Introduction to International Business

Study Notes

International Business

Involves transactions across national borders aimed at satisfying individual and organizational needs.
Common activities include export/import and foreign direct investment (FDI).
There has been an increase in both export/import and FDI in recent years.

Globalization

Economic globalization refers to the growing interdependence of economic actors across different countries and regions.
Results in interconnected markets, influencing production, distribution, and consumption on a global scale.

Interdependence and Globalization

Internationalization refers to the increasing involvement of businesses in international markets, while globalization encompasses broader global interactions.
Mapping globalization is complex, as it involves various dimensions like economic, social, and cultural interconnections.

Technology and Innovation

Technology applies scientific knowledge for practical applications, enhancing understanding of the environment.
Invention is conceptualized as new or improved devices or processes; innovation occurs when these inventions are commercialized.
Multiple inventions can contribute to a single innovation, demonstrating the collaborative nature of technological advancement.
Affordable technology facilitates rapid global communication and improves production capabilities for organizations, allowing efficient international operations.

Economic Interdependence

Driven by political events and the stability of policies in different nations.
Political stability and a favorable environment are essential for the prosperity of firms in a globalized marketplace.

International Business

Involves transactions across national borders to meet the needs of individuals and organizations.
Common activities include exporting/importing goods and foreign direct investment (FDI).
Both export/import activities and FDI have seen significant growth in recent years.

Globalization

Refers to the increasing interdependence between locations and economic entities across different countries and regions.
Economic globalization enhances interaction between national economies, promoting trade and investment.

Mapping Globalization

Distinguishing between internationalization and globalization can be complex due to the nuanced levels of interdependence.

Technology and Its Impact

Technology encompasses the application of scientific knowledge for practical purposes, enhancing our understanding of the environment.
Invention signifies an idea or model for new/improved products or processes.
Innovation occurs when these new products or processes are commercialized, often requiring multiple inventions.
Advances in technology facilitate rapid global communication and enhance production efficiency, allowing firms to compete in international markets.

Economic Interdependence

Driven by political factors, particularly the importance of political stability.
Stable policies create a conducive environment for businesses to thrive and encourage foreign investment.

Description

This quiz explores the fundamentals of international business, focusing on transactions that occur across national borders. It highlights key activities like export/import and foreign direct investment (FDI), along with the impact of globalization on economic interdependence. Test your knowledge on how these concepts shape the global economy.