We Live in a Global Economy

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1 We Live in a Global Economy - The Foundation of International Business -2 International Business Basics 20 South-Western Cengage Learning

2 LESSON - The Foundation of International Business GOALS 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. 20 South-Western Cengage Learning SLIDE 2

3 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 20 South-Western Cengage Learning SLIDE 3

4 Why Is International Business Important? Materials, parts, and demand Global opportunities Improved political relations 20 South-Western Cengage Learning SLIDE 4

5 When Did International Business Start? China, India, and Japan 5,000 years ago Africa and South America thousands of years ago Eleventh century Fifteenth and sixteenth centuries Colonization 20 South-Western Cengage Learning SLIDE 5

6 Selected Countries and Their Colonial Heritage Country Colonized By Year of Independence Australia United Kingdom 90 Brazil Portugal 822 Cambodia France 953 Canada France, United Kingdom 867 Chad France 960 Chile Spain 88 Cyprus Turkey, United Kingdom 960 El Salvador Spain 82 Continued on next slide 20 South-Western Cengage Learning SLIDE 6

7 Selected Countries and Their Colonial Heritage Country Colonized By Year of Independence Iceland Norway, Denmark 944 Mexico Spain 82 Mozambique Portugal 975 Namibia Germany, South Africa 990 South Africa United Kingdom, Netherlands 90 United States United Kingdom, France, Spain, Russia Continued from previous slide 776 Vietnam France South-Western Cengage Learning SLIDE 7

8 LESSON -2 International Business Basics GOALS Describe basic inter-national business activities. Explain the components of the international business environment. Name important skills for international business and describe the importance of international business for workers, consumers, and citizens. 20 South-Western Cengage Learning SLIDE 8

9 The Fundamentals of International Trade Imports Exports Trade barriers 20 South-Western Cengage Learning SLIDE 9

10 The International Business Environment Geographic conditions Cultural and social factors Political and legal factors Economic conditions 20 South-Western Cengage Learning SLIDE 0

11 The International Business Environment GEOGRAPHIC CONDITIONS Climate Terrain and seaways Natural resources Agriculture products CULTURAL & SOCIAL FACTORS Language Education Religion Values and customs Social relationships POLITICAL & LEGAL FACTORS Type of government Political stability Government policies toward business ECONOMIC CONDITIONS Type of economic system Education level Type of industries Technology 20 South-Western Cengage Learning SLIDE

12 The Global Business World International business skills History Geography Foreign language Cultural awareness Study skills The global citizen 20 South-Western Cengage Learning SLIDE 2

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