Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. What We Are Striving To Accomplish 1.Defining international business 2.To recognize today's global linkage that drives nations and firms to operate across borders 3.To understand the U.S. position in world trade and the impact international business has on the nation 4.To consider the effects of global concerns about uncertainty, risk, and terrorism on international business

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Globalization Awareness, understanding, and response to global developments linkages. SOURCE: IMF Homepage, April 18,2003

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. International Business Results SOURCE: April 18, 2003 Innovations Faster dissemination of goods Faster dissemination of information Efficient use of human capital Improved access to financing

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. International Business Types Import-export –sale and purchase of tangible goods and services to and from another country. Foreign direct investment –establishment or expansion of operations in a foreign country.

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Global Links Today The volume of international trade in goods and services has expanded from $200 billion to more than $7.6 trillion. The value of trade has greatly exceeded the level of overall world output. Sheer volume and value of trade has led to a network of worldwide links. The United Nations

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Today global strategies, coupled with production and distribution sharing are common. Firms also link together through global supply agreements and joint undertakings.

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Gross Domestic Product Total value of goods and services produced in a country in a year. U.S. has gained as a prominent market but some importance as a supplier. U.S. export growth has not kept pace with total growth of world trade.

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. The Need For Global Trade Good for job creation Bring in wide range of products & services to a country Exert pressure on domestic products to improve Expand consumer choices Improve standard of living Allows for economies of scale Allows firms to hone their competitive skills abroad

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Global Business Levels  Macroeconomic level,the level at which trading relationships affect individual markets.  Microeconomic level, business concerns that affect an individual firm or industry.

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Exports & Imports per Capita for Selected Countries (US $) SOURCES: February 13, 2001; CIA “The World Factbook, 200,” February ; March 20, The table shows the degree to which the U.S. comparatively “under participates” in international business on a per capita basis.

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Most Admired Global Companies The most admired corporations worldwide are substantial exporters and international investors SOURCE: Based on Fortune, September 29, 2002,

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Risk and Uncertainty VulnerabilityOutragePoliticsCollaborationConnection International Reaction

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Important International Questions 1. Is our product in demand abroad? 2. What must I do to get ready to market internationally?