BSB119 Lecture Notes - Lecture 1: Thinkpad, General Agreement On Tariffs And Trade, Free Trade
Week 1 Global Business Lecture Notes
Introduction
Globalisation and International Business
• What is Globalisation?
o Globalisation refers to the shift towards a more integrated and
interdependent world economy
• What is International Business?
o - Business undertaken across international borders
o Business transactions between parties from more than one country
• An important consideration…
o - National economies are increasingly integrated and interdependent… BUT,
diversity remains (how may this impact on businesses and individuals?)
The Globalisation of markets
• Many historically distinct and separate national markets are merging into one huge
global marketplace
• Implications:
o Tastes and preferences of consumers in different nations are beginning to
converge
o Today's firm operates in an environment that offers more opportunities, but
is also more complex and competitive than that faced a generation ago
The globalisation of production
• There is a tendency among many firms to source goods and services from different
locations around the globe
o Why? To take advantage of national differences in the cost and quality of
factors of production
o Firms can thus compete more effectively and efficiently against their rivals
• Implications:
o Improvements in transportation technology, including jet transport,
temperature controlled containerized shipping, and coordinated ship-rail-
truck systems have made firms better able to respond to international
customer demands
• Sourcing goods and services from different locations around the globe in an attempt
to take advantage of national differences in the cost and quality of factors of
production, thereby allowing them to compete more effectively against their rivals
• Examples of globalisation of production:
o Boeings 777 and 787 commercial aircrafts
o Lenovos ThinkPad laptop
Global institutions
• Over the past half century, a number of important global institutions have been
created to:
o Help manage, regulate and police the global marketplace
o Support the international business environment
o We shall discuss these institutions in greater detail in Week 12
find more resources at oneclass.com
find more resources at oneclass.com
