Difference Between International Business and Global Business
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Questions and Answers

What is the primary focus of studies in International Business (IB)?

  • Base of the pyramid economies
  • Emerging economies and their business activities
  • Entry into foreign markets (correct)
  • Competition within developed economies

    • How is 'Global Business' distinguished from International Business (IB) regarding the treatment of emerging economies?

  • Global business ignores emerging economies.
  • Global business focuses exclusively on competition within emerging economies.
  • Global business focuses solely on competition within developed economies.
  • Global business looks at business activities within emerging markets, unlike IB. (correct)

    • What does the term 'Base of the Pyramid' refer to in the context of the global economy?

  • Population segments making less than $2,000 a year (correct)
  • Countries with the highest GDP per capita
  • Countries with high levels of foreign direct investment (FDI)
  • Countries with emerging markets

    • How is 'Global Business' defined in relation to international and domestic activities?

    <p>Global business entails a study of both international and domestic activities.</p> Signup and view all the answers

    What is the key difference between International Business (IB) and Global Business regarding market focus?

    <p>IB looks into entry into foreign markets while Global Business includes activities in emerging markets.</p> Signup and view all the answers

    'Foreign direct investment (FDI)' involves:

    <p>Control and management of value-added activities in other countries.</p> Signup and view all the answers

    'Emerging economies' are best described as countries that:

    <p>Are starting to emerge as new players in the world economy.</p> Signup and view all the answers

    'Global Business' differs from International Business (IB) by:

    <p>'Global Business' looking at business activities within emerging markets.</p> Signup and view all the answers

    Global business includes a deliberate blurring of boundaries between international and domestic business.

    <p>True</p> Signup and view all the answers

    The majority of humanity, approximately two billion people, earn less than $2,000 a year according to the text.

    <p>False</p> Signup and view all the answers

    Foreign direct investment (FDI) refers to indirect investments in value-added activities in other countries.

    <p>False</p> Signup and view all the answers

    The term 'Global Business' primarily focuses on competition within developed economies.

    <p>False</p> Signup and view all the answers

    Emerging economies are countries that are considered established players in the world economy.

    <p>False</p> Signup and view all the answers

    International Business (IB) is only concerned with cross-border economic activities.

    <p>False</p> Signup and view all the answers

    Global business treats emerging markets as an essential part of its study.

    <p>True</p> Signup and view all the answers

    'Base of the Pyramid' in the context of the global economy refers to the wealthiest individuals globally.

    <p>False</p> Signup and view all the answers

    'Global Business' encompasses both international activities covered by traditional IB books and domestic business activities.

    <p>True</p> Signup and view all the answers

    'Global Business' and 'International Business' have identical definitions when it comes to engaging in economic activities abroad.

    <p>False</p> Signup and view all the answers

    Study Notes

    International Business (IB) vs Global Business

    • The primary focus of International Business (IB) is on cross-border economic activities.
    • Global Business, on the other hand, includes both international and domestic activities, blurring the boundaries between the two.

    Emerging Economies

    • Emerging economies are countries that are not yet established players in the world economy.
    • They are a key focus in Global Business studies, whereas International Business (IB) treats them as peripheral.

    Base of the Pyramid

    • The term 'Base of the Pyramid' refers to the majority of humanity, approximately two billion people, who earn less than $2,000 a year.
    • This segment is a critical part of Global Business studies, highlighting the need for businesses to cater to this demographic.

    Foreign Direct Investment (FDI)

    • Foreign Direct Investment (FDI) involves direct investments in value-added activities in other countries.
    • This is distinct from indirect investments, which are not considered FDI.

    Key Differences

    • The key difference between International Business (IB) and Global Business is their market focus: IB focuses on cross-border activities, while Global Business encompasses both international and domestic activities.
    • Global Business treats emerging markets as an essential part of its study, whereas International Business (IB) does not.

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    Description

    Learn the distinctions between International Business and Global Business, including their definitions, focus areas, and boundaries. Explore the nuances in the scope and operations of businesses operating across borders versus around the globe.

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