World Trade Organization

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International Business Environment BE2501 – Summary
Chapter 1
Globalization – refers to the shift toward a more integrated and interdependent world economy. Globalization of markets – refers to the merging of historically distinct and separate national markets into one huge global marketplace.
Globalization of products – refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production (such as labor, energy, land and capital)
General Agreement on Tariffs and Trade (GATT)
World Trade Organization (WTO) – is primarily responsible for policing the world trading system and making sure nation-states adhere to the rules laid down in the trade treaties signed by WTO member states.
International Monetary Fund (IMF) and the World Bank (WB) were both created in 1944 by 44 nations that met at Bretton Woods, New Hampshire. The IMF was established to maintain order in the international monetary system; The WB was set up to promote economic development. United Nations (UN) – was established on October 24, 1945, by 51 countries committed to persevering peace through international cooperation and collective security.
International trade occurs when a firm exports goods or services to consumers in another country. Foreign Direct Investment (FDI) occurs when a firm invests resources in business activities outside its home country.
Stock of foreign direct investment – refers to the total cumulative value of foreign investments. Multinational enterprise (MNE) – is any business that has productive activities in two or more countries. International Business – is any firm that engages in international trade or investment.
Chapter 2
Political economy – the political, economic, and legal systems of a country are interdependent; they interact and influence each…...

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