Business Principles and Management International Environment of Business Chapter 4 Mr. Kretschmer

History of International Business International Business – Not New Phoenicians and Greeks – Sailing the seas and Trading with Europe What company invested in international business in 1868? Singer Sewing Machines

History and Importance of International Business What did businesses do during the great economic expansion during the 18 th and 19 th centuries? What does every country have that is their own way of doing business? World War II – 1945? Foreign Trade has flourished. Why?

Importance of International Business How are you affected directly or indirectly by international business? Examples of Foreign Businesses? Examples of American Businesses?

Importance of International Business List some popular items that Americans buy from foreign countries and popular items that foreign countries buy from us. Service industries – what fraction does this represent? What is foreign investment? What percentage of jobs depends of foreign investment?

Forms of International Business Exporting Vs. Importing – Explain! Exporting Exporting International Licensing International Licensing Joint Venture Joint Venture Wholly-Owned Subsidiary Wholly-Owned Subsidiary Strategic Alliances Strategic Alliances

Multinational Firms Do you know two multinational firms that were found to be corrupt?

International Trade Challenges What challenges does international business bring to the plate? Tariff? Advantages? Dumping products? Good Vs. Bad

International Trade Challenges How do we prevent dumping? Non-tariff barriers – give examples. Embargo – what is it? What country does the USA have an embargo with?

International Trade Challenges Why does the government impose sanctions? Exchange Rates – Impose Challenges. Exchange Rates Exchange Rates

International Trade Challenges There are sometimes culture barriers to international trade. High Context Vs. Low Context

Reasons for Growth in International Business Why do we conduct business internationally? Advantages Vs. Disadvantages Give an example of a trading bloc? Why would government create a trading bloc? What is the IMF and should they assist countries in repaying their financial difficulties?

Reasons for Growth in International Business List some technological items that have helped international business tremendously.

Theories of International Trade and Investment Comparative Advantage Theory Vs. Product Life Cycle Theory Trade Balancing – Why is that so important?

Career Opportunities in International Business List several jobs that a person can have dealing with International Business. Would you experience culture shock if you were sent to manage a business in another country? Explain.

Any Questions