what does international management involve?
international management involves:
-applying management concepts and techniques in a multinational environment
&
-adapting management practices to different economic, political, and cultural contexts
what are the features of a multinational corporation?
a multinational corporation has:
- operations in more than one country
- international sales
- mixed nationalities between managers and owners
list and explain the key players in international business
- MNCs: a business that has direct investments abroad in multiple countries
- Small business and Entrepreneurs: small companies and individuals becoming increasingly active in international trade and investment
- Born Global Firms: firm adopts a global perspective and engages in international business from or near its inception ex. amazon, ebay, ppl could buy things anywhere from the world (minimal restrictions in going global)
what is globalization
globalization is the political, economic, social, cultural, and technological integration among countries around the world
what hastens globalization? List and define.
globalization is hastened by offshoring and outsourcing:
- offshoring: process by which companies undertake some activities at offshore locations instead of in their countries or origin
- outsourcing: subcontracting or contracting out of activities to external locations instead of their countries of origin
what are the 2 main drivers of globalization?
fallen barriers of trade and technology
What are the types of globalization? list and define
- globalization of markets: convergence in buyer preferences in markets around the world
- globalization of production: dispersal of production activities worldwide to minimize costs or maximize quality
pros of globalization?
wealth, jobs, technology, lower prices, and availability of goods
cons of globalization?
offshoring of business service jobs to lower-wage countries, growing trade deficits, slow wage growth, and environmental/social impacts
Global and economic integration levels
free trade area -> customs union -> common market -> economic union -> political union
what are one of the trade patterns of nations?
high income nations tend to trade within themselves, but have a slight change where high nations are starting to trade with lower income nations
What is a foreign direct investment (FDI)
investment in property, plant, or equipment in another country
