Presentation on theme: "The World Of International Business"— Presentation transcript:
1 The World Of International Business Chapter 1International Business
2 The Nature of International Business Understanding International BusinessOverview of International BusinessBusiness and International BusinessBusiness: Any activity that seeks profit by providing goods or services to othersInternational Business: Any activity involving business operations across national bordersDomestic and International CompaniesDomestic CompanyA company that conducts business in only one countryInternational CompanyCompany that conducts business across national bordersThe number of companies continue to grow, this trend is called globalization.Home and Host CountriesHome country – where the selling company is headquarteredHost country – where the product is being sold (outside the home)1-1
3 The Nature of International Business The History of Global BusinessThe 1600’s to 1800’sBritish/Dutch East India Co. – Tea, spices, fabricColonial America trade with Britain and EuropeSingerThe 1900’s to Present1920 – 37 U.S. companies operated in 2 or more countriesU.S. buys and sells products and services all over the worldThe Global Business EnvironmentCultural and Social FactorsInfluenced by countries education system, economic philosophy and religious beliefsPolitical and Legal FactorsWars and international conflictsElectionsEconomic FactorsEconomic growth or decline, interest ratesNatural Disasters
4 The Nature of International Business International Business ManagementBusinesses must adapt/adjust their management processes when they work in other parts of the worldLeadership styles and employee motivation are different from country to countryMarketing and International TradeProductPricePlacePromotionAccounting and FinanceMust understand the financial issues of international tradeCurrency exchange is very important
5 The Nature of International Business Human Resource Management and CareersHow people are recruited, hired and trainedTrade RelationsGlobal Dependence – Concept that all countries depend on each other for trade.Individual ConsumersOne person buys a product that is from another countryPeople who travel to a foreign country buy many goods and servicesCompaniesImport and export goodsBuy parts for their productsState and ProvincesTrading partners or relationships are developed between states and countries through regional connectionsCountries and Trade RelationsTrade agreements- NAFTAA Global Effect
6 Questions 1. What is international business? Give 3 Examples2. When did global trade first begin?3. What are three factors that influence trade relations?Provide examples for each factor4. Explain the concept of geographic proximity and how it might affect trade in North America.
7 The Scope of International Business The Impact of International BusinessLocal LevelConsumers expect local businesses to keep up with local, national and international trendsLocal merchants must adapt to the rapidly changing worldState and Provincial LevelMany state governments have commerce departmentsActively seek ways to sell products within the state to countries around the worldNational LevelBalance of trade (Imports vs. Exports)Affects developing countries, need to import more products.International LevelMake sure that international trade is fair1-2
8 The Scope of International Business Ethics and Social ResponsibilityEthics:Set of moral principles by which people conduct themselves personally, socially, and professionallyBusiness Ethics:Set of ideas about how a company should conduct business in relation to legal, social and environmental issuesSocial ResponsibilityThe duty to do what is best for society. Businesses do the following to promote social responsibilityEliminate negative attitudesPerform positive activitiesCode of Ethics –A statement that explains what a company or group believes is proper and improper conduct
9 The Scope of International Business StakeholderThe various individuals or groups of people who have direct interest, involvement, or investment in somethingEthical IssuesProfits vs. pollution, unfair wages,Factors Affecting Ethical DecisionsCulture and HistoryReligion may play a factorHistorical precedent or past acceptanceUnionsGovernment RegulationsChild labor laws, low wages
10 The Scope of International Business Local and Global ImpactsBusiness has expanded with the internet, new technologies and improved transportation
11 Questions 1. How does international business affect ordinary people? 2. What are ethics and social responsibility?3. What are stakeholders?
12 Corporate EthicsWith a partner, you will be assigned a Corporate Level Ethical IssueDefine and discuss the issueDetermine at least 3 ways the issue can be perceivedAnswer: Can this view be considered ethical?Put into a PowerPoint Presentation to present to the class