© 2010 Cengage Learning. All rights reserved. CHAPTER 1 GLOBAL  PENG.

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© 2010 Cengage Learning. All rights reserved. CHAPTER 1 GLOBAL  PENG

© 2010 Cengage Learning. All rights reserved. CHAPTER 1 LEARNING OBJECTIVES After studying this chapter, you should be able to: 1.Explain the concepts of international business and global business 2.Give two reasons why it is important to study global business 3.Articulate the fundamental question that study of global business seeks to answer and two perspectives from which to answer it 4.Identify three ways of understanding what globalization is 5.State the size of the global economy and its broad trends

© 2010 Cengage Learning. All rights reserved. LO1: INTERNATIONAL BUSINESS AND GLOBAL BUSINESS International business - business (firm) that engages in international (cross-border) economic activities or the action of doing business abroad Global business - business around the globe, including both international (cross-border) activities and domestic business activities.

© 2010 Cengage Learning. All rights reserved. LO1: THE CONTRIBUTION OF EMERGING ECONOMIES

© 2010 Cengage Learning. All rights reserved. Emerging Economies in the Global Market

© 2010 Cengage Learning. All rights reserved. LO2: WHY STUDY GLOBAL BUSINESS? Career Advancement: Expertise in global business is often a prerequisite to join the top ranks of firms. Globalization: This is an age of extensive global interaction and competition.

© 2010 Cengage Learning. All rights reserved. LO3: THE FUNDAMENTAL QUESTION

© 2010 Cengage Learning. All rights reserved. LO4: THREE VIEWS ON GLOBALIZATION A long-run historical evolution since the dawn of human history A long-run historical evolution since the dawn of human history A new force sweeping through the world in recent times A new force sweeping through the world in recent times A pendulum that swings from one extreme to another from time to time A pendulum that swings from one extreme to another from time to time

© 2010 Cengage Learning. All rights reserved. LO4: SEMIGLOBALIZATION Suggests that barriers to market integration at borders are high but not high enough to completely insulate countries from each other Total Isolationism Total Globalization Semiglobalization

© 2010 Cengage Learning. All rights reserved. LO5: THE GLOBAL ECONOMY Changes in the global Fortune 500

© 2010 Cengage Learning. All rights reserved. LO5: THE GLOBALIZATION DEBATE AND YOU