International Business Concepts

Flashcards covering key concepts in International Business including definitions, theories, globalization, and its impact.

International Business

Business activities that involve buying, selling, or investing between two or more countries.

Global Trade

The exchange of goods and services between countries.

Export

Selling goods abroad.

Import

Buying goods from other countries.

Foreign Direct Investment (FDI)

When a company from one country invests in or owns a business in another country.

Multinational Corporations (MNCs)

Large companies operating in many countries.

Comparative Advantage

Countries should produce goods they can make more efficiently and trade for the rest.

Factor Proportions Theory

A theory explaining that countries export goods that use their abundant resources.

International Product Life Cycle

A theory explaining how products move across countries as they grow older.

Globalization

Countries and people becoming more connected through trade, technology, and communication.

Opportunities of Globalization

Includes more jobs, access to international markets, cheaper and better products, and cultural exchange.

Challenges of Globalization

Includes strong foreign competition, job losses in local industries, cultural influence, and environmental problems.

Global Economic Integration

When countries cooperate to make trade easier.