1. LESSON 1-1 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.

2. International Business1
International Business
In the early days of the United States, most families grew the food they ate and made the clothes they wore. As population increased production and distribution methods improved.
In the same way that people within a country are dependent on each other for goods and services, so are countries.
Nations that have extensive production and distribution facilities-such as United States, Canada, and Japan and the western Europe nations-have some level of economic independence. However, they are still dependent on other countries.
Ex. Most of the coffee used in the United States comes from Brazil, and Japan depends on other countries for almost all of its oil.

3. 1
Domestic Business
Making, buying and selling goods and services within a country is called domestic business. If you purchase a soft drink made in your own country it is called domestic.
Quick Think?
What occurred in the last summer Olympics that did NOT occur in this upcoming WINTER Olympics with regards to domestic business?

4. What Is International Business?1
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

5. Why Is International Business Important?1
Why Is International Business Important?
Materials, parts, and demand
Global opportunities
Improved political relations

6. Materials, parts, and demand1
Materials, parts, and demand
Products often made in the United States often include materials from around the world. Each year American companies buy oil and steel from other nations to use in factories. Nearly every U.S. built car has parts from-Japan, Mexico, France, Korea, and England.
Global Dependency- exists when items that consumers need and want are created in other countries

7. 1
Global Opportunities
Many businesses, large and small increase sales and profits with foreign trade. These companies are involved in global economy
People invest in companies/stock-why?
Companies expand to other countries-why?

8. Improved Political Relations1
Improved Political Relations
Help to improve mutual business understanding, communication, and the level of respect among people in different nations.

9. LESSON 1-2 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.

10. The Fundamentals of International Trade1
The Fundamentals of International Trade
For the buyer, products bought from businesses in other countries are called imports.
Ex. A manufacturing company in Korea can sell radios to an electronics store in the United States
Who is the importer?
For the seller, exports are products sold in other countries. Same question. Who is the exporter?

11. 1
Trade Barriers
Although this process sounds simple, obstacles can arise. These are called trade barriers.
Trade barriers-restrictions that reduce free trade among countries. These barriers could appear in several forms:
Import taxes increase the cost of foreign products
Quotas restrict the number of imports
Laws prevent certain products from coming into a country

12. The International Business Environment1
The International Business Environment
Geographic conditions
Cultural and social factors
Political and legal factors
Economic conditions

13. The International Business Environment1
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

14. The Global Business World1
The Global Business World
International business skills
History
Geography
Foreign language
Cultural awareness
Study skills

15. 1
The Global Citizen
Consumers have more choices because the selection of goods and services is no longer limited to items produced in their own country.
There might be more products, different products, or products that cost less.
Career opportunities expand for workers as international business creates demand for additional workers and different kinds of jobs.
Act responsibly