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Though global trade has existed for centuries, today the business world is changing and becoming more international as a result of globalization.
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To define business and international business
To explain the historical origins of international business
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To identify the major factors that influence trade
To explain levels of participation in international trade
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International trade affects most companies and customers in the United States and around the world.
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businessany activity that seeks profit by providing goods or services to others
internationalbusiness
any activity involving business operations across national borders
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domesticcompany
a company that conducts business in only one country, which is known as the home country
internationalcompany
a company that conducts business across national borders
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globalizationthe increasing integration of the world economy
globaldependence
the concept that all countries depend on each other for trade
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Understanding International Business
Everyone is affected by international business.
Understanding international trade will help you prepare to work in business today.
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Business and International Business
Business can be selling lemonade at a homemade stand or a corporation expanding into international markets.
business
any activity that seeks profit by providing goods or services to others
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Business and International Business
Another term for international business is global business.
international business
any activity involving business operations across national borders
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Business and International Business
BusinessTangible Intangible
Goods Services
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Domestic and International Companies
A family-owned diner in your neighborhood, it is a domestic company.
domestic company
a company that conducts business in only one country, which is known as the home country
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Domestic and International Companies
An international company contributes to the trend of globalization.
international company
a company that conducts business across national borders
globalization
the increasing integration of the world economy
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Domestic and International Companies
Relate Can you name a service that you or your family could use anywhere in the world?
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Home and Host Countries
A home country is the country in which the selling firm is located.
If a representative travels to another country to market or sell products, that country is the host country.
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The History of Global Business
Trade took place between China, India, and Japan as many as 15,000 years ago.
During the 11th century, England, France, Spain, and Portugal all used ships to move products between countries.
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The History of Global Business
1600 1700 1800 1900 2000s
1599: The British East India Company conducts trade through Asia.
1600-1776: Merchants in colonial America conduct trade and export agricultural products and other goods to Britain and European countries.
1776: British investors try to establish companies in the newly independent United States
1800s: Multinational companies such as Colt’s Manufacturing Company and Singer’s sewing machine company begin to appear.
1920: More than 37 U.S. companies operate production facilities in two or more nations. Every car bought in Japan is made by a U.S. company.
2000s: Americans sell goods and
services to other countries, and
Americans purchase goods and services
from other countries.
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The History of Global Business
Question What were two multinational companies in the United States during the 1800s?
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Global Trendsetters in Switzerland
Meeting and Greeting Shake hands firmly with people you meet, and again upon leaving.
Business Etiquette Give your business card to associates you meet. Be punctual.
Business Dress Men wear suits and ties, and women wear suits or dresses.
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The Global Business Environment
Trade relations between companies and countries are affected by three factors.
Cultural and Social
Political and Legal
Economic
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The Global Business Environment
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Cultural and Social Factors
Cultural and Social Factors
Changes in a country’s education system
Changes in a country’s economic philosophy
Religious influences
Proper business protocols
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Political and Legal Factors
Political and Legal Factors
Wars and international conflicts
Elections
New governments
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Economic Factors
Economic Factors
Recession
Inflation
Economic growth or decline
Exchange rates
Natural disasters
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International Business Management
Forms of business ownership and the legal requirements for operating businesses vary in different countries.
The things that motivate employees vary around the world.
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Marketing and International Trade
The four Ps of marketing are vital elements for successful marketing in international business.
Product
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Price
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Place
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Promotion
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Accounting and Finance
Effective businesspeople understand the importance of financial issues for international trade.
Accounting and finance are the major elements of money management in international trade.
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Human Resource Management and Careers
The human resources department is responsible for recruiting, hiring, and training people.
Gain additional training and learn how to do business across international borders.
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Trade Relations
The relationships and ties between companies around the world have created global dependence.
global dependence
the concept that all countries depend on each other for trade
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Trade Relations
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Trade Relations
Participants inInternational Trade
Individual Consumers States and Provinces
Companies Countries
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Volcanic Trade Region The Pacific Rim is also called the “ring of fire,” due to the many volcanoes located along the edge of the Pacific tectonic plate in the north Pacific Ocean.
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1. What is international business?
International business is any activity involving business operations across national borders.
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1.1
2. When did global trade first begin?
International trade began as much as 15,000 years ago.
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1.1
3. What are three factors that influence trade relations?
cultural and social; political and legal; and economic
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