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CHAPTER 1

GLOBAL PENG

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CHAPTER 1 LEARNING OBJECTIVESAfter studying this chapter, you should be able

to:

1. Explain the concepts of international business and global business

2. Give two reasons why it is important to study global business

3. Articulate the fundamental question that study of global business seeks to answer and two perspectives from which to answer it

4. Identify three ways of understanding what globalization is

5. State the size of the global economy and its broad trends

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LO1: INTERNATIONAL BUSINESSAND GLOBAL BUSINESS

International business - business (firm) that engages in international (cross-border) economic activities or the action of doing business abroad

Global business - business around the globe, including both international (cross-border) activities and domestic business activities.

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LO1: THE CONTRIBUTION OF EMERGING ECONOMIES

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Emerging Economies in the Global Market

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LO2: WHY STUDY GLOBAL BUSINESS?

Career Advancement:Expertise in global business is often a prerequisite to join the top ranks of firms.

Globalization: This is an age of extensive global interaction and competition.

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LO3: THE FUNDAMENTAL QUESTION

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LO4: THREE VIEWS ON GLOBALIZATION

A long-run historical evolution since the dawn of human history

A long-run historical evolution since the dawn of human history

A new force sweeping through the world in recent times

A new force sweeping through the world in recent times

A pendulum that swings from one extreme to another from

time to time

A pendulum that swings from one extreme to another from

time to time

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LO4: SEMIGLOBALIZATION

Suggests that barriers to market integration at borders are high but not high enough to

completely insulate countries from each other

Total Isolationism

Total Globalization

Semiglobalization

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LO5: THE GLOBAL ECONOMY

Changes in the global Fortune 500

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LO5: THE GLOBALIZATION DEBATE AND YOU