you create more of the
good and get rid of some of the bad
What is ‘International Business?’
 All commercial transactions
between two (or more) countries
 ‘Commercial transactions’ = the buying
and selling of goods and services
 Private (between companies)
 Public (involving a government)
Why Engage in International
Business

Expand sales

Acquire resources

Minimize risk (doesn’t always work)
 Volkswagen (Germany)
 Ericsson (Sweden)
 IBM (United States)
 Better or cheaper components,
services, products
 Foreign capital
 Technologies
 Information
 Take advantage of the business cycle for
products/services
 Diversify among international markets
Why International Business is
Growing
 Liberal government policies on trade
 Rapid improvement of technology
 Transportation is quicker while costs are lower
 Communication enables control from afar
 New institutions to support trade
Examples:
 Global banking
Federal Express
 Consumer demand
 Companies learning from each other