1. © 2002 Thomson Learning, Inc. Text by Profs. M. Czinkota, I. Ronkainen, and M. Moffett Multimedia Presentation by Prof. Milton Pressley The University of New Orleans milton.pressley@uno.edu Assisted by A. Kerher International Business Sixth Edition

2. © 2002 Thomson Learning, Inc. CHAPTER 1 The International Business Imperative The International Business Imperative Text by Profs. M. Czinkota, I. Ronkainen, and M. Moffett Multimedia Presentation by Prof. Milton Pressley The University of New Orleans milton.pressley@uno.edu

3. © 2002 Thomson Learning, Inc. To understand the history and impact of international business To understand the history and impact of international business To learn the definition of international business To learn the definition of international business To recognize the growth of global linkages today To recognize the growth of global linkages today To understand the U.S. Position in world trade and the impact international business has on the United States To understand the U.S. Position in world trade and the impact international business has on the United States To appreciate the opportunities and challenges offered by international business To appreciate the opportunities and challenges offered by international business LEARNING OBJECTIVES

4. © 2002 Thomson Learning, Inc. International Business: Opportunity and Conflict Globalization creates wealth and benefits Globalization creates wealth and benefits Critics say it increases the wealth of corporations and investors at the expense of the poor, and does other damage to society in general Critics say it increases the wealth of corporations and investors at the expense of the poor, and does other damage to society in general © Milton M. Pressley

5. © 2002 Thomson Learning, Inc. The Need for International Business Failure to become part of the global market assures a nation of declining economic influence and a deteriorating standard of living Failure to become part of the global market assures a nation of declining economic influence and a deteriorating standard of living © Milton M. Pressley

6. © 2002 Thomson Learning, Inc. A Definition of International Business International Business International Business Satisfaction Satisfaction Across National Borders Across National Borders International Transactions International Transactions A Brief History A Brief History Pax Romana Pax Romana Pax Americana Pax Americana Smoot-Hawley Act Smoot-Hawley Act © Milton M. Pressley

7. © 2002 Thomson Learning, Inc. Figure 1 – Growth of World Output and Trade 1897-2000

8. © 2002 Thomson Learning, Inc. A Definition of International Business Sales of foreign affiliates of Multinational Corporations are twice as high as global exports Sales of foreign affiliates of Multinational Corporations are twice as high as global exports © Milton M. Pressley

9. © 2002 Thomson Learning, Inc.

10. Global Links Today Network of Links Around the World That Bind Us Network of Links Around the World That Bind Us © Milton M. Pressley

11. © 2002 Thomson Learning, Inc. Figure 1.2 – The Global Components of a Big Mac in Ukraine

12. © 2002 Thomson Learning, Inc. Global Links Today Composition of Trade has been changing Composition of Trade has been changing © Milton M. Pressley

13. © 2002 Thomson Learning, Inc. The Current U.S. International Trade Position U.S. Is a Market for the World, but Not a Supplier U.S. Is a Market for the World, but Not a Supplier © Milton M. Pressley

14. © 2002 Thomson Learning, Inc.

15. The Current U.S. International Trade Position The Impact of International Business on the United States The Impact of International Business on the United States Macroeconomic Level Macroeconomic Level Microeconomic Level Microeconomic Level © Milton M. Pressley

16. © 2002 Thomson Learning, Inc. Figure 1.3 Average Plant Salary and Wages (per worker, dollars per hour)

17. © 2002 Thomson Learning, Inc. The Current U.S. International Trade Position Globalization: the watchword Globalization: the watchword © Milton M. Pressley

18. © 2002 Thomson Learning, Inc. The Structure of the Book Part 1: Introduces the importance of international business; discusses the interaction between international business and the nation-state; and addresses policy, political, legal, and cultural issues. Part 1: Introduces the importance of international business; discusses the interaction between international business and the nation-state; and addresses policy, political, legal, and cultural issues. Part 2: Presents the theoretical dimensions of international trade and investment and explains the effect of international economic activities on a country. Part 2: Presents the theoretical dimensions of international trade and investment and explains the effect of international economic activities on a country. © Milton M. Pressley

19. © 2002 Thomson Learning, Inc. The Structure of the Book Part 3: Covers the macroenvironment for international business and highlights the role of the international monetary system, economic integration, and economic development. Part 3: Covers the macroenvironment for international business and highlights the role of the international monetary system, economic integration, and economic development. Part 4: Presents the research activities required to properly pre-pare for international business and lays out the options for market entry. Part 4: Presents the research activities required to properly pre-pare for international business and lays out the options for market entry. Part 5: Addresses all the business management issues relevant to international business, using a strategic and applied perspective. Part 5: Addresses all the business management issues relevant to international business, using a strategic and applied perspective. © Milton M. Pressley