1. BBB4M
CHAPTER 2

2. 2.1 Aspects of International Business
International Business is all the activities needed to get a product to consumers. It involves trade, importing, exporting, use of foreign assets and foreign investment.
International Trade – involves companies in one country fulfilling the needs and wants of another by selling products to groups (exporting) and vice versa (importing)

3. 2.1 Aspects of International Business
Importing
To bring products or services into a country, for use by another business or for resale.
There must be a known demand for the product
The majority of the goods that Canada imports come from the united states
Global Sourcing
The process of a company buying equipment, capital goods, raw materials, or services from around the world.

4. 2.1 Aspects of International Business
Exporting
To send goods or services to another country, for use by a business or for resale.
STARTING AN IMPORT/EXPORT BUSINESS
Being ready : Management commitment, competitive advantage, cash flow, capacity to produce
Marketing and service experience
Time investment, money and proper market selection

5. 2.1 Aspects of International Business
Trade Missions
Selected Canadian firms visit a targeted foreign country.
Trade Shows
Shows allow a potential purchaser to communicate with suppliers.

6. 2.1 Aspects of International Business
Foreign Investments
Public sector investments (putting money in govt- owned assets). Private sector investments (usually held in shares on the stock market)
FDIs occurs when a company establishes a subsidiary operation or joint venture in another country
Portfolio investment – An investor buys a share of a foreign company for a share of the profit and not a say in how the company is run.

7. 2.2 Why do Companies Expand Internationally?
Expand Markets and Increase sales
Controlling Expenses
Diversification
Competitiveness

8. 2.3 Reasons for recent Growth in International Business
Developments in communication technology
Time zones
Developments in transportation
Freer borders
Increased business confidence
Increased global competition

9. 2.4 Advantages of Doing Business in Canada
Lower Production and Business costs
Excellent Human resources
A positive business climate
Almost Seamless North American Markets
Good Infrastructure
Good Quality of life

10. 2.5 Preparing for the International Workplace
Benefits of Getting experience abroad
Experience in how other cultures do business
Knowledge of the world’s resources and global economy
Improve multi-cultural communications
Acquire business skills on a global level
Gain confidence in dealing with other countries

11. 2.5 Preparing for the International Workplace
GETTING EXPERIENCE AT HOME
RESEARCH RESOURCES :
Schools, public library
Newspapers, news and Internet
People in the business industry
Community organizations e.g. chamber of commerce

12. 2.5 Preparing for the International Workplace
Increasing your knowledge
Understand and respect other cultures
Have strong spoken and written language skills
Knowing a second language is very useful
Refining your skills
Learn how to problem-solve
Learn to use critical thinking
Show leadership qualities
Learn to clearly communicate a message
Learn to negotiate and resolve conflicts

13. 2.5 Preparing for the International Workplace
SKILLS INVENTORY
General traits – enjoy change, adventure open minded
Adaptation and coping skills – emotionally stable, ability to deal with stress
Intercultural communication skills and traits – tolerant, sensitive to others, listening/observing skills
Overseas work effectiveness skills – independence, self-discipline, resourcefulness

14. SCHOOLS
Grant MacEwan College (Alberta) – Asia pacific management, Bachelor of applied int’l business
Humber college (Toronto) – Certificates in specific areas of int’l business
Richard Ivey (Western Ontario) – Undergraduate and graduate programs in int’l business
University of Victoria (B.C) – International exchange programs and cultural liaison programs