ch 01 international business

7/30/2019 Ch 01 International Business

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International Business.

Prof. Dr.Madhavi Pandya.


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BLUE BEAUTY

www.youtube.com/watch?v=SK6W-

nTjHfk


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Unit 1Impact of

International Business
http://www.iclipart.com/search.php?keys=161965&id=104_10_3_17


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http://www.iclipart.com/search.php?keys=161965&id=104_10_3_17


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Chapters .

Ch.1.International Business Imperative

Ch.2.Culture and International Business

Ch.3.Trade and International Policies.

Ch.4.Politics and Laws.


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Chapter 1.

International Business Imperative

(Importance of International Business )

(Essential of International Business )


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Learning Objectives To understand the history and impact of

international business. To learn the definition of international

business.

To recognize the growth of global linkages

today. To understand the U.S. position in world

trade and the impact internationalbusiness has on the United States.

To appreciate the opportunities andchallenges offered by internationalbusiness.


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Need for International Business

More and more firms around the worldare going global, including:

Manufacturing firms

Service companies (i.e. banks,insurance, consulting firms)

Art, film, and musiccompanies


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International business:

causes the flow of ideas, services, and capital

across the world offers new choices to consumers

permits the acquisition of a wider variety ofproducts across globe.

facilitates the mobility of labor, capital, andtechnology

provides challenging employment

opportunities

reallocates resources, makes preferentialchoices, and shifts activities to a global level


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What is international Business ?

International businesses consistsof transactions that are devised

and carried out across nationalborders to satisfy the objectivesof individuals, companies, and

organizations vision and missionswith the strategic business plans.


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Types of International Business

Export-import trade

Foreign directinvestment

Licensing

Franchising

Management contracts


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International Business Questions?

How will an idea, goods, or service fitinto the international market?

Should trade or investment be usedto enter a foreign market?

Should supplies be obtaineddomestically or abroad?

What product adjustments are

necessary to be responsive to localconditions?

What are the threats from globalcompetitors, and how can these

threats be counteracted?


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Internationalization started with

http://www.youtube.com/watch?v=Bm89q0

7lRlU
http://www.youtube.com/watch?v=Bm89q07lRlUhttp://www.youtube.com/watch?v=Bm89q07lRlUhttp://www.youtube.com/watch?v=Bm89q07lRlUhttp://www.youtube.com/watch?v=Bm89q07lRlU


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http://www.youtube.com/watch?v=Bm89q07lRlU

http://www.youtube.com/watch?v=YLCLMT0LCyY

http://www.youtube.com/watch?v=LFbXqSoXznU&feature=related
http://www.youtube.com/watch?v=Bm89q07lRlUhttp://www.youtube.com/watch?v=YLCLMT0LCyYhttp://www.youtube.com/watch?v=LFbXqSoXznU&feature=relatedhttp://www.youtube.com/watch?v=LFbXqSoXznU&feature=relatedhttp://www.youtube.com/watch?v=YLCLMT0LCyYhttp://www.youtube.com/watch?v=Bm89q07lRlU


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International Business and the Roman Empire

Pax Romana , or Roman Peace ensured thatmerchants were able to travel safely andrapidly.

Common currency simplified businesstransactions.

Rome developed a systematic law, centralmarket locations, and an effectivecommunication system; all of which enabled

international business to flourish in the RomanEmpire.

The growth of the Roman Empire occurredmainly through the linkages of business.


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The decline of the Roman Empire can be

attributed in part to:

Infighting and increasing decadence(decade)

The Pax Romana (Rome peace) being no

longer enforced

The decline of use and acceptance of thecommon coinage

The declining levels of communication

As a result, former Roman allies

cooperated with invaders.


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United States: A Global Leader

The United States has developed a worldleadership position due to:

Its use of market-based transactions in

the Western world a broad flow of ideas, goods, and

services across national borders

an encouragement of internationalcommunication and transportation

Pax Americana, an American sponsored

and enforced peace.


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The Smoot-Hawley Act

The the 1930s, the U.S. passed theSmoot-Hawley Act, which raisedimport duties to reduce the volume ofgoods coming into the U.S.

The act was passed in the hope that itwould restore domestic employment.

The result was a worldwide depressionand the collapseof the world financialsystem.


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Recent Changes in International Business

Total world trade declineddramatically after 2000, but is againon the rise.

The rate of globalization isaccelerating.

Regionalization is taking place,

resulting in trading blocs.

The participation of countries inworld trade is shifting.


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Impact of International Business on the USA

U.S. international business outflows areimportant on the macroeconomic level in terms ofbalancing the trade account but lack of exportsgrowth has resulted in trade deficits. we saw the

diagram yesterday.On the microeconomic level, participation ininternational business can help firms achieveeconomies of scale that cannot be achieved in

domestic markets Each of Us setting our house correct and

repositioning ourselves locally and globally.


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Globalization

Because of globalization, for the firsttime in history, the availability ofinternational products and servicescan be accessed by individuals inmany countries, from diverseeconomic backgrounds.

ch 01 international business

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