International Business Lectures (2014)

Apunte Inglés
Universidad Universidad Pompeu Fabra (UPF)
Grado International Business Economics - 2º curso
Asignatura International Business
Año del apunte 2014
Páginas 2
Fecha de subida 22/06/2014
Descargas 15

Vista previa del texto

International Business Lectures What is International business?    It is a business whose activities are carried out across national borders. Includes all the steps involved in the production of a product (international trade, foreign manufacturing, transportation, tourism, advertising, construction, retailing, wholesaling, and mass communication) The study of transactions across national borders which pursues to satisfy organizations and people All business transactions (private and public) which involve two or more nations Why is it important?   International competition is increasing worldwide Most companies face international competition at home GLOBALIZATION It’s a process of shifting towards a more integrated and interdependent world economy. It’s reflected in increasing cross‐border flows of three types of entities: goods and services, capital and know‐how.
Components Markets Fusion of different markets in one global market Production Firms get goods and services supplied from different firms around the world (advantages in quality and cost) Differences in meanings Multidomestic Company Has multi-country affiliates, each of which Formulates its own business strategy based on perceived market differences Global Company Standardizes and integrates operations worldwide in all functional areas Trends favoring Globalization Trends International trade growth Foreign Investment Tariffs reduction Development of communication technology Development of computers Internet Development of transportation Contenedorization More about Globalization PROS Lower prices for goods and services Economic growth stimulation Increase in consumer income Creates jobs → Countries specialize in production of goods and services that are produced most efficiently CONS Companies move to countries with fewer labor and environment regulations Loss of sovereignty Wage rates of unskilled workers in advanced countries declines Destroys manufacturing jobs in advanced countries CHANGES IN DEMOGRAPHICS OF THE GLOBAL ECONOMY → directly from WHY? The important information is all represented in graphs.