INTERNATIONAL

BUSINESS

Lesson 1_CBM 321

 INTRODUCTION TO
INTERNATIONAL BUSINESS
 • Explain the features
of international
business
• Define the

LEARNING environmental
factors of
international
OBJECTIVES business
• Describe the reasons
and benefits why
organizations want
to internationalize
their business
 INTERNATIONAL
BUSINESS
‘Cross Border Economic Activity’
 INTERNATIONAL
BUSINESS
Refers to the exchange not only of physical
goods but also of services, capital, technology
and human resources.
 AN INTERNATIONAL BUSINESS HAS
MANY OPTIONS FOR DOING BUSINESS, IT
INCLUDES:
• Exporting goods and services.
• Giving license to produce goods in the host country.
• Starting a joint venture with a company.
• Opening a branch for producing and distributing goods
in the host country.
• Providing managerial services to companies in the host
country.
 ◦ Large scale operations
◦ Integration of economies of many
countries
◦ Dominated by developed countries
Features of and MNCs
◦ Benefits to participating countries
international ◦ Keen competition
business ◦ Special role of science and
technology
◦ International restrictions
◦ Sensitive nature
 ◦Basic Issues
◦The Economic
Environmental Environment
Factors of ◦The Political
International Environment
Business ◦The Legal
Environment
◦Social Structure