Professional Documents
Culture Documents
International Business
All commercial transactions that take place
Globalization
The integration of world economies through the
reduction of barriers to the movement of trade, capital, technology, and people Made in labels dont give the full picture of a products origins
A pair of jeans
international business
because it constitutes a large and growing portion of the worlds total business Large and small companies are affected Not limited to exports and imports The local grocery store competes against Meena Bazar, Nandan and Agora, a business model adapted from foreign countries
movements
Consumers demand more variety at cheaper prices US consumers buying cheaper prescription drugs online
from Canada
international business
Changes in banking and insurance makes it easier to
Rise in income levels Companies are looking to expand sales by selling to the
changing prices In the early 2000s Nestle experienced slow growth in Western Europe and the US but made up for it with higher growth in Asia, Eastern Europe and Latin America
Criticisms of Globalization
Threat to national sovereignty Countries might become dependent on imports Foreign companies could learn valuable state secrets. This is especially true for the defense industry
Most US military contracts go to Boeing
The resultant growth hurts the environment Growth requires the use of non-renewable natural resources Increases environmental damage through pollution and deforestation
Criticisms of Globalization
Growing income inequality
Income falls for the unskilled, whose jobs are
transferred abroad
Leads to exploitation of labor
The basic principle of globalization is the shift
towards cheaper raw material. Companies will always look to move to the country with the lowest labor cost and leave behind any location with rising labor costs
MNC
An MNC (multi-national corporation) is a company
that has a worldwide approach to markets and production or one with operations in more than one country
The End