MANG 4446 Chapter 1

Global Trends Impacting International Business

• The growth of emerging markets with more consumers

•  The need for increased productivity and consumption in developed countries to insure continued growth

• The increase in globalization and global business, technically and humanly, aided by faster, more reliable communication, with the U. S. still a global leader, but slowing in growth as other emerging economies continue to grow

• The growing gap between supply and demand of natural resources; the increasing demand for “green” management

• The need for governments to develop policies for economic growth and stability; The aging of developed countries’ populations and the youth of developing countries’ population

a modern term used to describe the changes in societies and the world economy that result from dramatically increased international trade, foreign direct investment and cultural exchange: a great set of opportunities to develop new markets

• globalization

• national history

• strategic alliances

is less meaningful in the digital age

• geographic distance

• comparative advantage

• assessments

(see a later slide) prompts interest in globalization, even as localization efforts increase

• geographic distance

• comparative advantage

• globalization

Some assessments regarding globalization include that markets will become more similar, global competition will lead market efforts and multinational corporations (MNCs) will become more powerful as economies are more driven by MNC activities than by governments (Spicer, 2019)

• geographic distance

• comparative advantage

• globalization

Causes of globalization

• The growth of the Multinational Entity (MNE), with the corresponding growth in our technical ability to produce goods and communicate with units in a wide geographic venue.

• The increased access to information among the general public eases movement of goods/services in the marketplace; the better and almost instantaneous information flow; this information access is a marked change from pre-computerized/Internet life (exceptions are for countries whose governments restrict access to the Web)

• modern term used to describe the changes in societies and the world economy that result from dramatically increased international trade, foreign direct investment and cultural exchange

The increased availability of commercial paper

• negotiable instruments

• those that significantly change an existing standard

digital payment systems were disruptive innovations

• those that significantly change an existing standard

• negotiable instruments

allowed easier access to capital for business and nations, as well as additional investment opportunities for investors

• negotiable instruments

• those that significantly change an existing standard

• many key countries

Countries/people feel threatened by the success of others and by possible loss of their identities, causing a backlash against globalism

• true

• false