Page 6 - DMGT545_INTERNATIONAL_BUSINESS

Unit 1: International Business: An Overview
Hitesh Jhanji, Lovely Professional University

unit 1: international Business: an overview notes

contents

Objectives
Introduction
1.1 Evolution of International Business
1.2 Drivers of Globalization
1.3 Influences of International Business
1.4 Stages of Internationalization

1.5 Differences between Domestic and International Business
1.6 International Business Approaches
1.7 Advantages of International Business
1.8 Summary

1.9 Keywords
1.10 Review Questions
1.11 Further Readings

objectives

After studying this unit, you should be able to:

l z Enumerate the concept of international business
l z Analyse the evolution of international business
l z Discuss the drivers of globalization

l z Describe the stages of internationalization
l z Explain the difference between domestic and international business
l z Discuss the approaches of international business
introduction

One of the most dramatic and significant world trends in the past two decades has been the
rapid, sustained growth of international business. Markets have become truly global for most
goods, many services, and especially for financial instruments of all types. World product trade
has expanded by more than 6 percent a year since 1950, which is more than 50 percent faster than
growth of output the most dramatic increase in globalization, has occurred in financial markets.
In the global forex markets, billions of dollars are transacted each day, of which more than 90
percent represent financial transactions unrelated to trade or investment. Much of this activity
takes place in the so-called Euromarkets, markets outside the country whose currency is used.
This pervasive growth in market interpenetration makes it increasingly difficult for any country
to avoid substantial external impacts on its economy. In particular massive capital flows can push
exchange rates away from levels that accurately reflect competitive relationships among nations
if national economic policies or performances diverse in short run. The rapid dissemination rate
of new technologies speeds the pace at which countries must adjust to external events. Smaller,

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