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2 Though global trade has existed for centuries, today the business world is changing and becoming more international as a result of globalization.

3 To define business and international business To explain the historical origins of international business

4 To identify the major factors that influence trade To explain levels of participation in international trade

5 International trade affects most companies and customers in the United States and around the world.

6 business any activity that seeks profit by providing goods or services to others international business any activity involving business operations across national borders

7 domestic company a company that conducts business in only one country, which is known as the home country international company a company that conducts business across national borders

8 globalization the increasing integration of the world economy global dependence the concept that all countries depend on each other for trade

9 Understanding International Business Everyone is affected by international business. Understanding international trade will help you prepare to work in business today.

10 Business and International Business Business can be selling lemonade at a homemade stand or a corporation expanding into international markets. business any activity that seeks profit by providing goods or services to others

11 Business and International Business Another term for international business is global business. international business any activity involving business operations across national borders

12 Business and International Business BusinessTangibleIntangible GoodsServices

13 Domestic and International Companies A family-owned diner in your neighborhood, it is a domestic company. domestic company a company that conducts business in only one country, which is known as the home country

14 Domestic and International Companies An international company contributes to the trend of globalization. international company a company that conducts business across national borders globalization the increasing integration of the world economy

15 Domestic and International Companies Relate Can you name a service that you or your family could use anywhere in the world?

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17 Home and Host Countries A home country is the country in which the selling firm is located. If a representative travels to another country to market or sell products, that country is the host country.

18 The History of Global Business Trade took place between China, India, and Japan as many as 15,000 years ago. During the 11 th century, England, France, Spain, and Portugal all used ships to move products between countries.

19 The History of Global Business s 1599: The British East India Company conducts trade through Asia : Merchants in colonial America conduct trade and export agricultural products and other goods to Britain and European countries. 1776: British investors try to establish companies in the newly independent United States 1800s: Multinational companies such as Colt’s Manufacturing Company and Singer’s sewing machine company begin to appear. 1920: More than 37 U.S. companies operate production facilities in two or more nations. Every car bought in Japan is made by a U.S. company. 2000s: Americans sell goods and services to other countries, and Americans purchase goods and services from other countries.

20 The History of Global Business Question What were two multinational companies in the United States during the 1800s?

21 Global Trendsetters in Switzerland Meeting and Greeting Shake hands firmly with people you meet, and again upon leaving. Business Etiquette Give your business card to associates you meet. Be punctual. Business Dress Men wear suits and ties, and women wear suits or dresses.

22 The Global Business Environment Trade relations between companies and countries are affected by three factors. Cultural and Social Political and Legal Economic

23 The Global Business Environment

24 Cultural and Social Factors Changes in a country’s education system Changes in a country’s economic philosophy Religious influences Proper business protocols

25 Political and Legal Factors Wars and international conflicts Elections New governments

26 Economic Factors Recession Inflation Economic growth or decline Exchange rates Natural disasters

27 International Business Management Forms of business ownership and the legal requirements for operating businesses vary in different countries. The things that motivate employees vary around the world.

28 Marketing and International Trade The four Ps of marketing are vital elements for successful marketing in international business. Product 1 Price 2 Place 3 Promotion 4

29 Accounting and Finance Effective businesspeople understand the importance of financial issues for international trade. Accounting and finance are the major elements of money management in international trade.

30 Human Resource Management and Careers The human resources department is responsible for recruiting, hiring, and training people. Gain additional training and learn how to do business across international borders.

31 Trade Relations The relationships and ties between companies around the world have created global dependence. global dependence the concept that all countries depend on each other for trade

32 Trade Relations

33 Trade Relations Participants in International Trade Individual ConsumersStates and Provinces CompaniesCountries

34 Volcanic Trade Region The Pacific Rim is also called the “ring of fire,” due to the many volcanoes located along the edge of the Pacific tectonic plate in the north Pacific Ocean.

What is international business? International business is any activity involving business operations across national borders.

When did global trade first begin? International trade began as much as 15,000 years ago.

What are three factors that influence trade relations? cultural and social; political and legal; and economic

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