BSB119 – GLOBAL BUSINESS
LECTURE 1: INTRODUCTION TO GLOBAL BUSINESS
1. Globalisation – nature and factors
2. Driving forces of Globalisation
3. Globalisation and limitations
4. Globalization: Prosperity or Impoverishment?
What is International Business?
o There are papers that are up to 20 pages long which try to define these two words.
o Basically, any firm that engages in international trade or investment
What is globalisation?
o Globalisation refers to the shift towards a more integrated and interdependent world
o The nature of globalisation: national economies are increasingly integrated and
interdependent – but diversity remains!!
o Barriers to cross-border trade and investment are declining; perceived distance is shrinking
due to advances in transportation and communication technology and national economies
are merging into an interdependent, integrated global economic system.
o Includes several facets including political, cultural, economic, ecological issues – business
tends to focus on the globalisation of markets and production
Is domestic business immune to the forces of globalisation?
o Businesses respond to and are the engine of globalisation – the multinational enterprise
Globalisation of production, markets and emergence of global institutions.
Many industries historically distinct and separate national markets are merging into
one huge global marketplace in which the tastes and preferences of consumers in
different nations are beginning to converge
Today's firm operates in an environment that offers more opportunities, but
is also more complex and competitive than that faced a generation ago
Tendency among many firms to source 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.
Improvements in transportation technology, including jet transport,
temperature controlled containerized shipping, and coordinated ship-rail-