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Impact of Globalization

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THE IMPACT OF GLOBALIZATION ON INTERNATIONAL BUSINESS

GROUP NO-01
FMG3231 INTERNATIONAL BUSINESS ECONOMICS
FACULTY OF MANAGEMENT

CONTENTS PAGE NO
An introduction to international business 3
What is globalization? 6
The impact of globalization on international business 6
Future of international business and globalization 12
Summary 12
Reference 13

1. AN INTRODUCTION TO INTERNATIONAL BUSINESS
International business involves all commercial transactions—private and governmental—between parties of two or more countries. Global events and competition affect almost all firms—large or small. However, the international environment is more complex and diverse than a firm’s domestic environment.
An international business has many options for doing business, it includes, * Exporting goods and services. * Giving license to produce goods in the host country. * Starting a joint venture with a company. * Opening a branch for producing & distributing goods in the host country. * Providing managerial services to companies in the host country.

Features of International Business

Large scale operations: In international business, all the operations are conducted on a very huge scale. Production and marketing activities are conducted on a large scale. It first sells its goods in the local market. Then the surplus goods are exported.
Integration of economies: International business integrates (combines) the economies of many countries. This is because it uses finance from one country, labour from another country, and infrastructure from another country. It designs the product in one country, produces its parts in many different countries and assembles the product in another country.
Dominated by developed countries and MNCs: International business is dominated by developed countries and...

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