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INTERNATIONAL BUSINESS
International Business
- the transfer of:
1. resources
2. goods
3. services
4. knowledge
5. skills
6. or information acros...
International Business
 International Transactions
 International Trade
 International Investment
 International Firm
...
International Trade Theories
1. Mercantilism
- Is the economic doctrine that government control of
foreign trade is of par...
International Trade Theories
2. Absolute Advantage
- Refers to the ability of a party (an individual, or firm,
or country)...
International Trade Theories
Example of Absolute Advantage:
Party B has the absolute advantage.
Party A can produce 5 wid...
International Trade Theories
3. Comparative Advantage
- Refers to the ability of a party to produce a particular
good or s...
International Trade Theories
Example of Comparative Advantage:
Maid has the comparative advantage.
John Maid
Earns $300/ho...
International Trade Theories
4. Factor Proportions Theory
- Trade theory holding that countries produce and
export those g...
International Trade Theories
5. Vernon’s Product Life-Cycle Theory
- Theory suggests that early in a product's life-cycle ...
International Trade Theories
5. Vernon’s Product Life-Cycle Theory
Five Stages:
• Introduction
• Growths
• Maturity
• Satu...
International Trade Theories
6. New Trade Theory
- A collection of economic models in international
trade which focuses on...
INTERNATIONAL BUSINESS
International Trade Patterns
Service Trade
- Encompasses the import and export of financial
services, information services...
International Trade Patterns
Trade Measurement
- Refers to all transactions in which the price of the
commodities or goods...
International Trade Patterns
Trade Balance
- The calculated exports minus imports of goods and
services.
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International business

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International business

  1. 1. INTERNATIONAL BUSINESS
  2. 2. International Business - the transfer of: 1. resources 2. goods 3. services 4. knowledge 5. skills 6. or information across national boundaries - all commercial transactions that take place between two or more regions, countries and nations: 1. private and governmental 2. sales 3. investments 4. logistics 5. transportation
  3. 3. International Business  International Transactions  International Trade  International Investment  International Firm  Multinational Enterprise (MNE) - often called as Multinational Company (MNC) or Transnational Company (TNC) Examples: 1. Philippine Airlines (PAL) 2. Philippine National Bank (PNB) 3. Convergys Corporation 4. Ayala Land, Inc. 5. STI Colleges 6. National Power Corporation (NAPOCOR) 7. Mercury Drug 8. Universal Robina Corporation 9. Gerry’s Grill
  4. 4. International Trade Theories 1. Mercantilism - Is the economic doctrine that government control of foreign trade is of paramount importance for ensuring the military security of the country.
  5. 5. International Trade Theories 2. Absolute Advantage - Refers to the ability of a party (an individual, or firm, or country) to produce more of a good or service than competitors, using the same amount of resources.
  6. 6. International Trade Theories Example of Absolute Advantage: Party B has the absolute advantage. Party A can produce 5 widgets per hour with 3 employees. Party B can produce 10 widgets per hour with 3 employees. Party Widgets per Hour Number of Employees A 5 3 B 10 3
  7. 7. International Trade Theories 3. Comparative Advantage - Refers to the ability of a party to produce a particular good or service at a lower marginal and opportunity cost over another.
  8. 8. International Trade Theories Example of Comparative Advantage: Maid has the comparative advantage. John Maid Earns $300/hour Works $25/hour 1 hour to clean 8 hours to clean Absolute advantage Comparative advantage He loses $300 Profit $100
  9. 9. International Trade Theories 4. Factor Proportions Theory - Trade theory holding that countries produce and export those goods that require resources (factors) that are abundant (and thus cheapest) and import those goods that require resources that are in short supply.
  10. 10. International Trade Theories 5. Vernon’s Product Life-Cycle Theory - Theory suggests that early in a product's life-cycle all the parts and labor associated with that product come from the area in which it was invented.
  11. 11. International Trade Theories 5. Vernon’s Product Life-Cycle Theory Five Stages: • Introduction • Growths • Maturity • Saturation • Decline
  12. 12. International Trade Theories 6. New Trade Theory - A collection of economic models in international trade which focuses on the role of increasing returns to scale and network effects, which were developed in the late 1970s and early 1980s.
  13. 13. INTERNATIONAL BUSINESS
  14. 14. International Trade Patterns Service Trade - Encompasses the import and export of financial services, information services, the provision of education and training, travel and tourism, healthcare, consulting and advisory services, and so on.
  15. 15. International Trade Patterns Trade Measurement - Refers to all transactions in which the price of the commodities or goods is based on measurement of quantity or quality.
  16. 16. International Trade Patterns Trade Balance - The calculated exports minus imports of goods and services.

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