Chapter 1
Introduction
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
1-1 explain the concepts of international business and global business.
1-2 give three reasons why it is important to study global business.
1-3 articulate one fundamental question and two core perspectives in the study of
global business.
1-4 describe the importance of globalization, semi globalization, and risk management.
1-5 state the size of the global economy and its broad trends, and understand your likely bias in
the globalization debate.
1-6 participate in three leading debates concerning global business.
1-7 draw implications for action.
1-8 understand the structure of the book and the discipline.
WHAT IS GLOBAL BUSINESS?
international business (I B) – (1) a business (firm) that engages in
international (cross-border) economic activities and/or (2) the action of doing
business abroad
global business – business around the globe
FIRMS IN GLOBAL BUSINESS
multinational enterprise (M N E) – a firm that engages in foreign direct
investment
foreign direct investment (F D I) –investment in, controlling, and managing
value-added activities in other countries
Note that global business also addresses domestic firms competing and/or
collaborating with foreign entrants in their markets
Table 1.1: Why Study Global Business?
•Enhance your employability and advance your career in the global economy
•Better preparation for possible expatriate assignments abroad
•Stronger competence in interacting with foreign suppliers, partners, and
competitors, and in working for foreign-owned employers in your own country
? What do you hope to gain from taking this course and studying global
business?
