Forces of globalisation Flashcards
What is international business?
Business activities that involve the transfer of resources, goods, services, skills and information
What is globalization?
The shift towards a more integrated and interdependent world economy
What is the globalization of markets?
Merging of historically distinct and separate national markets into 1 huge global marketplace
What is the globalization of production?
Sourcing of g/s from locations around the globe to take advantage of national differences in the cost and quality in fops
What are the globalization drivers?
Market factors, cost factors, environmental factors, competitive factors
Why are market factors important for MNCs?
Channels of distribution are becoming more global, tech is making world markets more accessible
Why are cost factors important for MNCs?
Avoid cost inefficiencies, avoid duplication of effort
Why are environmental factors important for MNCs?
Gov barriers have fallen, accelerated flow of information across borders, removal of barriers
Why are competitive factors important for MNCs?
Companies take action to match competitors’ moves, companies look for less competitive markets
What is the WTO?
Responsible for policing the world trading system and ensuring nations adhere to rules established in WTO treaties
What is the IMF?
Maintains order and stability in the IMF
What is the World Bank?
Promotes economic development
What is the UN?
Maintains international peace and security, develops friendly relations among nations
What are some of the cross-border transactions?
International trade, international portfolio investment, FDI
