Chapter 1: The Rapid Change of International Business

advertisement
The Rapid Change of
International Business
Chapter 1
Terms to Know

International Business
Foreign Business
Multidomestic company
Global company
Transnational company?

International company




History of International Trade





BC
1500’s and 1600’s
Late 1800’s
Early 1900’s
Present Day
What is Globalization?

“The international integration of goods,
technology, labor, and capital.”
Forces for Globalization

Political




Technological




Information
Markets
Market


Trading agreements
Decreasing barriers
Privatization
“Pull” companies over with you
Cost
Competitive


Increasing
Counter maneuver
Explosive Growth

Foreign Direct Investment






US= 10%
Total assets in 2002: $26.5 trill. (grew 8.3%)
53.1 million jobs
Exporting
Importing
International Companies


63,800 companies in 2002, 866,000 affiliates
25% of global output, 2/3 of trade
The Debate over Globalization

For:



Raises standard of living
Creates jobs
Against:



Uneven results across nations
Deleterious effects in labor and labor
standards
Decline in environment and health standards
International Environment

Environment

Three environments
Domestic
 Foreign
 International


Two classifications
Uncontrollable
 Controllable

Uncontrollable Factors











Competitive
Distributive
Economic
Socioeconomic
Financial
Legal
Physical
Political
Sociocultural
Labor
Technological
Controllable Factors

Factors of Production




Capital
Raw materials
People
Activities of the Organization




Personnel
Finance
Production
Marketing
Three Environments

Domestic



Foreign




Most familiar
Affect overseas operations
Different face values
Changes difficult to assess
Forces interrelated
International


More complex
Self-reference criteria
Download
Related flashcards
Credit

13 Cards

Finance

16 Cards

Banks of Germany

43 Cards

Create flashcards