Global Business Marketing/ International Business

Globalization
The shift toward a more integrated and interdependent world economy
Global Market
-Falling trade barriers make it easier to sell globally
-Consumers’ tastes and preferences are converging on some global norm
-Firms promote the trend by offering the same basic products worldwide
Factors of production
Land
Labor
Capital
Energy
World Trade Organization
-Polices the world trading system
-Makes sure that nation states adhere to the rules
-Promotes lower barriers for trade and investment
International Monetary Fund
-Maintains order international monetary system
-Lender of last resort for countries in a crisis
The World Bank
-Promotes economic development via low interest loans for infrastructure projects
The United Nations
-Maintains international peace and security
-Develops friendly relations among nations
-Cooperates in solving international problems
-Is the center for harmonizing the actions of nations
G20
Forum through which major nations tried to launch a coordinated policy response to the global financial crisis in 2008-2009
What is driving globalization?
-Declining barriers to free flow of goods, service, and capital
-Technological change
What does globalization mean for firms?
-Lower barriers to trade and investment
-Lower transportations costs
-Low cost information processing and communications
-Low cost global communications networks
-Global communication networks
The 4 important trends
-The changing world order
-The changing of nature
of the multinational enterprise
-The changing of foreign direct investment
-The changing world output and world trade picture
Multinational Enterprise
Any business that has productive activities in two or more countries