Ib

Front 1

Performance of trade and investment activities by firms across national borders

Back 1

International Business

Front 2

(typically short-term) is the passive ownership of foreign securities such as stocks and bonds for the purpose of generating financial returns.

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International Portfolio investment

Front 3

(typically long-term) is an internationalization strategy in which the firm establishes a physical presence abroad through acquisition of productive assets such as capital, technology, labor, land, plant, and equipment.

Back 3

Foreign direct investment (FDI)

Front 4

The rapid integration of world economies is fueled by factors such as

Back 4

the decline of trade barriers, e.g. tariffs, liberalization of markets, privatization and the economic vitality of emerging markets.

Front 5

The exponential growth of cross-border trade relative to world GDP is due in part to

Back 5

advanced economies such as Canada and Japan sourcing to low-cost locations, e.g. China and Mexico.

Front 6

Companies conduct value-adding activities on a

Back 6

global scale, i.e. organize, source, manufacture, market, etc.

Front 7

Firm’s international expansion is made more compelling and easier due to

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market and product globalization- for firms small and large.

Front 8

A “level playing field” has made cross-border activities appealing to

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all types of firms- large and small; manufacturing and service sectors (e.g. banking, transportation, engineering and design, advertising, and retailing).

Front 9

All value-adding activities including sourcing, manufacturing, and marketing, can be performed in

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international locations

Front 10

The subject of cross-border trade can be

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products, services, capital, technology, know how, and labor

Front 11

Firms internationalize through

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exporting, foreign direct investment, licensing, franchising, and collaborative ventures

Front 12

Ongoing economic integration and growing interdependency of countries worldwide.

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Globalization of Markets

Front 13

Integration is central to globalization, which has resulted in

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the widespread diffusion of products, technology, and knowledge worldwide, regardless of where they originate.

Front 14

Greater integration and interdependency of national economies;

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leading to freer movement of goods, services, capital, and knowledge

Front 15

Exchange of products and services across national borders; typically through exporting and importing.

Back 15

International Trade

Front 16

Sale of products or services to customers located abroad, from a base in the home country or a third country.

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Exporting

Front 17

Procurement of products or services from suppliers located abroad for consumption in the home country or a third country.

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Importing or Global Structuring

Front 18

Transfer of assets to another country or the acquisition of assets in that country.

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International Investment

Front 19

Large, resourceful companies with substantial international operations are able to leverage FDI to:

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Manufacture/assemble products in low-cost labor countries, i.e. India, Russia, Brazil, China, and Mexico;
Invest in western markets, even though they may originate from emerging economies themselves.

Front 20

Australia, Canada, Japan, the United States, and most countries in Western Europe.

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Developed economies

Front 21

Parts of Africa, Asia, and Latin America. Of particular significance is the growth of FDI into developing economies despite widespread poverty and less investment capital than advanced economies.

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Developing economies

Front 22

are the most active cross-border services.

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Bankind and Financial Services