IBT

1.    Globalization of Markets

2.    International Trade

3.    International Investments

4.    International Business Risks

5.    Participants in International Business (IB)

6.    Foreign Market Entry Strategies

(6) DIMENSIONS or ELEMENTS of International Business (IB)

1.    Integration and interdependence of national economies.

2.    Rise of regional economic integration blocs.

3.    Growth of global investment and financial flows.

4.    Convergence of buyer lifestyle and preferences.

5.    Globalization of product and production activities.

6.    Globalization of services.

 

DIMENSIONS of Market Globalization:

1.    DRIVERS or causes of Globalization

2.    DIMENSIONS or manifestation of Globalization

3.    FIRM-LEVEL CONSEQUENCES of Globalization

4.    SOCIETAL CONSEQUENCES of Globalization

ORGANIZING FRAMEWORK for Examining Market Globalization.

1.    Worldwide reduction of barriers to trade & investment .

2.    Market liberalization and adoption of free markets.

3.    Industrialization, economic development, and modernization.

4.    Integration of world financial markets.

5.    Advances in technology.

DRIVERS of Market Globalization:

GDP (Gross Domestic Product)

Is the total value of goods and services produced by a country in a given/specific year/period; within an annual period/year.

GDP (Gross Domestic Product)

To determine whether the country is developing by comparing the current and past year.

GNP (Gross National Product)

The total value of goods and services produced by a country in the given period; say one-year plus income earned abroad.

Economic Development

results in increase income and living standards, and important measurements of which is Gross National Income (GNI) per person.

Information Technology (IT)

Is the science or process of creating and using information resources.

Communications

Internet and internet-dependent systems such as intranets, extranets, social media, and email connect billions of people and companies.

Internet

Promotes the widest range of products and services to customers worldwide

Internet

Social media such as Facebook and Instagram facilitate the free flow of information, deepening the pace and impact of globalization.

Intranet

Is a computer network for sharing information, easier communication, collaboration tools, operations systems, and other computing service within an organization, usually to execute of access by outsiders.

Extranet

Is a private network similar to intranet but typically open to external parties, such as business partners, suppliers, key customers, etc. The main purpose of an extranet is to allow users to exchange data, and applications, and share information.

Manufacturing

Computer-aided design (CAD) of products, robotics, and production lines have transformed manufacturing, mainly by reducing production costs

Transportation

Firms consider the cost of transporting raw materials, components, and finished products when deciding either to export or manufacture abroad.

Growth of Global Investment and financial flows

firms and governments, in in the process conducting international transactions, buy and sell large volumes of national currencies (dollars, euros and yen).

Convergence of consumer Lifestyles and Preferences

consumers around the world increasingly spend their money and time in similar ways.

Globalization of production

Intense global competition is forcing firms to reduce their costs of production, through economies of scale, standardization of production, through finished products and shifting manufacturing and procurement to foreign locations with less expensive labor.

Globalization of services

Services sector-banking, hospitality, retailing, and other service industries

1.    Countless new business opportunities for internationalizing firms.

2.    New risks and intense rivalry from foreign competitors.

3.    More demanding buyers who source from suppliers worldwide.

4.    Greater emphasis on proactive internationalization.

5.    Internationalization of firms value chain.

 

FIRM LEVEL OF CONSEQUENCES OF MARKET GLOBALIZATION

INTERNATIONALIZATION

It is a strategic process by which a company expands its operations, products and services beyond its home country into foreign markets (global reach).