Introduction to International Business & Globalization

This set of vocabulary flashcards covers the foundational concepts of globalization, the core activities of international business, global brand strategies, and current digital commerce trends for 2025-2026.

Globalization

The process of the world becoming more interconnected through the shrinkage of distance and borders via the integration of economies, cultures, and populations.

Economic Globalization

A dimension of globalization involving the integration of financial markets and trade through free-trade agreements and multinational corporations producing and selling worldwide.

Political Globalization

A dimension of globalization where countries collaborate through international organizations like the United Nations (UN), NATO, and the World Trade Organization to address global challenges.

Cultural Globalization

The global spread of ideas, values, and cultural products—such as movies, music, and cuisine—creating interconnected cultural experiences.

International Business

All commercial transactions—including sales, services, or investments—that take place between two or more countries.

Importing

The activity of buying goods from another country.

Exporting

The activity of selling goods to another country.

Licensing

A low-risk strategy where a company grants a foreign entity permission to use intellectual property, such as patents, trademarks, or technology, for a fee.

Franchising

A standardized business model strategy where a foreign entity is allowed to use an entire business model, including the brand name and operations.

Foreign Direct Investment (FDI)

The highest level of market commitment involving the direct investment in facilities in a foreign country, such as building factories or acquiring local companies.

Global Supply Chain

The practice of sourcing materials and manufacturing products wherever it is most cost-effective to optimize efficiency, such as the Apple iPhone assembly process.

Standardization Strategy

A global strategy where a brand maintains a consistent premium image, product design, and message across all borders with only minor local adaptations.

Glocal Approach

A strategy used by companies like McDonald's that combines global standardization of core identity and quality with local adaptation of menus to regional tastes.

Country-of-Origin (COO) Effect

A mental shortcut where the 'Made In…' label influences a consumer's perception of product quality based on country stereotypes.

Deglobalization Pressures

Countervailing forces such as geopolitical tensions, trade wars, protectionism, and a shift toward regional focus like near-shoring or reshoring.

M-commerce

Mobile commerce, which is projected to account for nearly $60\%$ of all online retail sales by the year $2026$.

Social Commerce

E-commerce driven by social media platforms like TikTok Shop, with projected sales reaching $\$1.17\,\text{Trillion}$ by $2026$.

Global Cross-Border E-commerce Market (2025)

A market projected to reach a value of $\$1.47\,\text{Trillion}$ by $2025$ despite deglobalization pressures.

Digital Wallets

A payment method projected to comprise over $50\%+$ of global online transactions by the year $2025$.