International Business and Globalization 1

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What is International Business?

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The exchange of goods and services among individuals and businesses in multiple countries.

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What does International Business encompass?

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All commercial activities that promote the transfer of goods, services, resources, people, ideas, and technologies across national boundaries.

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What is globalization?

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The shift toward a more integrated and interdependent world economy.

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What are the two facets of globalization?

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The globalization of markets and the globalization of production.

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What does the globalization of markets refer to?

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The merging of historically distinct and separate national markets into one huge global marketplace.

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What is an example of a product that illustrates the globalization of markets?

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Coca-Cola soft drinks.

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What is the globalization of production?

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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.

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What is a significant example of globalization of production?

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Boeing's 777, where 30% of the value is built by foreign companies.

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What are some positive effects of globalization?

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Increased freedom, wider variety of goods and services, lower costs for businesses, economic growth for developing countries, better access to medicine and technology.

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What are some negative effects of globalization?

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Job losses due to foreign competition, environmental damage, increased terrorism, loss of cultural diversity, and unequal benefits for industrialized vs. low-income countries.