This note describes the historical, present day, and projected future of changes in the global business environment. It is organized into four sections. The first discusses how economic performance is measured and presents comparative figures for a sample of countries. The second reviews why firms trade and invest across borders and why governments generally encourage such activity. The third section discusses global economic trends. The fourth presents several projections for how the global economy will evolve in the next few decades. This note can be complemented by the following mini-cases also available from WDI Publishing: Going Global (A) General Motors; Going Global (B) eBay; Going Global (C) Infosys; Going Global (D) Apollo Hospitals Group; Going Global (E) Embraer; Going Global (F) Haier Appliances; Going Global (G) MTV India.
Note on the Global Business Environment
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After reading and discussing the material, students should:
- Explain how the global economy has transformed over the past 20 years.
- Understand how to measure a country's economic performance using Gross Domestic Product (GDP).