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Globalization's Impact on Business Dynamics

Chapter 1 discusses globalization as the mobility of commodities, data, and knowledge, impacting both consumers and employees, even for firms without international involvement. It highlights benefits such as increased trade and job opportunities, alongside threats like work safety concerns and unethical labor practices. The chapter also distinguishes between international business concepts and the differences between multinational enterprises (MNEs) and international firms.

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Nhi Luu
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9 views1 page

Globalization's Impact on Business Dynamics

Chapter 1 discusses globalization as the mobility of commodities, data, and knowledge, impacting both consumers and employees, even for firms without international involvement. It highlights benefits such as increased trade and job opportunities, alongside threats like work safety concerns and unethical labor practices. The chapter also distinguishes between international business concepts and the differences between multinational enterprises (MNEs) and international firms.

Uploaded by

Nhi Luu
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Chapter 1: International business in an age of globalization

1. What is globalization? Why is globalization important even to firms that do not have any
international involvement at present? How does globalization affect the consumer and the
employee?

- Globalization is the mobility of commodities, data and knowledge around the world.

- Firms not having international involvement can still be affected by the globalization as the global
supply chain is now very complex and involves in almost every stage of the business model.

- Globalization can either negatively and positively affect consumer and employee. Consumers can
have more choices during shopping, purchase things around the world through online platform;
however, disruptions in the supply chain can cause time-consuming events. Employees in developing
countries benefits from globalization as MNEs tend to seek for cheap labor in emerging nations.
Nevertheless, work safety and child labor are raising concerns as there little strict rules from the
based countries about working rules.

Summary:

a. Globalization is the accelerated interdependence of economic and business activities across


national boundaries

b. Globalization influences the availability and pricing of products and services around the world,
while often blurring their source and identity.

c. Globalization affects your career opportunities and the skills you will need to be successful.

2. What are the benefits of globalization, and what are its threats, both real and perceived?

- Benefits: Increased international trade, cultural infusion, job opportunities for developing
countries.

- Threats: Work safety, unethical working environment, child labor, local shops

3. What do the terms “international business”, “international transaction”, “international trade”,


and “international investment” mean? Can you distinguish between the MNE and the international
firm?

Oxford definition:

+) business (n)

+) transaction (n)

+) trade (n)

+) investment (n)

Difference between MNE and international firm

4. What are the differences between international business and domestic business? What is the
source of these differences?

5. Why do firms expand globally? What do they hope to gain and what hazards do they face? Does
evey firm seek identical goals or face the same obstacles and opportunities when expanding into
international markets?

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