Two of the most common types of international business activity are export/import

foreign direct investment (FDI). In recent years both have been on the decline

The growing interdependence of locations and economic actors across countries and regions.

definition of

increasing interdependence of location

cross-border Migration

blending of culture

more homogeneous Consumption patterns

Global value chains connect local clusters

standardization of various kinds

Corporation in supranational Institution

increasing interdependence of firms

more joint ventures alliances and M&A

growing cross-border competition for markets, resource, And,expertise

shared agenda set by governance Institution

Improved technology are:

implies the application of scientific knowledge for practical aims which involves applying scientific concepts that help us understand our environment.

•implies the application of scientific knowledge for practical aims which involves applying scientific concepts that help us understand our environment.

definition of

is an idea, sketch, or model of any new or improved device, product, process, or system

occurs when the new product, device, or process is involved in a commercial transaction. Multiple inventions may be involved in achieving an innovation.

definition of

Economic interdependence is partly driven by political events, and less importantly by political stability

Stability of policies, and the creation and maintenance of the appropriate environment, plays a significant role in promoting the appropriate environment for firms to prosper.

Sets of common habits, routines, established practices, rules, or laws that regulate the interaction between individuals and groups

Rules that can be of the form of legal codes and laws. Can exist within a firm such as responsibilities, job descriptions, codes of conduct, and accounting and financial regulations. (E.g. GATT, WTO)

Are not always laid out in the form of written instruction, but come out of usage and tradition and are often unwritten and tacit.

•Established in 1947 to liberalize trade and to negotiate trade concessions among member countries. Today, the WTO is enforcing the provisions of the GATT.

definition of :GATT

•Established on January 1, 1995.

  An international organization that deals with the rules of trade among member countries. Enforces the provisions of the General Agreement on Tariffs and Trade (GATT). Acts as a dispute-settlement mechanism.

Common misconceptions about MNEs

the true conceptions about MNEs

Are:

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Most MNE activity can be classified into two major categories

(1)  Trade (exports and imports): Approximately more than 50 percent of all trade is made by the world’s largest 500 MNEs.

  Foreign direct investment (FDI): Approximately 80 percent of all FDI is made by the world’s largest 500 MNEs.

Foreign direct investment (FDI) is equity funds invested in home country

are money coming into a country during the reporting year, from foreign-owned MNEs to their subsidiaries in country A.

In this case, country A is known as the host country.

are money going out, from firms that are registered in country A (known as the home country) to their subsidiaries in other countries.

what is the triad?

The international business environment has changed rapidly in recent years as a result of

International business in the modern era:

the SMEs did not appear

The definition of SMEs varies according to the nation. SMEs are firms with fewer than 250 employees in Europe, but fewer than 500 in the United States.

MNEs often purchase from SMEs. This is because their specialized workforces, innovation and technology allow SMEs to provide goods and services more efficiently than if the MNE were to source these internally.

the European Union :States has the largest economy in the world with a GDP of over $17.96 trillion (2015 estimate).

•The collective GDP of the EU is greater than that of the United States and Japan.

The EU27 is the world’s largest importer and exporter.

•Japan is the largest economy in Asia.

Japan is the 4th largest importer and 4th largest exporter in the world.