Lecture 1-2 Flashcards
What is International Business?
Individual/firm that engages in international economic activities
What are the lvls of analysis in IB
-Business Environment
-Strategy
-Management
what is Globalization
Globalization is the broadening and deepening of
interactions among peoples and countries of the world
Broadening
extension of economic and geographic links to
encompass virtually all major societies and states
Deepening
An increase in the frequency/intensity of state and societal interactions
What is driving the move toward greater globalization?
-Declining trade/Investment barriers
-technological change
-More companies participating in global commerce
-Globalization of markets
-Globalization of production
Localization
segmentation and contraction of the interactions and interdependences among peoples and countries of the world
What are the forces of localization
-Nationalism
-Cultural diversity and values
-History and tradition
-Security concerns
Outsourcing
Sourcing the goods/services from different locations taking
advantage of differences in costs and quality of land, labor ,energy and capital
What is PPP
Purchasing power purity
GDP
Gross Domestic product- total market value of all final foods and services produced within a country in a given period of time
GNI
Gross national income- it means GDP + Net income from nonresident,
CAGE distance frame work
Cultural
administrative
geographic
economic
Glocalization
Boht forces of globalization and localization are taking place at the same time
