BUSI2025 Lecture Notes - Lecture 1: Multinational Corporation, International Business, International Trade
Document Summary
I(cid:374)ter(cid:374)atio(cid:374)al busi(cid:374)ess: (cid:862)all co(cid:373)(cid:373)ercial tra(cid:374)sactio(cid:374)s i(cid:374)(cid:448)ol(cid:448)i(cid:374)g t(cid:449)o or (cid:373)ore cou(cid:374)tries(cid:863) Multinational corporation (mnc) or (cid:373)ulti(cid:374)atio(cid:374)al e(cid:374)terprise (cid:894)mne(cid:895): (cid:862)a (cid:272)o(cid:373)pa(cid:374)y that has operatio(cid:374)s i(cid:374) (cid:373)ore tha(cid:374) o(cid:374)e (cid:272)ou(cid:374)try(cid:863) (cid:894)da(cid:374)iels et al, (cid:1006)(cid:1004)(cid:1005)4(cid:895) International sales: shares resources and capabilities across borders, owned and managed by nationals from different countries. International transactions involve converting money into different currencies. The shift toward a more integrated and interdependent world: a process rather than a fact, a trend or a structure, freedom is the central issue. Three components: the globalisation of consumption, the globalisation of markets, the globalisation of production. Globalisation is not a new phenomenon but the pace of integration accelerated in the latter 20th century! Market-seeking to expand sales: pursuing international sales increases the potential market and potential profits. Resource-seeking to acquire resources: may give companies lower costs, new and better products, additional operating knowledge.
