Professional Documents
Culture Documents
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Chapter Objectives
To define globalization and international business and show how they affect each other To understand why companies engage in international business and why international business growth has accelerated To discuss globalizations future and the major criticisms of globalization To become familiar with different ways in which a company can accomplish its global objectives To apply social science disciplines to understanding the differences between international and domestic business
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Introduction
Globalization is the ongoing process that deepens and broadens the relationships and interdependence among countries. International Business is a mechanism to bring about globalization.
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International Business
International business consists of all commercial transactionsincluding sales, investments, and transportationthat take place between two or more countries Increasingly foreign countries are a source of both production and sales for domestic companies
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Measuring Globalization
A.T. Kearney/Foreign Policy Globalization Index Economic Technological Personal Contact Political
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Threats to national sovereignty Economic growth and environmental stress Growing income inequality and personal stress Offshoring the transferring of production abroad is controversial in terms of who benefits when costs are reduced and whether the process exchanges good jobs for bad ones.
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Investments
Foreign Direct Investment (FDI) Portfolio Investment
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Multinational Enterprises Multinational Enterprises (MNEs) take a global approach to markets and production. Sometimes they are referred to as multinational corporations or companies (MNCs) or transnational companies (TNCs).
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