INTERNATIONAL CHAPTER

ENVIRONMENT OF 4
BUSINESS
OBJECTIVES
 Describe the nature, growth, and importance of international
trade and investment.
 Distinguish between the different forms through which
international business is conducted.
 Identify common barriers to international business and
reasons for growth.
 Explain two theories of international trade.
 Discuss the concepts of balance of trade and balance of
payments.
 Consider career opportunities in international business and
understand the factors related to being sent abroad on
assignment.

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IMPORTANCE OF
INTERNATIONAL BUSINESS
 Extent of international trade
 Trade, investment, and the economy
 Top 10 countries with which U.S. trades
Canada
Mexico
Japan
China
Germany
United Kingdom
Taiwan
South Korea
France
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FORMS OF
INTERNATIONAL BUSINESS
 Exporting
 Importing
 International licensing
 Joint venture
 Wholly-owned subsidiary
 Strategic alliance

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MULTINATIONAL
FIRMS
 Home country
 Host country
 Parent firm
 Subsidiaries

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INTERNATIONAL TRADE
CHALLENGES
 Government policies
 Dumping
 Quota
 Non-tariff barriers
 Embargo
 Sanctions
 Currency values
 Cultural differences
 Low-context culture
 High-context culture
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REASONS FOR GROWTH IN
INTERNATIONAL BUSINESS
 World Trade Organization (WTO)
 Trading bloc
 European Union (EU)
 North American Free Trade Agreement
(NAFTA)
 International Monetary Fund (IMF)
 World Bank

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THEORIES OF INTERNATIONAL
TRADE AND INVESTMENTS
 Comparative advantage theory
 Product life cycle theory

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BALANCE
OF TRADE
 Balance of payments
 Current account
 Capital account

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CAREER OPPORTUNITIES IN
INTERNATIONAL BUSINESS
 Exporting and importing
 Teaching and translating
 Administering trade laws
 Managing foreign offices and operations
 Banking and insurance
 International trade organizations
 Government agencies

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EMPLOYMENT OF
INTERNATIONAL MANAGERS
 Adaptability
 Citizenship
 Culture shock

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