IB 1 Flashcards
international business
commercial transaction that cross borders
imports
g/s purchased abroad and brought in
exports
g/s sold abroad and sent out
multinational corporation (MNC)
has directs investments abroad in multiple countries
foreign direct investment (FDI)
purchase of physical assets/ownership in another country to gain a measure of management control
born global firm
global perspective that engages in international business from inception and quickly achieves a competitive advantage that is
- innovation based
- knowledge based
(ex.: airbnb, uber, spotify)
globalization
greater economic, cultural, political and technological interdependence among national institutions and economies that is characterized by denationalization and is different from internationalization
gross domestic product (GDP)
value of all g/s produced by a domestic economy in the span of one year
gross national product (GNP)
value of all g/s produced by domestic and international activities in the span of one year
GNP/GDP per capita
divided by its population
e-commerce
use of computer networks to purchase, sell, or exchange products, to service customers, and collaborate with partners
internet of things (IoT)
all devices and equipment that are readable, recognizable, locatable and addressable/controllable via the internet
globalization of markets + benefits (5)
convergence in buyer preferences in markets around the world.
- reduce marketing costs
- creates new market opp.
- levels uneven income streams
- local buyer’s need
- global sustainability
globalization of production + benefits (3)
the dispersal of production activities worldwide to minimize costs or maximize quality.
- lower cost workers
- technical expertise
- production inputs
general agreements on tariffs and trade (GATT) + define tariffs and nontariff + examples.
a treaty designed to promote free trade by reducing tariffs and nontariff barriers to international trade.
tariffs: taxes levied on traded goods
non tariff barriers: limits to the quantity of an imported product.
- USMCA: US, mexico, canada
- EU: european union
- APEC: asia pacific economic cooperation
2 international organizations and what they do
- world bank: agency created to provide financing for national economic development efforts
- international monetary fund: agency created to regulate fixed exchange rates and to enforce the rules of the international monetary system
digitization
process of changing information from analog to digital form for use by computers and other information technologies
digitalization
use of digital data and technology to develop new business operations, strategies, or business models
digital transformation
fundamental change in which digital technologies penetrate all areas of operations, strategy, and culture to produce customer-focused competitive advantage
examples of communication and transportation (tech)
- videoconferencing
- innovations in shipping
- GPS technology
- eco-friendly policies
globalization harms (3) and improve (3) jobs and wages
harm
- eliminates manufacturing jobs in developed nations
- causes worker dislocation that lowers wages
- exploits workers in lower-wage nations
improve
- increase wealth and efficiency in all nations
- generates labor market flexibility in developed nations
- advances the economies of developing nations and raises living standards
inequality within nations and between nations
within: wage gap between white-collar and blue-collar occupations in rich nations
between: widening the gap in average incomes between rich and poor nations
culture for and against globalization
for: allow us to profit from our differing circumstances and skills
against: homogenizes our world and destroys our rich diversity of
cultures
globalization as menace and guardian to democracy
menace: empowers supranational institutions at the expense of national government
guardian: globalization spreads democracy worldwide.
