IntroductiontoInternationalBusiness-RutgersUniversity.pdfVIP

International Business Definitions 1) IB field is concerned with the issues facing international companies and governments in dealing with all types of cross- border transactions. 2) IB involves all business transactions that involve two or more countries. 3) IB consists of transactions that are devised and carried out across borders to satisfy the objectives of individuals and organizations. 4) IB consists of those activities private and public enterprises that involve the movement across national boundaries of goods and services, resources, knowledge or skills. Multinational Enterprises A MNE has a worldwide approach to foreign markets and production and an integrated global philosophy encompassing both domestic and international markets. International Management defined as a process of accomplishing the global objectives of a firm by (1) effectively coordinating the procurement, allocation, and utilization of the human, financial, intellectual, and physical resources of the firm within and across national boundaries and (2) effectively charting the path toward the desired organizational goals by navigating the firm through a global environment that is not only dynamic but often very hostile to the firm’s very survival. 1 International Trade: When a firm exports goods or services to consumers in another country. Foreign Direct Investment: When a firm invests resources in business activities outside its home country. The Globalization of the World Economy Globalization of markets Globalization of production Decline of barriers to trade (WTO) Increased tech