© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS LESSON1-1 GOALS  Distinguish between domestic business and international business.  Discuss the reasons.

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© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS LESSON1-1 GOALS  Distinguish between domestic business and international business.  Discuss the reasons why international business is important.  Understand that international trade is not just a recent event. THE FOUNDATION OF INTERNATIONAL BUSINESS

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 2 What Is International Business? All business activities needed to create, ship, and sell goods and services across national borders Also called Global business International trade Foreign trade

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 3 Why Is International Business Important? Materials, parts, and demand Global opportunities Improved political relations

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 4 Selected Countries and Their Colonial Heritage COUNTRYCOLONIZED BYDATE OF INDEPENDENCE AustraliaUnited Kingdom 1901 BrazilPortugal1822 CambodiaFrance1953 CanadaFrance, United Kingdom1867 ChadFrance1960 ChileSpain1818 CyprusTurkey, United Kingdom1960 El SalvadorSpain1821 IcelandNorway, Denmark 1944 MexicoSpain1821 MozambiquePortugal1975 NamibiaGermany, South Africa1990 South AfricaUnited Kingdom, Netherlands1910 United StatesUnited Kingdom, France, Spain, Russia1776 VietnamFrance1955

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS LESSON1-2 GOALS INTERNATIONAL BUSINESS BASICS  Describe basic inter-national business activities.  Explain the components of the international business environment.  Name important skills for international business and describe the importance of international business for workers, consumers, and citizens.

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 6 The Fundamentals of International Trade Imports Exports Trade barriers

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 7 The International Business Environment International Business Environment Geography Economic Conditions Political and Legal Factors Cultural and Social Factors

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 8 The International Business Environment Geography Climate Terrain, seaways Natural resources Agricultural products Cultural & Social Factors Language Education Religion Values, customs Social relationships Political & Legal Factors Type of government Political stability Government policies toward business Economic Conditions Type of economic system Education level Types of industries Technology

© SOUTH-WESTERN THOMSONINTERNATIONAL BUSINESS 9 The Global Business World International business skills History Geography Foreign language Cultural awareness Study skills The global citizen, worker, and consumer