BDNG3103 Introductory International Business_sMay19 (RS_MREP)[010-259]split[007-007]

Topic  What is

1 International
Business?

LEARNING OUTCOMES

By the end of this topic, you should be able to:
1. Define the term „globalisation‰;
2. Describe the scope of activities in international business;
3. Explain the role played by international business especially in the

economic development of a country, a particular region as well as
the world in general;
4. Explain important concepts which underline the activities of the
international firm; and
5. Discuss the reasons firms engage in international business and the
challenges the firms have to face.

 INTRODUCTION

In this topic, we will discuss the term „globalisation‰ and the scope of activities in
international business. We will also discuss the roles played by international
business especially in the economic development of a country, a particular region
as well as the world in general.

International business consists of business transactions between parties from more
than one country. For example, firms buy materials from one country, ship them
to another country for processing or assembly and then ship the finished products
to another country to be sold. Firms also build manufacturing plants in a foreign
country to take advantage of lower labour costs or borrow money from

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