The document defines globalization as the broadening set of interdependent relationships among people from different parts of the world, and international business as all commercial transactions that take place between two or more countries. It discusses factors that have increased globalization like technology and trade liberalization. It also outlines criticisms of globalization like threats to sovereignty and growing inequality. The document then explains reasons why firms engage in international business, like expanding sales and acquiring resources. It lists different modes of operation in international business and types of international organizations. Finally, it presents views on the future of globalization and international business.

1. International Business
Part One
Background For International
Business
Chapter One
Globalization and International
Business

2. Chapter Objectives
• To define globalization and international business
and show how they affect each other
• To understand why companies engage in
international business and why international
business growth has accelerated
• To discuss the major criticisms of globalization
• To become familiar with different ways in which a
company can accomplish its global objectives
• To apply social science disciplines to understanding
the differences between international and domestic
business
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Inc. publishing as Prentice Hall
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3. Definition of Globalization
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Inc. publishing as Prentice Hall
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The broadening set of
interdependent relationships
among people from different
parts of a world that happens to
be divided into nations

4. Definition of International Business
All commercial transactions—
including sales, investments, and
transportation—that take place
between two or more countries
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Inc. publishing as Prentice Hall
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5. Factors in Increased Globalization
• Increase in and expansion of technology
• Liberalization of cross-border trade and resource
movements
• Development of services that support international
business
• Growing consumer pressures
• Increased global competition
• Changing political situations
• Expanded cross-national cooperation
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Inc. publishing as Prentice Hall
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6. The Criticisms of Globalization
• Threats to national sovereignty
• Growth and environmental stress
• Growing income inequality
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Inc. publishing as Prentice Hall
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7. Reasons That Firms Engage in
International Business
• Expanding sales
• Acquiring resources
• Minimizing risk
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Inc. publishing as Prentice Hall
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8. Modes of Operation in International
Business
• Merchandise exports and imports
• Service exports and imports
• Tourism and Transportation
• Service Performance
• Asset Use
• Investments
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Inc. publishing as Prentice Hall
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9. Types of International Organizations
• Collaborative arrangements
• Strategic Alliance
• Multinational Enterprise (MNE)
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10. Views on future of international business and
globalization
• Further globalization is inevitable.
• International business will grow primarily
along regional rather than global lines.
• Forces working against further globalization
and international business will slow down
both trends.
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Inc. publishing as Prentice Hall
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