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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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