Law on International Business

1. The Evolution of
International Business

2. EVOLUTION
 derived from the Greek root “evolution”
which means “unfolding” or “to roll out”.
 It comes from the combination of “e” (out)
and “volvere” (to roll/turn).
 refers to the process of gradual change,
growth, or development over time.

3. EVOLUTION OF
INTERNATIONAL BUSINESS
 refers to the step-by-step growth and transformation
of business beyond domestic boundaries
 refers to the step-by-step growth and
transformation of business beyond
domestic boundaries

4. International Business
International Business is the exchange of goods,
services, technology, capital, and knowledge across
national borders to achieve commercial objectives.

5. Early Trade (before 5th Century, 401 to 500 AD)
1
Business began
with barter trade or
the direct
exchange of goods.
The major trade
routes were the Silk
Road (China - Europe)
and the Spices Routes
in India-Middle East-
Europe.
2
Trade was mainly
in spices, silk, salt,
and metals.
3

6. Middle Ages
(5th-15th Century, 1401 to 1500 AD)
This age started
the growth of
merchant trading
guilds in Europe.
Emergence of
money economy
like coins, then
paper money.
Trade focused on
luxury goods like
silk, gems, and
spices.

7. Age of Exploration and Mercantilism
(16th Century to 18th Century)
Establishment of colonies
for raw materials.
Export: selling and sending goods or services produced in one country to another country.
Import: bringing goods or services from another country into your own country.
Birth of early multinational
trading companies (e.g.,
Dutch East India
Company).
2
Accumulating wealth by
exporting more than
importing.
3
1

8. Industrial Revolution (18th to 19th Century)
Factories created
mass production.
Increased demand for
raw materials and
wider markets.
Transportation
improvements like
steamships, railways,
and the telegraph.

9. Early 20th Century (1900-1945)
Expansion of international firms in manufacturing oil, automobiles,
and finances.

10. Post World War II Globalization (1945-1980s)
Growth of multinational
corporations like Coca-Cola and
Ford.
Rise of technology transfer across
borders.

11. Late 20th Century Global Integration (1980s-2000s)
The emergence of global supply and outsourcing.
Global Supply: a worldwide network of producing, distributing, and delivering goods and services
across countries.
Outsourcing: the practice of hiring external or foreign firms to perform business tasks or
services instead of handling them internally.
Expansion of free trade agreements to reduce trade barriers like tariffs.
Tariffs: taxes or duties imposed by a government on imported goods and services. An example
is under AFTA (ASEAN Free Trade Area), where the Philippines can export bananas to Thailand
with lower tariffs, making trade cheaper and faster.

12. 21st Century International Business (2000s-Present)
Digital Globalization: online platforms like Amazon and Alibaba.
Amazon: online retail.
Alibaba: wholesale and trade platform for businesses.
Shaping business strategies. Emergence of AI in transforming business
operation.

13. Summary
The International Business evolved from simple barter
trade – to colonial expansion – to industrial production – to
multinational corporations – to today’s era of digital
globalization and interconnected supply chain.

14. Thank You😊