International Business

GLOBALIZATION Globalization: The shift toward a more integrated and interdependent world economy Globalization or Market: The merging of historically distinct and separate national markets into one huge global marketplace  Falling trade barriers make it easier to sell internationally The tastes and preferences of consumers are converging on some global norm Firms help create the global market by offering the same basic products worldwide Globalization of Production: The sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production like land, labor, and capital Lowering their overall cost structure or improving the quality or functionality of their product offering The Emergence of Global Institutions: help manage, regulate, and police the global marketplace + promote the establishment of multinational treaties to govern the global business system

Technological changes on Globalization of production: that enable firms to disperse production to economical, geographically separate locations essing and communication costs that enable firms to create and manage globally dispersed production systems Technological changes on Globalization of markets: nications networks -cost transportation  create global markets networks and global media  creating a worldwide culture, and a global market for consumer products Changes in Demographics of the World Economy:

Multinational Enterprise Multinational enterprise: is any business that has productive activities in two or more countries International business: is any firm that engages in international trade or investment

World Trade Organization: policing the world trading system IMF: maintaining order in the international monetary system The World Bank: promoting economic development United Nations:

 The Globalization Debate

Jobs and Income Labor Policies and the Environment National Sovereignty World’s Poor a global...