1. Ch. 4 – International Business
– Cultural differences in Business, China Focus

2. Taking Care of Business.. In other countries?!
Culture: the sum of a country’s way of life, beliefs and customs
Ways it impacts business:
Dealing with people, punctuality, greetings, nonverbal communication, manners, decision making etc.

3. Culture activity!
You will each be assigned a country and be giving tips on how to introduce yourselves
Your task is to introduce yourself to your classmates in that culture and try to guess where each other comes from

4. International Business
Business transactions necessary for creating, shipping, and selling goods and services across national borders

5. International Business
Domestic Transaction
selling of items produced in the same country.
International Transaction
selling of items produced in other countries
Think about it:
WHY DO WE DO BUSINESS INTERNATIONALLY?
WHAT ARE THE BENEFITS?
International transactions (foreign trade) involve creating, shipping, and selling foods and services across national boarders.
The global economy is the exchange of goods and services among people in different countries throughout the world.

6. Benefits of International Business
1. Access to Markets
Markets are 200 times larger than those at home.
Global Product
standardized item that is offered in the same format in all countries. Ex. Soccer ball
BENEFITS FOR BUSINESS?
Access to Markets
Examples of standardized, or global product are pencils, soccer balls, and cameras.
Packages food items are not generally global products.
Businesses must make adaptations to their products and services to be successful in other countries.
Cheaper Labour
Canadian businesses, in an attempt to lower costs of production, use cheap foreign labour to maximize profits.

7. Benefits of International Business7
2. Cheaper Labour
Lower prices
#1 reason
BENEFITS FOR BUSINESS?
Access to Markets
Examples of standardized, or global product are pencils, soccer balls, and cameras.
Packages food items are not generally global products.
Cheaper Labour
Canadian businesses, in an attempt to lower costs of production, use cheap foreign labour to maximize profits. 7

8. Benefits of International Business
Increased Quality of Goods
Country may be expert
4. Increased Quantity
Can produce more
BENEFITS FOR BUSINESS?
Increased Quality of Goods
Products such as luxury cars as parts manufactured in many different countries come together to form the finished product.
Increased Quantity
Companies may have to increase production to meet demand, this may means increased efficiency, longer hours of operation or the establishment of new facilities.
Access to Resources
Natural Resources: bamboo from China to make furniture
Human Resources: cheap factory labour in India
Capital Resources: specialized machinery made in Germany

9. Benefits of International Business
Access to Resources
Access to natural, human, and capital resources
BENEFITS FOR BUSINESS?
Increased Quality of Goods
Products such as luxury cars as parts manufactured in many different countries come together to form the finished product.
Increased Quantity
Companies may have to increase production to meet demand, this may means increased efficiency, longer hours of operation or the establishment of new facilities.
Access to Resources
Natural Resources: bamboo from China to make furniture
Human Resources: cheap factory labour in India
Capital Resources: specialized machinery made in Germany

10. Five P’s of International Business
5 Major reasons for doing international business (5Ps)
Product
More variety
Price
May cost less depending on foreign wages, taxes etc.
THE FIVE Ps OF INTERNATIONAL BUSINESS
As businesses expand internationally they create jobs at home and overseas.
Knowledge that is exchanged, as a result of international business, it results in new approaches to production, marketing, and selling that benefits domestic consumers as well as producers.
Political benefits also materialize, dialogue and understanding are improved and communication and respect are enhanced.
All countries benefit when businesses produce specialized goods and services that appeal to consumers.
International business provides increased markets for businesses and offers them a broader choice of products, services, and prices for its consumers.
Product
Due to out geographical location and seasonal climate change Canada imports crops (such as citrus all year and strawberries in the winter) from other countries.
Canada exports products such as timber and grain that we have an abundance of.
Price
Lower production costs may mean lower prices for consumers, causing increased units sold, therefore improved profits.
Proximity
Historically trade between countries was heavily dependant on proximity; the closer a business or individual that you traded with the greater an asset they were to you or your business.

11. Five P’s of International Business
Proximity
Neighbouring country’s – easy to trade
Ex: 80 percent of the Canadian population lives within 170 km of the American border.
THE FIVE Ps OF INTERNATIONAL BUSINESS
As businesses expand internationally they create jobs at home and overseas.
Knowledge that is exchanged, as a result of international business, it results in new approaches to production, marketing, and selling that benefits domestic consumers as well as producers.
Political benefits also materialize, dialogue and understanding are improved and communication and respect are enhanced.
All countries benefit when businesses produce specialized goods and services that appeal to consumers.
International business provides increased markets for businesses and offers them a broader choice of products, services, and prices for its consumers.
Product
Due to out geographical location and seasonal climate change Canada imports crops (such as citrus all year and strawberries in the winter) from other countries.
Canada exports products such as timber and grain that we have an abundance of.
Price
Lower production costs may mean lower prices for consumers, causing increased units sold, therefore improved profits.
Proximity
Historically trade between countries was heavily dependant on proximity; the closer a business or individual that you traded with the greater an asset they were to you or your business.

12. Five P’s of International Business
Preference
Based on reputation and specialization
Ex: Swiss watches, Belgium chocolates.
THE FIVE Ps OF INTERNATIONAL BUSINESS
Preferences
Some foreign products that Canadian consumers purchase due to preference are Belgian chocolate, Swiss watches, Australian wine, German cars, and Cuban cigars.
Promotion
Before global communication methods (such as satellite broadcasting and the Internet) businesses found it difficult to let others far away know about themselves.
According to Interbrand Corp.’s website a business can develop a global brand name in three years by using the Internet.
Easy promotion is an incentive for companies to create an international presence.

13. Five P’s of International Business
Promotion
Technology has made international promotion easier
THE FIVE Ps OF INTERNATIONAL BUSINESS
Preferences
Some foreign products that Canadian consumers purchase due to preference are Belgian chocolate, Swiss watches, Australian wine, German cars, and Cuban cigars.
Promotion
Before global communication methods (such as satellite broadcasting and the Internet) businesses found it difficult to let others far away know about themselves.
According to Interbrand Corp.’s website a business can develop a global brand name in three years by using the Internet.
Easy promotion is an incentive for companies to create an international presence.

14. Where do your clothes come from?

15. Where do your clothes come from?
For your shirt, pants, & shoes, find out what country they were made in. Do your best to figure out an exact country, or at minimum give an approximate location.

16. Doing Business in china Video - Handmaster
Questions to think of:
What are some of the challenges of business in China?
What benefits will he get by doing business in China?