InternationalBusiness

Globalization
Globalization
CoinedbyTheodoreLevitt
asiftheentireworld(ormajorregionsofit)werea
singleentity;[suchanorganization]sellsthesame
thingsinthesamewayeverywhere

EconomicGlobalization
Internationalintegrationofgoods,technology,
information,labor,andcapital
Processofmakingthisintegrationhappen

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DriversofGlobalization
Expansionoftechnology
Businessisbecomingmoreglobalbecause
Transportationandcommunicationscostsaremoreconducive
forinternationaloperations
Transportationisquicker
Communicationsenablecontrolfromafar

Liberalizationofcrossbordermovements
Lowergovernmentalbarrierstothemovementofgoods,
services,andresourcesenablecompaniestotakebetter
advantageofinternationalopportunities

DriversofGlobalization
Developmentofsupportinginstitutional
arrangements(UN,WTO,IMF&WorldBank)
Institutionalarrangements
Aremadebybusinessandgovernment
Easeflowofgoods
Reducerisk

Increaseinglobalcompetition
Morecompaniesoperateinternationallybecause
Newproductsquicklybecomeglobal
Companiescanproduceindifferentcountries
Domesticcompaniescompetitors,suppliers,andcustomers
becomeinternational
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