18 Questions
What is the primary focus of studies in International Business (IB)?
Entry into foreign markets
How is 'Global Business' distinguished from International Business (IB) regarding the treatment of emerging economies?
Global business looks at business activities within emerging markets, unlike IB.
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
How is 'Global Business' defined in relation to international and domestic activities?
Global business entails a study of both international and domestic activities.
What is the key difference between International Business (IB) and Global Business regarding market focus?
IB looks into entry into foreign markets while Global Business includes activities in emerging markets.
'Foreign direct investment (FDI)' involves:
Control and management of value-added activities in other countries.
'Emerging economies' are best described as countries that:
Are starting to emerge as new players in the world economy.
'Global Business' differs from International Business (IB) by:
'Global Business' looking at business activities within emerging markets.
Global business includes a deliberate blurring of boundaries between international and domestic business.
True
The majority of humanity, approximately two billion people, earn less than $2,000 a year according to the text.
False
Foreign direct investment (FDI) refers to indirect investments in value-added activities in other countries.
False
The term 'Global Business' primarily focuses on competition within developed economies.
False
Emerging economies are countries that are considered established players in the world economy.
False
International Business (IB) is only concerned with cross-border economic activities.
False
Global business treats emerging markets as an essential part of its study.
True
'Base of the Pyramid' in the context of the global economy refers to the wealthiest individuals globally.
False
'Global Business' encompasses both international activities covered by traditional IB books and domestic business activities.
True
'Global Business' and 'International Business' have identical definitions when it comes to engaging in economic activities abroad.
False
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.
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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