Mgcr 382- international business - lecture 13- why do we study ib strategy and operations. Every mnc (multinational corporation) deals with three main components: merchandise exports and imports, service exports and imports. Geographic distance: things having to do with geography, natural environment and transportation. These factors would affect its transportation, communication and coordination costs. Things having to with the economic development and consumption levels. Possible indicators- gdp per capita, gdp growth, human development index, internet penetration. Widening set of interdependence relationships among people, firms and countries. Transportation costs have dramatically reduced over time (box transportation) There is a communication revolution (cheap and efficient long distance calls) The neo-liberal trade regime revolution has lead to a promotion of international trade. Evidence against a flat world (wrong myths): globalization isn"t new its been occurring from a long period of time.