Explain the concept of globalisation and its implications for New Zealand and international organisations

The paper of international business will take you across the globe to study and explore the

international environment in which business is conducted today. We are increasingly living

in an interconnected world, and it is essential for us to know what is happening outside our

frontiers and participate in the world markets. This is an introductory course in international

business aimed to expose you to an understanding of business and management from an

international perspective. However, being a 200 level course within the Business Studies

framework, I expect you to be well prepared and to participate during class.

International Business is considered to be any business activity involving a cross border

commercial transaction. Examples of such transactions include buying raw materials or

inputs in one country and shipping them to another for processing or assembly; shipping

finished products from one country to another for retail sale; building a plant in a foreign

country to capitalise on lower labour costs there; or borrowing money from a bank in one

country to finance operations in another. When you pay for the tuition fees for your study in a

New Zealand tertiary institution as an international student, you are also engaged in an

international business transaction. The parties involved in international business transactions

may be private individuals, individual companies, and groups of companies, non-profit

organisations, or government agencies.

Countries are increasingly part of an integrated international or global economy. The

effective performance of business in international markets is vital to the economic well being

of nations. The challenge lies not only in finance, production, distribution and marketing of

products and services, but also in the effective management of the firm in the face of the most

rapid political, economic and technical change the world has ever faced in its entire history.

The last two decades have seen a golden revolution resulting in exciting opportunities created

by new communications technology, deregulation and New Zealand’s greater participation in

world commercial and political events. In this era of change and challenge, it is vital for any

businessperson, manager, politician and civil servant to gain a sound understanding of the

practical issues facing New Zealand firms and industries operating in this environment.

This needs to be considered within the context of a sound conceptual framework.

Accordingly, this course will review international business in an historical context and

include an outline of the theoretical perspectives used to explain its development.

Management processes, functions and activities as they relate to international business are

then considered in the New Zealand and global contexts.

The Paper

Prescription

 A study of business and management from an international perspective

 A introduction to the conduct of business in the global environment utilising different

forms of enterprise including e-business, direct trade relations and foreign direct

investment in the context of rapid economic change

 These are examined in the context of regionalism and globalism

Learning Outcomes

On successful completion of the paper you should be able to:

 Explain the concept of globalisation and its implications for New Zealand and

international organisations

 Analyse the challenges for businesses operating in an international environment,

particularly in cultural, political, economic and legal terms.

 Demonstrate an understanding of the theories and practices regarding international

trade and investment

 Evaluate the strategic and operational environments of international firms with

reference to issues such as organisational structure, marketing, and human resource

management.

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