Exam 1: Introduction to International Business

The current globalisation wave has been driven by technological change and declining barriers to trade in goods, ideas and services.

The growth of GVCs has brought changes to both the structure of trade and the governance of cross-border transactions.

Traditional trade, where a country produces a product or service that is exported to overseas consumers as a final good, now represents only around 30 per cent of all trade.

Globalisation describes the shift towards:

Technology could be considered as the application of knowledge which redefines the boundaries of global business.

A global value chain shows how an international business organises the transformation of goods and services from raw materials to finished goods.

The globalisation is bringing about homogenization of national cultures and values.

The growth of non-equity modes of internationalization indicates that:

The international business environment is mostly characterised by:

Outsourcing is only possible for intermediate manufactured products.