ADMN417 FINAL EXAM NEW 2025 REVIEW – ALL CHAPTER
SUMMARIES international business management Athabasca University
Chapter Summaries:
Chapter Summary
LO1.1 Identify the types of companies active in international business.
Most international business is conducted by large multinational corporations (MNCs), which have great
economic muscle and do deals often worth billions of dollars.
Born global firms adopt a global perspective and conduct international business nearly from the start.
They tend to have innovative cultures, knowledge-based capabilities, and become international
competitors in less than three years.
Entrepreneurs and small firms benefit from the Internet and other technologies that help them
overcome the hurdles of high advertising and distribution costs.
LO1.2 Explain globalization and how it affects markets and production.
Globalization is the trend toward greater economic, cultural, political, and technological
interdependence among national institutions and economies.
The globalization of markets helps a company to (1) reduce costs by standardizing marketing activities,
(2) explore international markets if the home market is small or saturated, and (3) level income streams.
The globalization of production helps a company to (1) access low-cost labor and become more price
competitive, (2) access technical know-how, and (3) access natural resources nonexistent or too
expensive at home.
,LO1.3 Detail the forces that drive globalization.
One major force behind globalization is falling barriers to trade and investment.
Those helping to reduce such barriers include the World Trade Organization, the World Bank, the
International Monetary Fund, and regional trading groups.
Another force behind globalization is technological innovation. Specific innovations include email,
videoconferencing, firm intranets and extranets, and advancements in transportation technologies such
as RFID and GPS.
, LO1.4 Outline the debate about globalization’s impact on jobs and wages.
Globalization opponents say it (1) destroys developed-country jobs that are moved to developing
countries, (2) lowers wages, job security, and employee morale and loyalty in developed nations, (3)
exploits developing-nation workers in outsourced service jobs, and (4) reduces the bargaining power of
labor.
Globalization supporters say it (1) fuels efficiency and greater production that raises consumer income,
(2) promotes labor market flexibility that quickly shifts workers to where they are needed, (3)
outsources sorely needed jobs to developing nations that elevate living standards, and (4) actually might
strengthen labor rights.
LO1.5 Summarize the debate about income inequality.
Regarding inequality within nations, evidence suggests that a developing nation can boost incomes for
its poorest residents by integrating itself into the global economy.
In the debate about inequality between nations, studies find that a nation embracing world trade and
investment can grow faster than rich nations, whereas a sheltered economy becomes worse off.
Regarding global inequality, groups tend to agree that inequality has fallen in recent decades although
they differ about the extent of the drop.
LO1.6 Outline the debate about culture, sovereignty, and the environment.
Evidence suggests that the cultures of developing nations are thriving in an age of globalization and that
deeper elements of culture are not easily abandoned, as critics say.
In terms of national sovereignty, the case can be made that globalization has not undermined
democracy, but has helped it to spread worldwide and has aided progress on many global issues.
Regarding the environment, it seems globalization has not caused a “race to the bottom,” but instead
has urged firms to embrace sustainability as a precondition to fostering healthy future markets.
SUMMARIES international business management Athabasca University
Chapter Summaries:
Chapter Summary
LO1.1 Identify the types of companies active in international business.
Most international business is conducted by large multinational corporations (MNCs), which have great
economic muscle and do deals often worth billions of dollars.
Born global firms adopt a global perspective and conduct international business nearly from the start.
They tend to have innovative cultures, knowledge-based capabilities, and become international
competitors in less than three years.
Entrepreneurs and small firms benefit from the Internet and other technologies that help them
overcome the hurdles of high advertising and distribution costs.
LO1.2 Explain globalization and how it affects markets and production.
Globalization is the trend toward greater economic, cultural, political, and technological
interdependence among national institutions and economies.
The globalization of markets helps a company to (1) reduce costs by standardizing marketing activities,
(2) explore international markets if the home market is small or saturated, and (3) level income streams.
The globalization of production helps a company to (1) access low-cost labor and become more price
competitive, (2) access technical know-how, and (3) access natural resources nonexistent or too
expensive at home.
,LO1.3 Detail the forces that drive globalization.
One major force behind globalization is falling barriers to trade and investment.
Those helping to reduce such barriers include the World Trade Organization, the World Bank, the
International Monetary Fund, and regional trading groups.
Another force behind globalization is technological innovation. Specific innovations include email,
videoconferencing, firm intranets and extranets, and advancements in transportation technologies such
as RFID and GPS.
, LO1.4 Outline the debate about globalization’s impact on jobs and wages.
Globalization opponents say it (1) destroys developed-country jobs that are moved to developing
countries, (2) lowers wages, job security, and employee morale and loyalty in developed nations, (3)
exploits developing-nation workers in outsourced service jobs, and (4) reduces the bargaining power of
labor.
Globalization supporters say it (1) fuels efficiency and greater production that raises consumer income,
(2) promotes labor market flexibility that quickly shifts workers to where they are needed, (3)
outsources sorely needed jobs to developing nations that elevate living standards, and (4) actually might
strengthen labor rights.
LO1.5 Summarize the debate about income inequality.
Regarding inequality within nations, evidence suggests that a developing nation can boost incomes for
its poorest residents by integrating itself into the global economy.
In the debate about inequality between nations, studies find that a nation embracing world trade and
investment can grow faster than rich nations, whereas a sheltered economy becomes worse off.
Regarding global inequality, groups tend to agree that inequality has fallen in recent decades although
they differ about the extent of the drop.
LO1.6 Outline the debate about culture, sovereignty, and the environment.
Evidence suggests that the cultures of developing nations are thriving in an age of globalization and that
deeper elements of culture are not easily abandoned, as critics say.
In terms of national sovereignty, the case can be made that globalization has not undermined
democracy, but has helped it to spread worldwide and has aided progress on many global issues.
Regarding the environment, it seems globalization has not caused a “race to the bottom,” but instead
has urged firms to embrace sustainability as a precondition to fostering healthy future markets.
