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International Business
Part One
Background For International
Business
Chapter One
Globalization and International
Business
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
Copyright © 2009 Pearson Education,
Inc. publishing as Prentice Hall
1-2
Definition of Globalization
Copyright © 2009 Pearson Education,
Inc. publishing as Prentice Hall
1-3
The broadening set of
interdependent relationships
among people from different
parts of a world that happens to
be divided into nations
Definition of International Business
All commercial transactions—
including sales, investments, and
transportation—that take place
between two or more countries
Copyright © 2009 Pearson Education,
Inc. publishing as Prentice Hall
1-4
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
Copyright © 2009 Pearson Education,
Inc. publishing as Prentice Hall
1-5
The Criticisms of Globalization
• Threats to national sovereignty
• Growth and environmental stress
• Growing income inequality
Copyright © 2009 Pearson Education,
Inc. publishing as Prentice Hall
1-6
Reasons That Firms Engage in
International Business
• Expanding sales
• Acquiring resources
• Minimizing risk
Copyright © 2009 Pearson Education,
Inc. publishing as Prentice Hall
1-7
Modes of Operation in International
Business
• Merchandise exports and imports
• Service exports and imports
• Tourism and Transportation
• Service Performance
• Asset Use
• Investments
Copyright © 2009 Pearson Education,
Inc. publishing as Prentice Hall
1-8
Types of International Organizations
• Collaborative arrangements
• Strategic Alliance
• Multinational Enterprise (MNE)
Copyright © 2009 Pearson Education,
Inc. publishing as Prentice Hall
1-9
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.
Copyright © 2009 Pearson Education,
Inc. publishing as Prentice Hall
1-10

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daniels12_01.ppt

  • 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 Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 1-2
  • 3. Definition of Globalization Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 1-3 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 Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 1-4
  • 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 Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 1-5
  • 6. The Criticisms of Globalization • Threats to national sovereignty • Growth and environmental stress • Growing income inequality Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 1-6
  • 7. Reasons That Firms Engage in International Business • Expanding sales • Acquiring resources • Minimizing risk Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 1-7
  • 8. Modes of Operation in International Business • Merchandise exports and imports • Service exports and imports • Tourism and Transportation • Service Performance • Asset Use • Investments Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 1-8
  • 9. Types of International Organizations • Collaborative arrangements • Strategic Alliance • Multinational Enterprise (MNE) Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 1-9
  • 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. Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 1-10