International Business Chapter 1

International Business

Commercial transaction that crosses the borders of two or more nations.

Imports

Goods and services purchased abroad and brought into a country.

Exports

Goods and services sold abroad and sent out of a country.

Multinational Corporation

Business that has direct investments abroad in multiple countries.

Born Global Firm

Company that adopts a global perspective and engages in international business from or near its inception.

Globalization

Trend toward greater economic, cultural, political, and technological interdependence among national institutions and economics.

Sustainability

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

General Agreement on Tariffs and Trade

Also called GATT, a treaty designed to promote free trade by reducing both tariffs and nontariff barriers to international trade.

World Trade Organization

International organization that enforces the rules of international trade.

World Bank

Agency created to provide financing for national economic development efforts.

International Monetary Fund

Agency created to regulate fixed exchange rates and to enforce the rules of the international monetary system.

GDP

Value of all goods and services produced by a domestic economy over a one-year period.

GNP

Value of all goods and services produced by a country's domestic and international activities over a one-year period.

E-business

Use of computer networks to purchase, sell, or exchange products; to service customers; and to collaborate with partners.

Benefits of Globalization of Markets

Reduce market cost, create new market opportunities, levels out uneven income streams, global sustainability, and local buyers need's.

Benefits of Globalization of Production

Access lower cost workers, technical expertise, and production input.