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1、MBA-IBInternationalBusinessEnvironmentUNIT–IINTERNATIONALBUSINESS–ANOVERVIEWContentOutline·Introduction·Definitionandmeaningofinternationalbusiness·Scopeofinternationalbusiness·Specialdifficultiesininternationalbusiness·Benefitsofinternationalbusiness·U
2、nderstandingofinternationalbusinessenvironment·Frameworkforanalyzingtheinternationalbusinessenvironment·Summary·ReviewQuestionsINTRODUCTIONOneofthemostdramaticandsignificantworldtrendsinthepasttwodecadeshasbeentherapid,sustainedgrowthofinternationalbusi
3、ness.Marketshavebecometrulyglobalformostgoods,manyservices,andespeciallyforfinancialinstrumentsofalltypes.Worldproducttradehasexpandedbymorethan6percentayearsince1950,whichismorethan50percentfasterthangrowthofoutputthemostdramaticincreaseinglobalization
4、,hasoccurredinfinancialmarkets.Intheglobalforexmarkets,billionsofdollarsaretransactedeachday,ofwhichmorethan90percentrepresentfinancialtransactionsunrelatedtotradeorinvestment.Muchofthisactivitytakesplaceintheso-calledEuromarkets,marketsoutsidethecountr
5、ywhosecurrencyisused.Thispervasivegrowthinmarketinterpenetrationmakesitincreasinglydifficultforanycountrytoavoidsubstantialexternalimpactsonitseconomy.Inparticularmassivecapitalflowscanpushexchangeratesawayfromlevelsthataccuratelyreflectcompetitiverelat
6、ionshipsamongnationsifnationaleconomicpoliciesorperformancesdiverseinshortrun.TherapiddisseminationrateofUnitI1AcroPDF-AQualityPDFWriterandPDFConvertertocreatePDFfiles.Toremovetheline,buyalicense.MBA-IBInternationalBusinessEnvironmentnewtechnologiesspee
7、dsthepaceatwhichcountriesmustadjusttoexternalevents.Smaller,moreopencountries,longagogaveupillusionofdomesticpolicyautonomy.Buteventhelargestandmostapparentlyself-containedeconomies,includingtheUS,arenowsignificantlyaffectedbytheglobaleconomy.Globalinte
8、grationintrade,investment,andfactorflows,technology,andcommunicationhasbeentyingeconomiestogether.Whythenarethesechangescomingabout,andwhatexactlyarethey?Itisinpractice,easiertoidentifytheformerthaninterpretthelatter.Thereasonist
