International businessLesson 9 of 9 in the course Competing in the Global Marketplace

Global Competition: Market Motives, China and India, AI, and Sustainability

5 flashcards · 4 quiz questions · 5 match pairs · 5 fill-in sentences · English

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Summary

This lesson introduces two major forces behind the growth of world trade: businesses seeking larger markets and businesses seeking resources. Understanding these motivations helps explain why companies operate across national borders.

A company may look beyond its home country when its domestic market cannot generate enough demand to support growth or large-scale production. Large-scale manufacturing often requires a large customer base: higher production volumes can help a business spread costs across more units and compete on price.

All flashcards

What is market expansion?
Seeking customers beyond a company’s domestic market, often when home-market demand limits growth.
What is resource acquisition in international business?
Obtaining operational resources such as labor, materials, technology, expertise, or capital from global locations.
How has foreign investment supported China’s export growth?
It has helped expand manufacturing capacity, in part by funding operations attracted by comparatively low labor costs.
What factors contribute to national AI readiness?
Infrastructure, investment conditions, and computing capacity, along with the capabilities of businesses and workers.
What is corporate social responsibility (CSR)?
Company support for social and environmental issues through contributions, employee time, or other actions.

Quiz questions

  1. What role has foreign investment played in China’s export growth?Answer: It has expanded manufacturing capacity, partly through operations attracted by lower labor costs.
  2. Which conditions help determine a country’s readiness to support AI?Answer: Infrastructure, investment conditions, and computing capacity.
  3. How many Sustainable Development Goals did UN member nations adopt in 2015 as part of the 2030 Agenda?Answer: Seventeen goals.
  4. Why do sustainability commitments often require sustained engagement by companies?Answer: Meaningful outcomes usually require continued work linked to decisions and accountability.

Based on Introduction to Business 2e by Lawrence J. Gitman, Carl McDaniel, Amit Shah, Monique Reece, Linda Koffel, Bethann Talsma, James C. Hyatt (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.

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