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c hapter 1. an overview of international business. Chapter Objectives. Discuss the meaning of international business Explain the importance of understanding international business Identify and describe the basic forms of international business activities Discuss the causes of globalization

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c hapter 1

chapter 1

an overview of international business

chapter objectives
Chapter Objectives
  • Discuss the meaning of international business
  • Explain the importance of understanding international business
  • Identify and describe the basic forms of international business activities
  • Discuss the causes of globalization
  • Comprehend the growing role of emerging markets in the global economy

1-2

the business of the olympics1
The Business of the Olympics
  • Intense reflection of international business
  • Government of games by IOC
  • Competition for hosting
  • Revenue sources for the Olympics
    • Broadcast rights
    • Corporate sponsorships

1-4

what is international business
What Is International Business?
  • Business transactions between parties from more than one country
  • Parties may include
    • Private individuals
    • Individual companies
    • Groups of companies
    • Governmental agencies

1-5

how does international business differ from domestic
How Does International BusinessDiffer from Domestic?
  • Currency conversion
  • Legal systems
  • Culture
  • Availability of resources

1-6

why study international business
Why Study International Business?
  • Large organizations
  • Foreign-owned subsidiaries
  • Small businesses
  • Competitors
  • Business techniques and tools
  • Cultural literacy

1-7

international business activities
International Business Activities
  • Exporting and Importing
  • International Investments
  • Licensing, Franchising, and Management Contracts

1-8

exporting and importing
Exporting and Importing
  • Exporting: selling of products made in one’s own country for use or resale in other countries
  • Importing: buying of products made in other countries for use or resale in one’s own country

1-9

visible and invisible trade
Visible and Invisible Trade
  • Trade in Goods
    • Merchandise exports and imports
    • Visible trade
  • Trade in Services
    • Service exports and imports
    • Invisible trade

1-11

international investments
International Investments
  • Capital supplied by residents of one country to residents of another
  • Two categories:
    • Foreign direct investments
    • Portfolio investments

1-13

other forms of international business activity
Other Forms of International Business Activity

Management

contracts

Franchising

Licensing

1-14

variations of organizations
Variations of Organizations

Multinational Corporation

Multinational Enterprise

Multinational Organization

1-15

multinational corporations mncs
Multinational Corporations (MNCs)
  • Engage in foreign direct investment
  • Own and control foreign assets
  • Buy resources in multiple countries
  • Create goods and services in multiple countries
  • Sell goods and services in multiple countries

1-16

table 1 1 the largest mncs
ExxonMobil

Wal-Mart

Royal Dutch Shell

BP

General Motors

Chevron

DaimlerChrysler

Toyota Motor

Ford Motor

ConocoPhillips

Table 1.1 The Largest MNCs

1-17

motives for globalization
Motives for Globalization
  • To leverage core competencies
  • To acquire resources and supplies
  • To seek new markets
  • To better compete with rivals

1-18

environmental change and globalization
Environmental Change and Globalization

Changes in

Political

Environments

Technological

Changes

1-19

globalization and emerging markets
Argentina

Brazil

China

India

Indonesia

Mexico

Poland

South Africa

South Korea

Turkey

Globalization and Emerging Markets

1-22

framework of book
Framework of Book
  • The World’s Marketplaces
  • International Environment
  • Managing International Business
  • Managing International Business Operations

1-23