MBA-IB International Business EnvironmentUnit I 2new technologies speeds the pace at which countries must adjust to externalevents. Smaller, more open countries, long ago gave up illusion of domesticpolicy autonomy. But even the largest and most apparently self-containedeconomies, including the US, are now significantly affected by the globaleconomy. Global integration in trade, investment, and factor flows, technology,and communication has been tying economies together.Why then are these changes coming about, and what exactly are they? It is inpractice, easier to identify the former than interpret the latter. The reason is thatduring the past few decades, the emergence of corporate empires in the worldeconomy, based on the contemporary scientific and technological developments,has led to globalization of production. As a result of international production,co-operation among global productive units, the large-scale capital exports, “theexport of production” or “production abroad” has come into prominence asagainst commodity export in world economy in recent years. Globalcorporations consider the whole of the world their production place, as well astheir market and move factors of production to wherever they can optimally becombined. They avail fully of the revolution that has brought about instantworldwide communication, and near instant-transformation. Their ownership istransnational; their management is transnational. Their freely mobilemanagement, technology and capital, the modern agent for stepped-up economicgrowth, transcend individual national boundaries. They are domestic in everyplace, foreign in none-a true corporate citizen of the world. The greaterinterdependence among nations has already reduced economic insularity of thepeoples of the world, as well as their social and political insularity.
DEFINITION OF INTERNATIONAL BUSINESS:
International business includes any type of business activity that crosses nationalborders. Though a number of definitions in the business literature can be foundbut no simple or universally accepted definition exists for the term international