GMS 724 Chapter Notes - Chapter 1-14: Foreign Direct Investment, Gross Domestic Product, Gross National Income

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 724
• Professor: Howard Lin

Document Summary

Lecture 1 ch 1 globalization and international business. > international business: consists of all commercial transactions including sales, investments, and transportation that take place between two or more countries. Increasingly, foreign countries are a source of both production and sales for domestic companies. > factors contributing to rapid growth of international business/globalization: increase in and application of technology. Increased demand due to rising productivity from recent advances in technology: contributors include population growth and economic growth, which translates to new product development. Innovations in transportation mean that more countries can compete for sales to a given market. International operations may reduce operating risk by smoothing sales and profits, preventing competitors from gaining advantage. Sometimes they are referred to as multinational corporations or companies (mncs) or transnational companies (tncs). > future of international business and globalization: further globalization is inevitable, forces working against further globalization and international business will slow down both trends.