Principles of Business, Marketing, and Finance Lesson Six The Foundation of International Business Copyright © Texas Education Agency, All rights reserved

International Business All activities needed to create, ship, and sell goods and services across national borders Also referred to as global business, international trade, and foreign trade Importance of international business –Source of raw materials –Supplier of foreign products –New market and investment opportunities –Improved political relations Copyright © Texas Education Agency, All rights reserved 2

History of International Business Roman Empire-more than 15,000 years ago dominated international business for more than 600 years Eleventh Century –Renewed interest in global commercialism – : several European countries established colonies in Africa, Asia, North America, and South America Copyright © Texas Education Agency, All rights reserved 3

International Business Basics Trade activities -viewed from the side of the buyer and the seller Imports -products bought from businesses in other countries Exports -products sold in other countries Copyright © Texas Education Agency, All rights reserved 4

Four Major Categories of the International Business Environment Geographic conditions Cultural and social factors Political and legal factors Economic conditions Copyright © Texas Education Agency, All rights reserved 5

Trade Barriers Attempts to protect domestic business –Quota-limit the amount of trade –Tariff-tax on imports –Embargo-refuse trade with another country usually for political reasons Copyright © Texas Education Agency, All rights reserved 6

Helpful Knowledge for International Business History Geography Foreign Language Culture Study Skills Copyright © Texas Education Agency, All rights reserved 7

Advantage of International Business Consumer-has more choices Citizen-has increased awareness of the world Copyright © Texas Education Agency, All rights reserved 8

9 Chapter Terms Culture – the accepted behaviors, customs, and values of a society or a system of learned, shared, unifying, and interrelated beliefs, values, and assumptions Domestic business – making, buying, and selling goods and services within a country Exports – products sold to other countries Global dependency – a condition that exists when items consumers need and want are created in other countries Imports – products bought from businesses in other countries International business – all business activities needed to create, ship, and sell goods and services across national borders Trade barriers – restrictions that reduce free trade among countries