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1、Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,1-1,International BusinessEnvironments & Operations,14eDaniels Radebaugh Sullivan,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,1-2,Chapter 1,Globalization and International Business,Copyright 2013 Pearson Educat
2、ion, Inc. publishing as Prentice Hall,1-3,Learning Objectives,To define globalization and international business and show how they affect each otherTo understand why companies engage in international business and why international business growth has acceleratedTo discuss globalizations future and t
3、he major criticisms of globalizationTo become familiar with different ways in which a company can accomplish its global objectivesTo apply social science disciplines to understanding the differences between international and domestic business,Copyright 2013 Pearson Education, Inc. publishing as Pren
4、tice Hall,1-4,Introduction,Learning Objective 1: To define globalization and international business and show how they affect each other,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,1-5,Introduction,Globalization is the ongoing process that deepens and broadens the relationships
5、 and interdependence among countries International business is a mechanism to bring about globalization,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,1-6,Introduction,International business consists of all commercial transactionsincluding sales, investments, and transportationth
6、at take place between two or more countriesincreasingly foreign countries are a source of both production and sales for domestic companies,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,1-7,Introduction,It is important to study international business becauseMost companies are eit
7、her international or compete with international companiesModes of operations may differ from those used domesticallyThe best way of conducting business may differ by countryAn understanding helps you make better career decisionsAn understanding helps you decide what government policies to support,Co
8、pyright 2013 Pearson Education, Inc. publishing as Prentice Hall,1-8,Introduction,Factors in International Business Operations,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,1-9,Forces Driving Globalization,Increase in and application of technologyLiberalization of cross-border t
9、rade and resource movementsDevelopment of services that support international businessGrowing consumer pressuresIncreased global competitionChanging political situationsExpanded cross-national cooperation,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,1-10,Measuring Globalization
10、,Globalization can be difficult to measureThe A.T. Kearney/Foreign Policy Globalization Index ranks countries byEconomic dimensionsTechnological dimensionsPersonal contactPolitical dimensionsrecently ranked Singapore and Hong Kong as most globalized,Copyright 2013 Pearson Education, Inc. publishing
11、as Prentice Hall,1-11,Costs of Globalization,Learning Objective 3: To discuss globalizations future and the major criticisms of globalization,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,1-12,Costs of Globalization,Threats to national sovereigntylose freedom to “act locally”Eco
12、nomic growth and environmental stressgrowth consumes nonrenewable natural resources and increases environmental damageGrowing income inequality and personal stresspromotes global superstars at the expense of others,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,1-13,Costs of Glob
13、alization,Offshoring involves the transferring of production abroad it can be beneficial because it reduces costsbut, it also means that jobs move abroad Yet, offshoring may also create new, better jobs at home,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,1-14,Why Companies Eng
14、age in IB,Learning Objective 2:To understand why companies engage in international business and why international business growth has accelerated,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,1-15,Why Companies Engage in IB,To expand salespursuing international sales increases t
15、he potential market and potential profitsTo acquire resourcesmay give companies lower costs, new and better products, and additional operating knowledgeTo diversify or reduce risksinternational operations may reduce operating risk by smoothing sales and profits, preventing competitors from gaining a
16、dvantage,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,1-16,Why Companies Engage in IB,These three reasons sales expansionresource acquisitionrisk minimizationguide all decisions about whether, where, and how to engage in international business,Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall,1-17,Modes of Operations in IB,Learning Objective 4:To become familiar with different ways in which a company can accomplish its global objectives,
