International Business

Sixteenth Edition, Global Edition

Chapter 1
International Business
and Globalization

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Learning Objectives (1 of 2)
1-1 Relate globalization and international
business (IB) to each other and explain why
their study is important

1-2 Grasp the forces driving globalization and IB

1-3 Discuss the major criticisms of globalization

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Learning Objectives (2 of 2)
1-4 Assess the major reasons companies seek to
create value by engaging in IB

1-5 Define and illustrate the different operating

modes for companies to accomplish their
international objectives

1-6 Recognize why national differences in

companies’ external environments affect how
they may best improve their IB performance

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Factors in IB Operations
Objective 1-1
Figure 1.1 Factors in IB Operations

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Globalization and IB
Objective 1-1
• What is Globalization?
• Why Globalization?
• The connection between Globalization and IB.
• Why study IB?

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The Forces Driving Globalization and IB
Objective 1-2
• Globalization
− Has been growing.
− Is less pervasive than generally thought.
− Has economic and noneconomic dimensions.
− Is stimulated by several factors.

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Factors in increased Globalization
Objective 1-2
• Factors in increased Globalization
− Rise in and application of technology
− Liberalization of cross-border trade and resource
movements
− Development of services that support IB
− Growth of consumer pressures
− Increase in global competition
− Changes in political situations and government
policies
− Expansion of cross-national cooperation

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Criticisms (sự phê bình) of
Globalization and IB

Objective 1-3
• Sovereignty (quyền tối cao, chủ quyền)
• Environment
• Some people may lose
• Increase to personal stress

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Why engage in IB?
Objective 1-4

• Sales expansion
• Resource acquisition
• Risk reduction

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IB Operating Modes
Objective 1-5
• Merchandise Exports and Imports
• Service Exports and Imports
• Investments

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Types of International Organizations
Objective 1-5
• MNE
• Multinational Enterprise
• Collaborative Arrangements

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Factors Affecting Ability to Operate Abroad
Objective 1-6

• Physical factors
• Institutional factors
• Competitive factors

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