1. International Business Part One Background For International Business
Chapter One
Globalization and International Business

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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 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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3. Definition of Globalization
The broadening set of interdependent relationships among people from different parts of a world that happens to be divided into nations
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4. Definition of International Business
All commercial transactions—including sales, investments, and transportation—that take place between two or more countries
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall

5. Factors in Increased Globalization
Increase in and expansion of technology
Liberalization of cross-border trade and resource movements
Development of services that support international business
Growing consumer pressures
Increased global competition
Changing political situations
Expanded cross-national cooperation
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6. The Criticisms of Globalization
Threats to national sovereignty
Growth and environmental stress
Growing income inequality
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7. Reasons That Firms Engage in International Business
Expanding sales
Acquiring resources
Minimizing risk
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8. Modes of Operation in International Business
Merchandise exports and imports
Service exports and imports
Tourism and Transportation
Service Performance
Asset Use
Investments
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9. Types of International Organizations
Collaborative arrangements
Strategic Alliance
Multinational Enterprise (MNE)
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10. Views on future of international business and globalization
Further globalization is inevitable.
International business will grow primarily along regional rather than global lines.
Forces working against further globalization and international business will slow down both trends.
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