1. Global Dimensions of Business Business 187 Prof. Robert Chapman WOOD 1-1

2. Global Dimensions of Business  Business as it operates globally across vastly different cultures and institutions.

3. Globalization  ‘The shift toward a more integrated and interdependent world economy’  Globalization is significantly changing life for the majority of the world’s people (including us)

4. Why study global business?  More and more business is international Before the recession, US exports were growing 6% a year while the economy overall grew 3%  Northern California depends heavily on international business  At San Jose State, we’re a very international community Look around the room!

5.  International business is different Different cultural experiences Different rules of the game Different mechanisms – procedures for exporting, importing, setting up units in foreign countries Surprising principles for business strategy

6. Definitions  International business – any business or commercial transaction that involves two or more countries  Global business – business activities that treat the world as a single market All global businesses are both ‘international’ and ‘global’

7. Importance of international business  International business is transforming the world It can transform the world for the better  The fastest growing economies are the most populous countries China India Others – Indonesia, Vietnam, coming up fast

8.  Hundreds of millions of people are living better today than 10 years ago  But we’re learning that billions are not being reached Are average people in India living better? Are people in China actually happier?

9. When east Asia started developing, ordinary people gained  Japan  Korea  Taiwan  Singapore  growth in the 1980s in China  It is possible for development to benefit everybody

10. Learn international business to figure out our roles in the world  Think about how we can make better ways of living for everyone

11. What should be globalized?

13. Optional assignment due the last day of class  Write a self-evaluation of your class participation You can attach any  notes you prepared for case discussions  correspondence you had with me  anything else that may help me evaluate how well you participated You can tell me what class participation grade you think you deserve

14.  You will also have a chance to give a presentation on an international business topic A country? Perhaps your country or your ancestors’?

15. The packet is available at Maple Press  481 East San Carlos St.  … in the block east of 10 th St. Just tell them you want the packet for Business 187, Prof. Wood  You must have the packet! Where I could give links to an article on the Web, it isn’t included in the packet

16. Recommended supplementary reading  The New York Time  Fortune  Wall St. Journal  The Financial Times (of London)  Bloomberg.com  theatlantic.com

17. Buy a college-level dictionary  It’s essential for your career  You’re too advanced now for a “learner’s dictionary”

19. Scary times  Both bad and good things are happening Good: growth, new opportunities, people emerging from poverty Bad: pollution, layoffs, lying executives, war Really Bad: Huge recession  This semester is designed to provide tools that help you create more of the good and get rid of some of the bad

22. What is ‘International Business?’  All commercial transactions between two (or more) countries ‘Commercial transactions’ = the buying and selling of goods and services Private (between companies) Public (involving a government)

23. Why Engage in International Business  Expand sales Volkswagen (Germany) Ericsson (Sweden) IBM (United States)  Acquire resources Better or cheaper components, services, products Foreign capital Technologies Information  Minimize risk (doesn’t always work) Take advantage of the business cycle for products/services Diversify among international markets

24. Why International Business is Growing  Liberal government policies on trade  Rapid improvement of technology Transportation is quicker while costs are lower Communication enables control from afar  New institutions to support trade Examples: Global banking Federal Express  Consumer demand  Companies learning from each other