ABSTRACT
This chapter provides you with key background information that supports the study of international business. The chapter defines international business and the MNC. Because we exist in a globalizing world, considerable attention has been devoted to the forces that drive globalization. These are key environmental issues that affect global business. Covid 19, supply chain disruptions, and geopolitical conflict mean that world trade and investments are growing rapidly but not always consistently. Nevertheless, it continues to make all economies more linked and creates both opportunities and threats for domestic and multinational companies. New competitors, strong and motivated, are coming from emerging markets in Asia, the Americas, and Eastern Europe. The increasing sophistication and lower cost of information technology fuel the development of global companies that can more easily manage worldwide operation. Multinational managers of the next generation will need skills not always considered necessary for domestic-only managers. Perhaps the most encompassing characteristic is the global mindset. Managers with a global mindset understand the rapidly changing business and economic environment. They can see the world as an integrated market yet appreciate and understand the wide array of differences in world cultures and social institutions.
