06 foundation intlbus

Principles of Business, Marketing, and Principles of Business, Marketing, and FinanceFinanceLesson SixLesson Six

The Foundation of International BusinessThe Foundation of International Business

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International BusinessInternational Business

• All activities needed to create, ship, and sell goods and services across national borders

• Also referred to as global business, international trade, and foreign trade

• Importance of international business– Source of raw materials– Supplier of foreign products– New market and investment opportunities – Improved political relations

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History of International History of International BusinessBusiness

• Roman Empire-more than 15,000 years ago dominated international business for more than 600 years

• Eleventh Century– Renewed interest in global commercialism– 1500-1900: several European countries established

colonies in Africa, Asia, North America, and South America

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International Business International Business BasicsBasics

• Trade activities

-viewed from the side of the buyer and the seller

• Imports

-products bought from businesses in other countries

• Exports -products sold in other

countries

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Four Major Categories of the Four Major Categories of the International Business International Business

EnvironmentEnvironment

• Geographic conditions• Cultural and social factors• Political and legal factors• Economic conditions

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Trade BarriersTrade Barriers

• Attempts to protect domestic business– Quota-limit the amount

of trade– Tariff-tax on imports– Embargo-refuse trade

with another country usually for political reasons

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Helpful Knowledge for Helpful Knowledge for International BusinessInternational Business

• History

• Geography

• Foreign Language

• Culture

• Study Skills

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Advantage of International Advantage of International BusinessBusiness

• Consumer-has more choices

• Citizen-has increased awareness of the world

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