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International Business

Published on Dec 01, 2015

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PRESENTATION OUTLINE

International Business

Chapter 9
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9.1 Importance of International Business

  • GOALS
  • Describe the nature, growth, and importance of international trade and investment.
  • Explain the reasons for the growth of international business.

The Scope of International Business

International business: business activities that occur between two or more countries

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Extent of international trade

  • Started in 1600, British East India Company
  • Page 223 Business Examples
  • American Companies-McDonald's, General Motors, IBM, Coca-Cola, Apple
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U.S. Trading Partners

  • World trading exceeds $12 trillion
  • Exports vs. Imports Page 223
  • Why?
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Trade, investment, and the economy

  • Foreign investment occurs when firms of one country build new plants and facilities or buy existing businesses in another country
  • Exceeded $340 billion
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The numbers

  • America sold over $1.8 trillion goods/services to foreign customers
  • 20% of all jobs depend on foreign trade
  • 5% of works are employed by foreign businesses working in the U.S.
  • Page 224

why is international trade important to the Us?

Reasons for Growth in

INTERNATIONAL BUSINESS

Profit

  • Lower cost of making goods
  • Sell at a higher price
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Factors that Help Firms Engage in

INTERNATIONAL BUSINESS

World trade organization WTO:

  • International organization that creates and enforces the rules governing trade among countries

Trading bloc:

  • Group of 2 or more countries that agree to remove all restrictions between them on the sales of goods/services
  • Keeps barriers on other countries
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European Union EU:

  • A trading block between 27 countries page 226
  • Euro created in 1999 to have 1 currency
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North American Free Trade Agreement NAFTA:

  • 1989-Canada
  • 1992-Added Mexico
  • Removed tariffs and other barriers to trading

International business

  • is regulated by 2 institutions
  • 1. International Monetary Fund (IMF)
  • 2. World Bank
  • Both help with loans
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Why has there been growth in international busines

Assignment:

Page 227 1-4
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