INTB-501 | Ultimate International Business &
Globalization Master Study Guide (2025 Edition)
Globalization - Broadening set of interdependent relationships among people from different
parts of the world divided into nations. [interdependent relationship between different
countries]
International Business - All commercial transactions between two or more countries. Only exists
when funds move across boarders. (ex) I bought my plane ticket to Italy from American Airlines-
this was NOT considered international business because the funds went to the same country. If I
bought my ticket from a foreign country it would be considered international trade.
Two Types of International Business and Differences Between them - Public = has shareholders
Private = does not have shareholders
In what ways does international business influence domestic operations? - Physical
Societal
Competitive
(ex) banks- amount of public companies are changing
Fiat- biggest Italian car producer 10% owned by son 10% US stock and 80% Italy
Why engage in international business?
Why is it important to study? - Expand sales
Acquire Resources (better resources, services, products)
Minimize Risk (diversity among diff countries taking advantage of business cycle)
Important to study because = today global events affect almost all companies
everywhere.
,Reasons for Growth in International Business/Globalization - 1) Technology- increase and
expansion
2) Transportation- quicker and lower costs
3) Increased Global Competition
4) Communication- control from afar
5) Consumer Pressure
6) Liberal govt policies on trade
7) Development of institutions that support Int'l trade
Essay Modes of International Business - Importing & Exporting = (trade) merchandise is most
common but services are also traded. (ex) merch: Italy exports wine, the physical finished
product, to the US. (ex) service: tourism and transportation, turn key operations, licensing and
franchising (bud wiser gave peroni license to sell bud wiser in Italy (licensing)
Investments = factors of production can be a direct investment (control- joint ventures) and
portfolio investments (no control)
Two Types of Investments - Direct Investments (control) joint ventures- new activity started by 2
or more partners
Portfolio Investments (no control) stocks
Example of a French export would be a visit by a - **US citizen to Euro Disney in France
xxx French Citizen to Disneyland in the US
When one party allows another party the use of a trademark and assist that other party on a
regular basis the arrangement is known as a - Franchise
MNE - Multinational Enterprise is a global approach to markets and production
Types of Ownership - Propritorship = one owner
, Partnership = 2 or more owners
Cooperation
(all three of these could go global)
(ex) nestle chocolate brand is so globalized that you no longer associate it with one country
(switzerland)
Offshoring - transferring production abroad (seen as controversial)
Antiglobalists 3 thoughts on Globalization - 1) threats to national sovereignty
2) promotes growth that causes environmental stress
3) increase income unequally (skews income distribution)
Why is it important to understand cultural environments facing business? - It is important for
companies to unlearns and be sensitive to constantly changing environments.
Major Cultural Issues Occur in International Business when: - Employees:
1) have subconscious reactions
2) assume all societal groups are similar
3) can't adjust / accept foreign culture
4) insensitive to consumer preferences
(ex) we eat at 6 in US in Italy they eat later. US news is on at 6 but is not in Italy
Cultural Factors - Behaviour affecting business
Identification and Dynamics of Cultures
Cultural Awareness
Strategies for dealing with cultural differences
Cultural Awareness (Attire, Religion, Language) - Attire: Italians dress more formal than US
Globalization Master Study Guide (2025 Edition)
Globalization - Broadening set of interdependent relationships among people from different
parts of the world divided into nations. [interdependent relationship between different
countries]
International Business - All commercial transactions between two or more countries. Only exists
when funds move across boarders. (ex) I bought my plane ticket to Italy from American Airlines-
this was NOT considered international business because the funds went to the same country. If I
bought my ticket from a foreign country it would be considered international trade.
Two Types of International Business and Differences Between them - Public = has shareholders
Private = does not have shareholders
In what ways does international business influence domestic operations? - Physical
Societal
Competitive
(ex) banks- amount of public companies are changing
Fiat- biggest Italian car producer 10% owned by son 10% US stock and 80% Italy
Why engage in international business?
Why is it important to study? - Expand sales
Acquire Resources (better resources, services, products)
Minimize Risk (diversity among diff countries taking advantage of business cycle)
Important to study because = today global events affect almost all companies
everywhere.
,Reasons for Growth in International Business/Globalization - 1) Technology- increase and
expansion
2) Transportation- quicker and lower costs
3) Increased Global Competition
4) Communication- control from afar
5) Consumer Pressure
6) Liberal govt policies on trade
7) Development of institutions that support Int'l trade
Essay Modes of International Business - Importing & Exporting = (trade) merchandise is most
common but services are also traded. (ex) merch: Italy exports wine, the physical finished
product, to the US. (ex) service: tourism and transportation, turn key operations, licensing and
franchising (bud wiser gave peroni license to sell bud wiser in Italy (licensing)
Investments = factors of production can be a direct investment (control- joint ventures) and
portfolio investments (no control)
Two Types of Investments - Direct Investments (control) joint ventures- new activity started by 2
or more partners
Portfolio Investments (no control) stocks
Example of a French export would be a visit by a - **US citizen to Euro Disney in France
xxx French Citizen to Disneyland in the US
When one party allows another party the use of a trademark and assist that other party on a
regular basis the arrangement is known as a - Franchise
MNE - Multinational Enterprise is a global approach to markets and production
Types of Ownership - Propritorship = one owner
, Partnership = 2 or more owners
Cooperation
(all three of these could go global)
(ex) nestle chocolate brand is so globalized that you no longer associate it with one country
(switzerland)
Offshoring - transferring production abroad (seen as controversial)
Antiglobalists 3 thoughts on Globalization - 1) threats to national sovereignty
2) promotes growth that causes environmental stress
3) increase income unequally (skews income distribution)
Why is it important to understand cultural environments facing business? - It is important for
companies to unlearns and be sensitive to constantly changing environments.
Major Cultural Issues Occur in International Business when: - Employees:
1) have subconscious reactions
2) assume all societal groups are similar
3) can't adjust / accept foreign culture
4) insensitive to consumer preferences
(ex) we eat at 6 in US in Italy they eat later. US news is on at 6 but is not in Italy
Cultural Factors - Behaviour affecting business
Identification and Dynamics of Cultures
Cultural Awareness
Strategies for dealing with cultural differences
Cultural Awareness (Attire, Religion, Language) - Attire: Italians dress more formal than US
