Unit 1: Introduction to International Business and Globalization
1a. Explain the foundational concepts of international business and how cross-border operations have expanded geographically due to technological advances
- Which technological advances have allowed outsourcing to play a pivotal role in the expansion and rapid progression of international business and trade?
- What areas could challenge international businesses as they enter new international markets?
Technological advancements in communication tools have provided platforms where units within global organizations can effectively communicate, plan, and operate in real time. This has created a global business environment where rapid growth is possible, and outsourcing tasks within an organization can be assigned to different units worldwide, leading to cost savings and greater efficiencies. An international business could encounter cultural, economic, operational, and strategic challenges while expanding into new markets.
To review, see
Transportation and
Manufacturing Advances.
1b. Explain why an organization might aspire to expand beyond its domestic market
- Why would a successful business in a domestic location seek international expansion?
- What type of risks would either be different or more volatile when a business expands internationally?
Multinational corporations seek options that will give them a competitive edge in the global marketplace and increase
market share in the competitive global business environment. This can include accessing
human resources and top talent, utilizing new resources through expanded supply chains, and lowering costs. These types of companies and organizations Developing a good understanding in this area will give you a necessary foundation to which a global business is developed, experiences growth, and is sustained.
Geopolitical risks are one of the more critical aspects of understanding trends in the global business environment, and corporations and their foreign
subsidiaries must implement procedures to mitigate these risks in the future.
To review, see
Globalization and The Digital Divide.
1c. Predict future trends in the global business environment
- How has technology advanced in allowing companies, and now individuals, to have so much influence on the world?
- Outsourcing was the first major milestone in globalization; what could come next?
Technology initially provided platforms for global corporations to exert tremendous influence over customers and people worldwide. Advancements in technology have provided opportunities for individuals to create personal brands via social media and other outlets, which could lead to individuals having more power than corporations at some point. Technology will likely advance through new phases of globalization to overcome challenges and provide opportunities for individuals and companies to connect with others more rapidly and efficiently.
To review, see
Cost Drivers and
Opportunities and Threats.
1d. Evaluate key arguments for and against globalization
- What are some benefits of globalization, and who benefits?
- What are some negative aspects of globalization, and how can they be overcome?
Globalization has brought tremendous opportunity and the raising of living standards around the world in the past few decades. Developing countries have benefited from new opportunities, while developed countries can purchase goods and services at lower prices. The jobs that have shifted from developed to developing countries have left voids in certain parts of the world that are struggling to replace those jobs and career opportunities. History has shown that countries must evolve from certain specialized industries to new ones to maintain a competitive edge and grow their economies.
To review, see
Cost Drivers and
Opportunities and Threats.
Unit 1 Vocabulary
This vocabulary list includes terms you will need to know to successfully complete the final exam.
- cost savings
- geopolitical risk
- globalization
- human resources
- market share
- multinational corporations
- outsourcing
- subsidiary
- supply chain