CHAPTER 1 - Learning Objectives 1. What is international business? 2. What are the key concepts in international trade and investment? 3. How does international business differ from domestic business? 4. Who participates in international business? 5. Why do firms internationalize? 6. Why study international business? QUESTION • International business is defined as the performance of ________ activities by firms across national borders. • A) marketing and fiduciary • B) trade and investment • C) finance and operational • D) manufacturing and sales The Nature of International Business • What are examples of VALUE-ADDING ACTIVITIES? What is the VALUE CHAIN? All value-adding activities—including sourcing, manufacturing, and …show more content…
Much of the difference in the growth of exports versus GDP is due to advanced (or developed) economies, such as Britain and the United States, now sourcing many of the products they consume from low-cost manufacturing locations, such as China and Mexico. For example, although the United States once produced most of the products it consumed, today it depends much more on imports. Rapid integration of world economies is fueled by such factors as advances in information and transportation technologies, decline of trade barriers, liberalization of markets, and the remarkable growth of emerging market economies. QUESTION Which of the following best explains why export growth has outpaced the growth of domestic production during the last few decades? • A) Both world exports and domestic production have grown significantly over the past 30 years. • B) The cost to import products is generally higher than the cost to produce domestic products. • C) Growth in gross domestic product in most countries has steadily increased since 1970. • D) Advanced economies now source many of their consumable products from low-cost manufacturing nations. Foreign Direct Investment (FDI) Inflows into World Regions (in Billions of U.S. Dollars per Year) This exhibit illustrates the dramatic growth of FDI into various world regions since the 1980s. The exhibit reveals that the dollar volume of FDI has grown immensely since the
As one determinant of GDP is exports, it is relevant to discuss the matter with relevance to the UK and Germany. As mention in the literature review, during 1955-1960 exports in Germany
A country needs to export more than import in order to maintain a good working economy. Wealth and power equal more export than import in a country’s trading system
22. Which is growing at a faster rate, foreign direct investment by MNCs or international trade?
Cuts in protection have increased imports but the increased efficiency has led to a comparable rise in exports. The value of exports plus imports of goods and services has risen from 32% of GDP in 1975 to 48% of GDP in 2000 (ABS), reflecting
You are employed by the local Business Development Agency and have been asked to independently research international business in relation to an international case study business of your choice. From your research you are required to put together a research report document which can be used to assist businesses who are considering trading internationally. Your work should be a result of your own independent research and contain references throughout and a bibliography. Your research should follow the guidelines set and give your own supported judgement where indicated.
imports. Now there is a need to produce and sell a much greater amount of exports to be able to
The Member of the Wedding movie and novel both have their own similarities and differences towards each other. For starters, part of the plot in the novel is focused on how she finds a soldier and gives her date while in the movie the main character meets the soldier, but doesn’t go on a date with him and only have a drink. One similarity may be is that the main character ends up smashing a glass on his head due to him trying to influence her to go to his hotel room where he would attempt to have intercourse with her.
FDI allows the home country to invest into the host country to produce, advertise, and distribute products, in order to upsurge their market share and provides a long-term investment and enhancement. (Moosa, 2002)
1) The scope of any economy is that of creating a balance between its exports and imports, or exporting more than importing, in order to generate national gains and revenues. Within the United States however, it has often happened that the totality of the imports exceeded the totality of the exports. The result of
Another issue is export. What proportion of the nation's output that is potentially exportable is in fact exported? One way to address this more narrow question is to begin with the domestic output of the goods-producing sectors of the economy, as measured by the value of final exports of goods, plus change in goods inventories,
“Next stop will be New York Penn station, I repeat New York Penn station.” The loud voice of the conductor echoed. I have just woken up from my long nap from New Jersey, and opened my eyes with the vision of people rising up from their seats in unison as if it was a rehearsed dance piece. It took me a moment to realize that I am about to step into the streets of New York City, the Big Apple. This has been a dream of mine since I was a child and a streak of excitement shook me as I rose from my seat. The train comes to a screeching break, bringing all of us to a harsh stop, and the hissing doors open welcoming us to Penn station New York City!
Developed Countries have a high per capita income and GDP as compared to Developing Countries.
In the years between 1990 and 2001 when global gross domestic product rose 27%, what was the growth in global exports?
Location is the most important factors for business success for international business. The world offers different locales, opportunities and risks as the companies try to create value from increasing sales or acquiring competitively useful assets.