CHAPTER 1 : INTRODUCTION TO INTERNATIONAL BUSINESS

A foreign currency swap is simply an agreement between two parties to exchange one currency for another at a yet-to-be-determined future date but at a specified exchange ratio.

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The transformation of an MNE's products from raw materials to a finished good or service is called the international value chain.

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One of the key internal drivers for international business is technology.

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International business relates to any situation where the production or distribution of goods or services crosses country borders.

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Globalization can be defined only in terms of markets but not in terms of production.

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International transfers of resources, such as people, intellectual property, and contractual assets or liabilities, do not form a part of international business.

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The knowledge of both strategic management and entrepreneurship enhances one’s understanding of international business.

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International business would not be relevant to an organization if it only produced and sold its products in one country.

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Globalization is fueled largely by declining trade and investment barriers and new technologies, such as the Internet.

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Internal and external factors of globalization can be divided into market, environmental and competitive.

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