2. • The exchange of Goods & Services, Resources, Knowledge, & Skills,
among individuals & businesses in two or more countries.
• Transaction that are carried out across national borders to satisfy the
objectives of individuals and organization
• All Commercial transactions that take place between two or more
countries.
1. Private & Government
2. Sales
3. Investments
4. Logistics
5. Transportation
What is International Business ?
3. • Large scale operations
• Integration of economies
• Dominated by developed countries and MNCs
• Benefits to participating countries
• Keen competition
• Special role of science and technology
• International restrictions
Features
4. Strategic Process
1. Strategic Formulation
2. Strategic Implementation
3. Strategic Evaluation and Control
Strategic Choices
5. • Political factors
• High foreign investments and high cost
• Exchange instability
• Entry requirements
• Tariffs, quota etc.
• Corruption and bureaucracy
• Technological policy
• Quality Management
Problems
6. • Faster growth
• Access to cheaper inputs
• Increased quality and efficiency
• New market opportunities
• Diversification
Advantages
7. • Increased costs
• Foreign regulations and standards
• Delays in payments
• Complex organizational structure
Disadvantages
8. 1. Expansion of technology
2. Business is becoming more global because
• Transportation is quicker
• Communications enable control from afar
• Transportation and communications costs are more conducive for
international operations
3. Liberalization of cross-border movements
• Lower Governmental barriers to the movement of goods, services,
and resources enable Companies to take better advantage of
international opportunities
Reason for recent growth in IB
9. Reason for recent growth in IB
General agreement on Tariff and trade
(GATT)
• An international organization formed to reduce or
eliminate tariff and other barrier to international
trade
• An international financial organization that lend
money to countries in conducting international
trade
International Monetary Fund (IMF)
10. Reason for recent growth in IB
World Bank
• An international financial organization that lend
money to underdeveloped and developing
countries for development
Economic Communities
• World Trade Organization (WTO)
• European Community (EC)
• North American Free Trade Agreement (NAFTA)
• Asian Free Trade Agreement (AFTA)
