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International Business Environment

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  • 1. International Business Environment
  • 2. 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 appreciate the opportunities and challenges offered by international business.
  • 3. Need for International Business
    • More and more firms around the world are going global, including:
      • Manufacturing firms
      • Service companies (i.e. banks, insurance, consulting firms)
      • Art, film, and music companies
  • 4. Need for International Business
    • International business:
      • causes the flow of ideas, services, and capital across the world
      • offers consumers new choices
      • permits the acquisition of a wider variety of products
      • facilitates the mobility of labor, capital, and technology
      • provides challenging employment opportunities
      • reallocates resources, makes preferential choices, and shifts activities to a global level
  • 5. What is International Business?
    • International business consists of transactions that are devised and carried out across national borders to satisfy the objectives of individuals, companies, and organizations.
  • 6. International Business Questions
    • How will an idea, good, or service fit into the international market?
    • Should trade or investment be used to enter a foreign market?
    • Should supplies be obtained domestically or abroad?
    • What product adjustments are necessary to be responsive to local conditions?
    • What are the threats from global competitors, and how can these threats be counteracted?
  • 7. Global Links Today
    • International business has created a network of global links that bind countries, institutions, and individuals with trade, financial markets, technology, and living standards.
      • For example, a reduction in coffee production in Brazil would affect individuals and economies worldwide.
  • 8. Recent Changes in International Business
    • Total world trade declined dramatically after 2000, but is again on the rise.
    • The rate of globalization is accelerating.
    • Regionalization is taking place, resulting in trading blocs.
    • The participation of countries in world trade is shifting.
  • 9. The Composition of Trade
    • Between the 1960’s and the 1990’s the importance of manufactured goods increased while the role of primary commodities (i.e. rubber or mining) had decreased.
    • More recently, there has been a shift of manufacturing to countries with emerging economies.
    • There has been an increase in the area of services trade in recent years.
  • 10. Globalization
    • Because of globalization , for the first time in history, the availability of international products and services can be accessed by individuals in many countries, from diverse economic backgrounds.
  • 11. The Globalization Debate
    • Antiglobalization Protest
    • Globalization, Jobs and Debate
    • Globalization, Labour Policies and the Environment
    • Globalization and National Sovereignty
    • Globalization and the National Sovereignty