The Local And International

Business Environment of a Firm

Objectives
Describe the local and international business environment of a firm

Describe International Compare and contrast Local to

Business International Business

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Main Idea
An important factor in the management of any organization is the increasing
internationalization of business activities

These activities present new challenges that must be overcome

by managers.

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Key Concept
The trading of goods and services across national
boundaries result from the principle of competitive
advantage

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Key Terms
Exporting Refers to the selling of an organization's
goods in another country

Importing Is the purchasing of goods and services

from a foreign company.

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Key Terms

is defined as any business

MULTINATIONAL that maintains a
CORPORATIONS production, assembly,
(MNC) sales or service presence in
two or more countries.

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 Review the
international business
concept
Discussion
Starter
“How will you handle
local and international
business
environments?”
 Exporting

International
Business

Manufacturing Importing

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 Requires Export-
International
special import
business
experts manager

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-It will take 17 procedures and 80 days to establish foreign owned
business.

-In the Philippines, constitution prohibits foreign companies from

buying land.

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 Home market vs. Production efficiency

Seasonal and irregular product

Reasons for
Exporting Product life cycle

Competition

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 Needs vs. Availability

Reasons for Prestige value

importing
Less expensive

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Questions
GROUP ACTIVITY: VENN DIAGRAM
*Compare and contrast importation and exportation in the
Philippines

*Site advantages and disadvantages of each

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