1. THE FOUNDATION OF INTERNATIONAL BUSINESS
Chapter 1
11/3/2000
LESSON
1-1
GOALS
THE FOUNDATION OF INTERNATIONAL BUSINESS
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.
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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

3. Why Is International Business Important?
Materials, parts, and demand
Allows us to have more products and services
Global opportunities
Jobs
Improved political relations
Relationships with other countries

4. Selected Countries and Their Colonial Heritage
COUNTRY COLONIZED BY DATE OF INDEPENDENCE
Australia United Kingdom 1901
Brazil Portugal 1822
Cambodia France 1953
Canada France, United Kingdom 1867
Chad France 1960
Chile Spain 1818
Cyprus Turkey, United Kingdom 1960
El Salvador Spain 1821
Iceland Norway, Denmark 1944
Mexico Spain 1821
Mozambique Portugal 1975
Namibia Germany, South Africa 1990
South Africa United Kingdom, Netherlands 1910
United States United Kingdom, France, Spain, Russia 1776
Vietnam France 1955

5. INTERNATIONAL BUSINESS BASICS
LESSON
1-2
GOALS
INTERNATIONAL BUSINESS BASICS
Describe the basic inter-national business activities.
Explain the components of the international business environment.
Name important skills for international business.
Describe the importance of international business for workers, consumers, and citizens.
© SOUTH-WESTERN EDUCATIONAL PUBLISHING

6. The Fundamentals of International Trade
Imports – Goods and Services that are brought into your country from another country
Exports – Goods and services that are sent to another country.
Trade barriers – tariffs, taxes, and quotas that are used to discourage international trade.

7. The International Business Environment
Geography
Cultural
and Social
Factors
Political
and Legal
Factors
Economic Conditions

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

9. The Global Business World
International business skills
History
Geography
Foreign language
Cultural awareness
Study skills
The global citizen, worker, and consumer