BUS 200 Lecture Notes - Lecture 5: Cash Flow, Local Economic Development, Corporate Tax
Foundations of globalization and international trade: globalization: process in which the world economy is becoming a single independent system. International business: process of buyer, selling and trading goods, services, capital, information, and ideas across boarders. Globalization and ib take place through the process of imports and exports: export: the sale of domestically produced goods, services, capital, labour, etc. to foreign markets. Import: the purchasing of goods, services, capital, labour, etc. from foreign markets. Trade between countries: balance of trade: the difference in value between total exports and total imports, trade surplus: exports > imports, trade deficit: imports > exports. Socio-cultural: language, shopping habits, beliefs, values, lifestyles, demographics. Factors that contribute to rapid growth of international business: saturation of domestic markets, opportunities in foreign markets, availability of low cost labour, competitive reasons. Improve profits: short-term security, less vulnerable to periodic fluctuations and downturns. Increase innovation: exclusivity, economies of sale, competitive strike, government incentives.