Bell Ringer How can US businesses get involved in international trade?  Such as U.S automobile manufacturer ◦ What could it do to international trade?

Chapter 6.2 International Business

What You’ll Learn How businesses can get involved in international trade. The standard business practices involved in importing and exporting. The cultural, economic, and political factors that should be considered when deciding whether to do business abroad.

Business Involvement in International Trade Importing ◦ U.S. hire customs brokers – specialists who licensed by the US Treasury Department which know the different laws, procedures, and tariffs; and handle over 90 percent of all imports due to the complex procedures. Exporting ◦ Most businesses hire international freight forwarders, which are licensed by U. S. Maritime Commission. ◦ Most businesses are wise to invest in special insurance when dealing with international trading. Setting Up Shop in a Foreign Country ◦ Multinationals – large corporations that have operations in several countries. ◦ Mini-nationals – midsize and smaller companies that have operations in foreign countries. ◦ Joint Ventures – partnerships that allow companies to participate in another country’s economy.

Special Considerations in International Business Cultural Factors Economic Factors Political and Legal Factors Technological Factors

Quiz 1. True or False. U.S. hire customs brokers which know the different laws, procedures, and tariffs; and handle over 90 percent of all imports due to the complex procedures. 2. True or False. Most businesses hire international freight forwarders, which are licensed by U. S. Maritime Commission. 3. True or False. Most businesses are wise to invest in special insurance when dealing with international trading. 4. True or False. Cultural, economic, and political factors are special considerations in international business. 5. True or False. When setting up shop in foreign countries, there are three types of company choices.