Module 1: Globalization

• It refers to commerce in which goods, services, or resources cross the borders of two or more nations.

  International Business
• It is defined as any business that has productive activities in two or more countries

  Multinational Company
• THREE FACTORS OF MULTINATIONAL COMPANY

  1. Business Operations
  2. Productive Activities
  3. Two or More Countries
• WHY IS INTERNATIONAL BUSINESS IMPORTANT?

  1. Materials, Parts, and Demand
  2. Global Dependency
  3. Global Opportunities
  4. Improved Political Relations
• Products often made in the United Stated and often include materials from around the world.

  Materials, Parts, and Demand
• It exists when items that consumers need and want are created inother countries.

  Global Dependency
• Many businesses, large and small, increase sales and profits with foreign trade companies that are involved in the global economy.

  Global Opportunities
• This helps to improve mutual business understanding, communication and the level of respect among people in different nations.

  Improved Political Relations
• FACTORS TO CONSIDER IN MATERIALS, PARTS, AND DEMAND

  1. Access to Resources and Materials
  2. Cost Efficiency
  3. Global Supply Chains
  4. The Demand and Market Access
  5. Innovation and Collaboration
• FACTORS TO CONSIDER IN GLOBAL OPPORTUNITIES:

  1. Increased Market Reach
  2. Diversified Revenue Streams
  3. Leveraging Specialization
  4. Profit Growth
  5. Technological Exchange
  6. Global Brand Recognition
  7. Competitive Advantage
• FACTORS TO CONSIDER IN IMPROVED POLITICAL RELATIONS:

  1. Trade Facilitation
  2. Mutual Trust
  3. Open Channels of Communication
  4. Cultural Exchange
  5. Reduced Regulatory Barriers
  6. Enhanced Business Collaboration
  7. Shared Economic Goals
  8. Stability and Predictability
  9. Cross-Cultural Respect
• How they improved relations and trade agreements?

  • Normalization of Relations
  • Bilateral Trade Agreement
  • Accession to WTO
• Impact on Trade and Business:

  • Trade Expansion
  • Export Opportunities
  • Investment Inflows
  • Mutual Benefits
• Improved political relations contribute to a sense of mutual trust between countries.

  Mutual Trust
• Favorable political relations can result in open lines of communication between governments and business communities of different nations.

  Open Channels of Communication
• Strong political relations can lead to cultural exchange programs and initiatives.

  Cultural Exchange
• Improved political relations can lead to the reduction of trade barriers and regulatory obstacles that hinder international business.

  Reduced Regulatory Barriers
• Positive political relations create an atmosphere of cooperation, encouraging businesses to collaborate on projects, research, and innovation.

  Enhanced Business Collaboration
• Countries with improved political relations often share economic goals and interests

  Shared Economic Goals
• Positive political relations contribute to geopolitical stability.

  Stability and Predictability
• When political relations improve, it sends a message of respect and willingness to cooperate.

  Cross-Cultural Respect
• It is when countries and people from all around the world connect and interact more easily

  Globalization
• TYPES OF GLOBALIZATION

  1. Economic Globalization
  2. Cultural Globalization
  3. Political Globalization
  4. Technological Globalization
• This is a type of globalization focuses on the integration and interdependence of economies around the world.

  Economic Globalization
• It refers to the sharing of ideas, meanings, hobbies, and values around the world such a way to extend and intensify social relations.

  Cultural Globalization
• The increasing influence of international intergovernmental organizations.

  Political Globalization
• IMPORTANCE OF POLITICAL GLOBALIZATION

  1. Global Problem Solving
  2. Peace and Security
  3. Human Rights and Equality
  4. Rule of Law
  5. Global Governance
• It refers to the accelerated spread and integration of technology, information, and communication systems on a global scale.

  Technological Globalization
• Factors of Technological Globalization

  • Advancement of Information Technology
  • Decreasing Costs of Global Communication
• It is the making, buying, and selling of goods and services within a country.

  Domestic Business
• Business activities needed for creating, shipping, and selling goods and services across national borders.

  International Business
• WHY DO COMPANIES GO INTERNATIONAL?

  1. Minimize Competitive Risk
  2. Acquire Resources
  3. Expand Sales
  4. Diversify Sources of Sales and Supplies
• Many companies enter international business for defensive reasons.

  Minimize competitive risk
• Manufacturers and distributors seek out products, services, and components produced in foreign countries.

  Acquire resources
• By reaching international markets, companies increase their sales faster than when they focus on a single market, that being a domestic one.

  Expand sales
• This means a business does not rely solely on one market or customer group to buy its products or services. Instead, it seeks out different markets or customer segments to sell to.

  Diversify sources of sales and supplies
• Examples of Institutions and policies that affect International Trade:

  1. Trade Agreements
  2. Tariffs and Trade Barriers
  3. Exchange Rates
  4. Brand and Reputation
• They are deals between countries that make it easier to trade by reducing tariffs (taxes on imports) and other trade barriers.

  Trade Agreements
• They are taxes imposed on imported goods, which can make them more expensive and less attractive to buyers

  
  

  Tariffs
• They include quotas

  Trade Barriers