Course Intro Flashcards
(25 cards)
Why must firms look beyond their home markets?
To grow revenue, reduce dependence on one market, and achieve scale efficiencies.
Name one negative consequence of globalization.
Increased competition or vulnerability to global economic shocks.
What does the coffee supply chain example demonstrate?
Everyday products often rely on international sourcing and logistics.
What does increased mobility suggest for businesses?
A need to understand expatriate markets and global talent mobility.
Name four major forces that facilitate globalization.
Reduction in trade barriers
Industrialization & economic development
Integration of financial markets
Advances in technology
What legal and political barriers might firms face?
Trade tariffs, regulations, currency controls, and political instability.
What is globalization?
The growing interdependence of economies, cultures, and populations via trade, investment, technology, and information flow.
What is “contagion” in a global context?
A crisis (economic or health-related) spreading rapidly across countries.
What is the “internationalization of business”?
Companies operating globally—selling, sourcing, investing, and partnering across borders.
Give one example of globalization in everyday life.
Products like Starbucks, McDonald’s, or Apple are found worldwide.
What does economic freedom influence?
The ease of doing business, investing, and entrepreneurial activity.
What does “Death of Distance” refer to in globalization?
Physical distance matters less due to technology and communication advancements.
Why is understanding legal systems important in global business?
Because laws vary widely and can affect operations, contracts, and risk.
Give an example of cultural globalization.
Watching the same TV show or listening to the same music in different countries.
What do firms need to do to succeed internationally?
Develop new capabilities and adapt to foreign market conditions.
What are common challenges in international business?
Legal/regulatory differences
Cultural barriers
Currency fluctuation
Economic disparities
Geopolitical risks
What do international versions of Disneyland (e.g., Paris, Tokyo) show about globalization?
Global brands localize their presence to appeal to international audiences.
What is the KOF Globalization Index?
A tool to measure the degree of globalization in countries worldwide.
How do levels of development impact international strategy?
Firms must adjust products and pricing based on income levels and infrastructure.
What are some advantages for firms going global?
Increased revenue
Risk diversification
Efficiency gains
Access to raw materials
Investor attractiveness
Name one positive consequence of globalization for firms.
Larger customer base and increased efficiency.
Why do national differences still matter in international business?
Countries differ in legal systems, economic development, political structures, and economic freedom.
Why are supply chains increasingly global?
To reduce costs, access quality inputs, and meet global demand efficiently.
What does the phrase “The world has become a small place” imply?
Enhanced global connectivity and reduced barriers through technology and trade
