Chapter 1 - Globalization Today

International Business

commercial transaction that crosses the borders of two or more nations

Imports

goods and services that are purchased abroad and brought into a country

Exports

Goods and services sold abroad and sent out of a country

Mult inational Corporation

Business that has direct investments abroad in multiple countries

Foreign Direct Investment

Purchase of physical assets or a significant amount of the ownership (stock) of a company in another country to gain a measure of management control

Born Global Firm

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

Globalization

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

Gross Domestic Product (GDP)

the value of all goods and services produced by an economy during a specific period of time such as a year

Gross National Product (GNP)

value of all goods and services produced by a country's domestic and international activities over a one-year period

GDP or GNP per capita

Nation's GDP or GNP divided by its population

Globalization of Markets

Convergence in buyer preferences in markets around the world

Sustainability

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Globalization of Production

Dispersal of activities that helps a company achieve its cost-minimization or quality-maximization objectives.

General Agreement on Tariffs and Trade (GATT)

treaty designed to promote free trade by reducing both tariffs and non tariff barriers to international trade

World Trade Organization (WTO)

International organization enforces the rules of international trade

Regional trade agreement

Key advantage is negotiating with fewer nations can be easier.

World Bank

Agency created to provide financing for national economic development efforts

International Monetary Fund (IMF)

agency created to regulate fixed exchange rates and to enforce the rules of the international monetary system

e-commerce

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

internet of things

All devices and equipment that are readable, recognizable, locatable, addressable, and/or controllable via the internet

Digitization

The process of changing information from analog to digital form for use by computers and other information technologies

Digitalization

Use of digtial data and technology to develop new business operations, strategies, or business models

Digital Transformation

Fundamental change in which digital technologies penetrate all areas of operations, strategy, and culture to produce customer-focused competitive advantage

RFID tags and GPS satellites used to increase efficiency and dependability

What are two examples of new transportantion technologies and how do they improve processes?

manufacturing jobs

Outsourcing might reduce these in developed nations

standard of living

Trade might increase this in developing nations

Income Inequality

Trade might reduce this in developing nations

Extreme poverty

living on less than $1.90 a day

Large US Multinationals

Sometimes blamed ( right or wrong ) for cultural homeogenization

National Sovereignty

Globalization might undermine policies of democratically elected leaders

Reasonable Environmental Laws

Most international firms today support these

Ability to learn a concept and apply that knowledge in another setting to achieve a higher level of understanding

Application of knowledge

Reflective (critical) thinking

purposeful and goal- directed thinking used to solve problems, make decisions

Global Business Environment

Model that reveals the complexities of international business and the interrelations between its main elements

technological innovation and falling barriers to trade and investment

The two broad forces driving globalization are

Opponents of globalization say that it

eliminates manufacturing jobs and lowers wages in advanced nations and exploits workers in lower-wage nations.

Globalization increases wealth and efficiency in advanced and developing nations.

What is the position taken by globalization supporters?

increased

Between 1980 and 2018, income inequality within both North America and Asia...

high levels of human interaction.

Jobs seeing the greatest acceleration in automation during the pandemic were those with...

Globalization is characterized by denationalization, which refers to...

national boundaries becoming less relevant

60 percent

Today, the portion of world output that is traded among nations is approximately

Accesses technical experise or production inputs

Which of the following is a benefit of the globalization of production inputs?

cultural, political, economic, and legal characteristics

The portion of the global business model ccovering national business environments includes...