Principles of Business, Marketing, and Finance Business in a Global Society UNT in partnership with TEA, Copyright ©. All rights reserved

International Business All business activities needed to: –Create –Ship –Sell Goods and services across national borders. UNT in partnership with TEA, Copyright ©. All rights reserved 2

Foreign Trade International Trade Global business Other Names for International UNT in partnership with TEA, Copyright ©. All rights reserved 3

Importance of International Business Global Opportunities Imports -meet Consumer Demands Exports -increase Business Materials and Parts are Needed from Other Countries UNT in partnership with TEA, Copyright ©. All rights reserved 4

Domestic Business Business Within One Country Making, Buying, Selling Goods and Services within One Country UNT in partnership with TEA, Copyright ©. All rights reserved 5

Produce Raw GoodsProcess Raw Goods Manufacture Goods from Processed Goods Distribute Goods Manufacture Goods from Raw Goods Provide Services Types of Business Activities UNT in partnership with TEA, Copyright ©. All rights reserved 6

Fundamentals of International Trade Imports Exports Trade Barriers –Protectionism –Tariff –Quota –Embargo UNT in partnership with TEA, Copyright ©. All rights reserved 7

International Business Environment Geography Economic Conditions Cultural and Social Factors Political and Legal Factors UNT in partnership with TEA, Copyright ©. All rights reserved 8

Global Marketplace Multinational Corporation –conducts business in many countries. –has facilities and offices in many countries.. –works like a shopping mall or a supermarket. UNT in partnership with TEA, Copyright ©. All rights reserved 9

Resources for a Country UNT in partnership with TEA, Copyright ©. All rights reserved 10 HumanNatural

financialhumanNnatural resources What a country does the best depends upon Specialization UNT in partnership with TEA, Copyright ©. All rights reserved 11

Currency Exchange Rate –Price at which one currency can buy another currency –Exchange rates change daily –Currency rate depends on how many other countries want to buy the country’s products UNT in partnership with TEA, Copyright ©. All rights reserved 12

Different Exchange Rate Scenarios Favorable -when the value of a country’s currency goes up compared to another country’s currency Unfavorable -when the value of a country’s currency goes down compared to another country’s currency Countries lower the value of the currency to increase business UNT in partnership with TEA, Copyright ©. All rights reserved 13

Balance of Trade Trade Surplus -more exports than imports Trade Deficit -more imports than exports UNT in partnership with TEA, Copyright ©. All rights reserved 14

Principles of Business, Marketing, and Finance Forms of Business Ownership Copyright © Texas Education Agency, All rights reserved.

16 “Copyright and Terms of Service Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: 1)Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency; 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency; 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way; 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee. Copyright © Texas Education Agency, All rights reserved.

Changing Employment Trends New jobs evolve while old jobs disappear. The U.S. has an aging population. Minorities are making up a larger percentage of the workforce. 17 Copyright © Texas Education Agency, All rights reserved.

Businesses in the U.S. Economy Employ millions of Americans Compensate owners and investors Pay taxes to federal, state, and local governments Make and distribute products and services needed by consumers, government, and businesses 18 Copyright © Texas Education Agency, All rights reserved.

Service Business Carry out activities that are consumed by its customers Intermediaries Sell goods and services Producers Create products and services used by other individuals and businesses Three Major Categories of Businesses 19 Copyright © Texas Education Agency, All rights reserved.

Forms of Business Ownership Sole Proprietorship –Individuals who want to work and make decisions independently –Little government regulation –Great risk for the owner 20 Copyright © Texas Education Agency, All rights reserved.

Forms of Business Ownership Partnership –The partnership is owned and controlled by two or more people. –Partners share an idea for a business. –Partners want to cooperate in managing and investing, and want to share the risks and rewards of the business. 21 Copyright © Texas Education Agency, All rights reserved.

Forms of Business Ownership Corporation –Separate legal entity owned by one or more shareholders and managed by a board of directors More difficult to form Subject to more regulations Limited liability for investors 22 Copyright © Texas Education Agency, All rights reserved.

Limited Liability Partnership & CompanyJoint Venture S- Corporation Nonprofit Corporation FranchiseCooperative Other Forms of Business Ownership 23 Copyright © Texas Education Agency, All rights reserved.