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International Environment of Business

CHAPTER 9. International Environment of Business. 9.1 Importance of International Business 9.2 Forms of International Business 9.3 Theories of International Trade and Investment. 9.1 Importance of International Business. GOALS

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International Environment of Business

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  1. CHAPTER9 International Environment of Business 9.1 Importance of International Business 9.2 Forms of International Business 9.3 Theories of International Trade and Investment

  2. 9.1Importance of International Business GOALS • Describe the nature, growth, and importance of international trade and investment. • Explain the reasons for the growth of international business. CHAPTER 9

  3. The Scope of International Business • Extent of international trade • Trade, investment, and the economy CHAPTER 9

  4. Reasons for Growth in International Business • Profit • Potential for sales CHAPTER 9

  5. Factors that Help Firms Engage in International Business • World Trade Organization (WTO) • Trading bloc • European Union (EU) • North American Free Trade Agreement (NAFTA) • International Monetary Fund (IMF) • World Bank CHAPTER 9

  6. 9.2 Forms of International Business GOALS • Distinguish between the different forms through which international business is conducted. • Describe the policies, rules, and laws that governments use to affect international trade and investment. CHAPTER 9

  7. Forms of International Business • Exporting • Importing • International licensing • Joint ventures • Wholly owned subsidiary • Strategic alliances • Multinational firm CHAPTER 9

  8. Government Policies • Trade barriers • Tariffs • Dumping • Quota • Nontariff barriers • Embargo • Sanctions • Currency values • Cultural differences CHAPTER 9

  9. 9.3 Theories of International Trade and Investment GOALS • Explain two theories of international trade. • Discuss the concepts of balance of payments and current accounts. • Consider career opportunities in international business and understand the factors related to being sent abroad on assignment. CHAPTER 9

  10. Theories of International Trade • Comparative advantage theory • Product life cycle theory CHAPTER 9

  11. Balance of Payments • Balance of payments • Current account • Capital account CHAPTER 9

  12. Career Opportunities in International Business • Working in the United States • U.S. Firms • Foreign firms • Working in another country • U.S. Firms • Foreign firms • Employment of international managers CHAPTER 9

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