Chapter 01- INTB 300

International Business

Commercial transactions that cross the borders of two or more nations.

Globalization

The trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies.

Imports

Goods and services purchased abroad and brought into a country.

Exports

Goods and services sold abroad and sent out of a country.

Geopolitical Tension

The political and economic tension between nations, which creates challenges and opportunities for international business.

Multinational Corporation (MNC)

A business that has direct investments abroad in multiple countries.

Foreign Direct Investment (FDI)

The purchase of physical assets or significant ownership in another country to gain management control.

Born Global Firm

A company with a global perspective that engages in international business from inception and quickly achieves a competitive advantage.

Gross Domestic Product (GDP)

The value of all goods and services produced by a domestic economy during a one-year period.

Gross National Product (GNP)

The value of all goods and services produced by a country’s domestic and international activities during a one-year period.

First Age of Globalization

Period from mid-1800s to the 1920s characterized by high labor mobility and relatively free trade.

Second Age of Globalization

Period from 1989 to present defined by technological advances and the emergence of global supply chains.

Globalization of Markets

The convergence in buyer preferences in markets around the world.

Globalization of Production

The dispersal of production activities worldwide to minimize costs or maximize quality.

General Agreement on Tariffs and Trade (GATT)

A treaty designed to promote free trade by reducing tariffs and nontariff barriers to international trade.

World Trade Organization (WTO)

The international organization that enforces the rules of international trade.

E-commerce

The use of computer networks to purchase, sell, or exchange products; to service customers; and to collaborate with partners.

Digital Transformation

Fundamental change where digital technologies penetrate all areas of operations, strategy, and culture.

Communication in Globalization

The incorporation of videoconferencing and innovative communication technologies.

Globalization Debate: Jobs and Wages

Discussion on how globalization can both harm and improve employment opportunities and wages.

Income Inequality

The disparity in income levels within and between nations, including wage gaps.

Cultural Impact of Globalization

The effect of global practices on cultural diversity and richness.

National Sovereignty

The concept of national governance potentially being affected by supranational institutions.

Environmental Concerns in Globalization

Debate over whether globalization supports or undermines environmental regulations.