Podcast
Questions and Answers
What is international business?
What is international business?
Commercial transaction that crosses the borders of two or more nations.
What are imports?
What are imports?
Goods and services purchased abroad and brought into a country.
What are exports?
What are exports?
Goods and services sold abroad and sent out of a country.
What is a multinational corporation?
What is a multinational corporation?
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What defines a born global firm?
What defines a born global firm?
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What are some benefits of globalization of production?
What are some benefits of globalization of production?
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Which of the following statements about globalization is true?
Which of the following statements about globalization is true?
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What has been a recent challenge of globalization?
What has been a recent challenge of globalization?
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What is the General Agreement on Tariffs and Trade (GATT)?
What is the General Agreement on Tariffs and Trade (GATT)?
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What role does e-commerce play in globalization?
What role does e-commerce play in globalization?
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The value of all goods and services produced by a domestic economy during a one-year period is known as ___.
The value of all goods and services produced by a domestic economy during a one-year period is known as ___.
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The trend towards greater economic, cultural, political, and technological interdependence among national institutions and economies is known as ___.
The trend towards greater economic, cultural, political, and technological interdependence among national institutions and economies is known as ___.
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Globalization has no effect on income inequality between nations.
Globalization has no effect on income inequality between nations.
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Which of the following is not a benefit of globalization of markets?
Which of the following is not a benefit of globalization of markets?
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Study Notes
Learning Objectives
- Identify types of companies in international business: large corporations, emerging market firms, and SMEs.
- Understand globalization's significance for global markets and production.
- Recognize key forces driving globalization.
- Analyze arguments for and against globalization.
- Develop skills for future career relevance.
Apple’s Global Impact
- Supports millions of applications globally.
- Globalization enables Apple to:
- Produce and market products worldwide with minimal modifications.
- Lower production and marketing costs.
- Maintain a coherent global branding strategy.
- Challenges faced include rising nationalism and trade wars.
International Business Overview
- Definition: Commercial transactions crossing borders of multiple nations.
- Imports: Goods/services bought from foreign countries.
- Exports: Goods/services sold to foreign markets.
Key Players in International Business
- Major players include large firms from affluent nations, emerging market companies, and SMEs.
- Multinational Corporations (MNCs): Companies with investments in several countries.
- Foreign Direct Investment (FDI): Purchase of significant assets in another country to exert management control.
- Born Global Firms: Startups with an international focus from the outset, e.g., Airbnb and TikTok.
What is Globalization?
- Characterized by heightened economic, political, cultural, and technological interdependence.
- Distinguished by denationalization unlike internationalization.
- Stages of globalization:
- First Age (mid-1800s to 1920s): High labor mobility, large cargo ships enhanced trade, communications improved.
- Second Age (1989 to present): Technology advancements, regional economic blocs' growth, and the rise of global supply chains.
Globalization of Markets and Production
- Globalization of Markets: Convergence in buyer preferences worldwide.
- Benefits include reduced marketing costs, new market creation, income stream balancing, and global sustainability.
- Globalization of Production: Distribution of production to optimize costs and quality.
- Benefits include access to cost-effective labor, expertise, and necessary inputs.
Drivers of Globalization
- Decreased trade barriers enabled by GATT and WTO.
- Regional Trade Agreements: USMCA, EU, and APEC.
- E-commerce growth fueled by digital connectivity and consumer engagement.
- Innovations in communication and transportation enhance interaction and logistics.
Globalization Debate: Jobs and Wages
- Arguments against globalization:
- Job losses in developed countries, wage decline, and exploitation of low-wage workers.
- Arguments for globalization:
- Promotes wealth, efficiency, and job market flexibility while improving living standards in developing nations.
Globalization and Income Inequality
- Inequality within nations: Persistent wage gaps between occupations.
- Inequality between nations: Broader income disparities amongst rich and poor countries.
Cultural Implications of Globalization
- For globalization: Facilitates economic benefits from diverse skills and perspectives.
- Against globalization: Threatens cultural diversity, leading to homogenization.
National Sovereignty and Globalization
- Concerns about diminished governmental power due to supranational institutions.
- Counterargument: Globalization can enhance democratic processes worldwide.
Environmental Considerations
- For globalization: Corporations often endorse sustainable practices.
- Against globalization: Risk of a "race to the bottom" on environmental regulations.
Skills for the Future Workplace
- Essential skills developed through the course include:
- Application of knowledge and critical thinking.
- Communication abilities.
- Ethical understanding and commitment to social responsibility.
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Description
Test your understanding of globalization and its impact on international business in Chapter 1 of the tenth edition. This quiz covers key concepts such as types of companies involved in global markets and factors driving globalization.
