International Business
A business activity that takes place between companies in different countries.
International business
The process of countries becoming more connected through trade, communication, technology, and travel.
Globalization
Differences in customs, communication styles, and practices that complicate international business.
Cultural differences
Selling goods or services to customers in another country.
Exporting
Communication technology, FDI, migration, transportation, and international trade all form this.
Components of globalization
Financial risk that comes from fluctuating exchange rates.
Currency risk
Buying goods or services from another country.
Importing
Faster sharing of ideas and technology is an example of this.
Advantage of globalization
When jobs move to another country because production is cheaper.
Outsourcing
Owning foreign facilities, exporting, importing, and investing abroad are examples of this transition.
Becoming an international business
The weakening of traditional culture because of global influence.
Loss of local culture
Uncertainty caused by unstable governments that can affect business operations.
Political instability
Higher profits, access to new markets, and lower production costs are examples of this.
Advantages of international business
Worldwide manufacturing and shipping contribute to this issue.
Environmental impact of globalization
When stronger economies influence or overshadow weaker ones.
Economic dominance