International businessLesson 1 of 5 in the course International Management

Global Trade, Foreign Investment, and International E-Commerce

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

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Summary

International management matters because companies increasingly operate in a connected world rather than only in their home markets. This lesson explains how globalization is shaped by trade agreements and foreign direct investment (FDI), and why businesses need to understand these forces to compete internationally.

Globalization is the growing interconnectedness of countries, including through international trade, investment, and business activity. As trade barriers decline, companies can more easily produce, sell, and compete across national borders. This creates opportunities to reach new customers, but also exposes domestic firms to more competition.

All flashcards

What is globalization?
The growing interconnectedness of countries through trade, investment, and business activity.
What is the WTO's role in international trade?
It provides a framework for trade cooperation, negotiations, monitoring agreements, and addressing disputes.
What is foreign direct investment (FDI)?
A cross-border investment involving an ownership position in a company in another country.
What is e-commerce?
The buying and selling of products using the Internet.
What is consumer-to-consumer (C2C) e-commerce?
Online commerce in which one consumer sells to another consumer.

Quiz questions

  1. What is a tariff?Answer: A tax imposed on an imported product, often raising its price.
  2. Which situation is an example of foreign direct investment?Answer: A company acquires an ownership position in a company located abroad.
  3. Which activity is an example of e-commerce?Answer: Buying and selling products using the Internet.
  4. How can Internet access support international business?Answer: It can help firms reach customers and build relationships across markets.
  5. Which transaction is business-to-business (B2B) e-commerce?Answer: One company sells products to another company online.

Based on Principles of Management by David S. Bright, Anastasia H. Cortes, Eva Hartmann, K. Praveen Parboteeah, Jon L. Pierce, Monique Reece, Amit Shah, Siri Terjesen, Joseph Weiss, Margaret A. White, Donald G. Gardner, Jason Lambert et al. (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.

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