Griffin & Pustay
COPYRIGHT © 2015 PEARSON EDUCATION, INC. Chapter 1-1
International Business, 8th Edition
COPYRIGHT © 2015 PEARSON EDUCATION, INC.
Learning 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
Chapter 1-2
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What Is International Business?
International business consists of business transactions between parties from more than one country
Chapter 1-3
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Why Study International Business?
Provides the knowledge and skills that are essential for your career in today's business environment
Helps you make better career assessments Compete successfully with peers and
future competitors Stay abreast of the latest business
techniques and tools Obtain cultural literacy
Chapter 1-4
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International Business Activities
Chapter 1- 5
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International Business Activities: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.
Trade in goods: tangible products
Trade in services: intangible products
Chapter 1-6
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International Business Activities
Chapter 1-7
International Business Activities:International Investments
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Foreign Direct Investments
(FDI)
Foreign Portfolio Investments
(FPI)
Chapter 1-8
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International Business Activities:Other Forms
International licensingIntellectual Property
International franchisingThe Franchisor The Franchisee
International management contractManagement Services
Chapter 1-9
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International Business Activities:An International Business
Multinational Corporation (MNC) Multinational Enterprise (MNE) Multinational Organization (MNO)
Chapter 1-10
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International Business Activities
Chapter 1-11
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Contemporary Causes of Globalization
What is Globalization? Manifestation of globalizationIntensification of the role of international trade
Growing importance of FDI
Causes of Globalization Strategic ImperativesThe Environmental Causes of Globalization
Globalization and Emerging Markets
Chapter 1-12
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Contemporary Causes of Globalization
Chapter 1-13
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Contemporary Causes of Globalization
Chapter 1-14
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Contemporary Causes of Globalization:Strategic Imperatives
Leveraging a firm’s core competencies Acquiring resources at low cost Expanding into new markets Competing with industry rivals
Chapter 1-15
Contemporary Causes of Globalization:Environmental Causes
Changes in the Political EnvironmentReduction of trade and investment barriersThe collapse of European CommunismThe ideological and policy changes
undertaken by China and India
Changes in the Technological EnvironmentAdvances in TransportationImprovements in Information ProcessingChanges in Communications Technology
COPYRIGHT © 2015 PEARSON EDUCATION, INC. Chapter 1-16
COPYRIGHT © 2015 PEARSON EDUCATION, INC.
Contemporary Causes of Globalization:Globalization and Emerging Markets
Chapter 1-17
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Contemporary Causes of Globalization
Chapter 1- 18
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Contemporary Causes of Globalization
Chapter 1- 19
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Review Questions
What is international business? How does it differ from domestic business?
Why is it important for you to study international business?
What are the basic forms of international business activity?
How do merchandise exports and imports differ from service exports and imports?
What is portfolio investment? What are the basic reasons for the recent
growth of international business activity? Chapter 1-20
COPYRIGHT © 2015 PEARSON EDUCATION, INC. Chapter 1-21