A hallmark of recent decades has been the very rapid growth of international trade. This week we will define globalization, survey some of its successes, and will review its challenges and criticisms. We will conclude with a case study of an emerging technology that may well greatly accelerate the rapid pace of globalization!

This module examines the varied environments in which international businesses must operate and succeed. We first examine the underpinning of international political and legal systems. Next, we examine the underpinning of international political and legal systems. International managers must understand how these systems work and their implications for conducting international business. Finally, we tackle the challenging topics of international business ethics, corporate social responsibility (CSR), and corruption. These topics are challenging because there are no bright guidelines for defining right from wrong, good from bad, or honest from corrupt in international business. Nonetheless, international managers must frequently make difficult ethical and moral decisions, even without clear guide lines. It is imperative that managers understand these topics and their implications for conducting international operations. If managers do not understand the fundamental rules of a country in which they operate, they won’t be successful there!

With this module we examine the many ways that nations build barriers to impede trade to protect their domestic industries and jobs. Then, ironically, we study the many foreign trade agreements and organizations that nations create to reduce and sometimes eliminate those same barriers. We then summarize various national trade laws, such as import and export restrictions imposed by individual countries. Next, we examine Free Trade Zones that countries establish to reduce trade barriers and promote cross-border transactions. Finally, we will focus on national intellectual property laws such as patents, copyrights, and trademarks which has become critically important as much international trade now includes an abundance of high-tech and entertainment products with valuable embedded IP.