1. The document discusses key concepts in international business and strategy, including multinational enterprises, international trade, foreign direct investment, and major trade blocs and organizations. 2. It defines international business as transactions across national borders to satisfy needs, and discusses how world trade occurs through exports, imports, and foreign direct investment. 3. Major topics covered include the TRIAD trading blocs of North America, EU, and Japan; NAFTA; the WTO; and factors that influence national competitive advantage and strategic alliances.

1. REGIONAL
AND GLOBAL
STRATEGY
Econ. Christian Suárez
Molina, MAE 1

2. International business
The study of transactions taking place across
national borders for the purpose of satisfying
the needs of individuals and organizations
Multinational enterprises (MNEs)
A company headquartered in one country
but having operations in other countries
Econ. Christian Suárez
Molina, MAE 2

3. World Business: a brief overview
International Trade
 Exports and imports
 Foreign direct investment
Econ. Christian Suárez
Molina, MAE 3

4. TRIAD
 The three major trading and investment blocs
in the international arena :the United
States, the EU, and Japan
 NAFTA
North American Free Trade Agreement
 A regional free trade agreement between
Canada, the US and Mexico
Econ. Christian Suárez
Molina, MAE 4

5.  International Trade Regulation
Econ. Christian Suárez
Molina, MAE 5

6. Organization for Economic Cooperation and
Development (OECD)
 A group of 30 relatively wealthy member countries
that facilitates a forum for facilitates a forum for the
discussion of economic, social and governance issues
across the word.
World Trade Organization
(WTO)
 An international organization that deals with the rules
of trade among member countries
 General Agreement on Tarrifs and Trade
 (GATT)
 A major trade organization that has been established
to negotiate trade concessions among member
countries
Econ. Christian Suárez
Molina, MAE 6

7.  In the United States, SME’s are companies
with up to 500 employees.
 In the EU, SME’s have between 11 and 200
employees and sales of under US40 billion.
 In Japan, SME’s in industry have up to 300
employees, whereas those in wholesale and
retail have up to 150 and 50 employees,
respectively.
 Developing countries use the World Bank
benchmark of 11 to 150 employees and sales
under US$5 billion
Econ. Christian Suárez
Molina, MAE 7

8.  Strategic alliance : a business relationship in
which two or more companies work together
to achieve a collective advantage
 Factor Conditions: Land, labor, and capital
Econ. Christian Suárez
Molina, MAE 8

9. Structure
of firms
and
rivalry
Factor Demand
conditions conditions
Related and
supporting
industries
Econ. Christian Suárez
Molina, MAE 9

10. Strategic Management
Managerial actions that include strategy
formulation, strategy
implementation, evaluation, and control and
encompass a wide range of activities
, including environmental analysis of external
and internal conditions and evaluation of
organizational strengths and weaknesses.
Econ. Christian Suárez
Molina, MAE 10

11. 1. What is international business all about? In your answer
be sure to include a definition of the term.
2. What are the two primary ways in which world trade is
conducted ?
3. What does international trade consist of?
4. What is the difference between international business
and international trade?
5. Will foreign direct investment increase or decrease in
the current decade? Why?
6. How important are the triad areas in promoting
international commerce? Explain.
7. What role does the world trade organization play in the
international business arena? Is the WTO helpful to
international trade or is a hindrance? Why?
Econ. Christian Suárez
Molina, MAE 11

12. 8. Multinational enterprises do not formulate
worldwide strategies, but rather regional
strategies. What does this statement mean and
how does it help us better understand
international business?
9. How do the four determinants of national
competitive advantage help explain how
companies can maintain their economic
competitiveness? Be complete in your answer
10. What are two of the advantages associated with
using strategic alliances?
Econ. Christian Suárez
Molina, MAE 12

13.  Big oil gets bigger
 Wal Mart
Econ. Christian Suárez
Molina, MAE 13