Professional Documents
Culture Documents
CHP6
CHP6
CHP6
Global Edition
Part One
Background For International Business
1-1
Copyright © 2011 Pearson Education
Chapter 1
Globalization
and International
Business
1-2
Copyright © 2011 Pearson Education
Chapter Objectives
1-4
Copyright © 2011 Pearson Education
International Business
1-5
Copyright © 2011 Pearson Education
Studying International Business is
Important
Most companies are either international or
compete with international companies
Modes of operations may differ from those used
domestically
The best way of conducting business may differ
by country
An understanding helps you make better career
decisions
An understanding helps you decide what
government policies to support
1-6
Copyright © 2011 Pearson Education
International Business:
Operations and Influences
1-7
Copyright © 2011 Pearson Education
Measuring Globalization
1-8
Copyright © 2011 Pearson Education
Factors Contributing to Rapid Growth of
International Business
1. Increase in and expansion of
technology
2. Liberalization of cross-border trade and
resource movements
3. Development of services that support
international business
4. Growing consumer pressures
5. Increased global competition
6. Changing political situations
7. Expanded cross-national cooperation 1-9
Copyright © 2011 Pearson Education
What’s Wrong with Globalization
1-10
Copyright © 2011 Pearson Education
Companies Engage in International
Business
To Expand Sales: pursuing international sales
increases the potential market and potential
profits
To Acquire Resources: may give companies
lower costs, new and better products,
additional operating knowledge
To Diversify or Reduce Risks: international
operations may reduce operating risk by
smoothing sales and profits, preventing
competitors from gaining advantage
1-11
Copyright © 2011 Pearson Education
Modes of Operation in International
Business
1-12
Copyright © 2011 Pearson Education
Multinational Enterprises
1-13
Copyright © 2011 Pearson Education
Difference Between International and
Domestic Operations
When operating abroad companies may
have to adjust their usual methods of
carrying out business.
1-14
Copyright © 2011 Pearson Education
Physical and Social Factors Affecting
International Business Operations
1-15
Copyright © 2011 Pearson Education
Physical and Social Factors Affecting
International Business Operations
1-
Copyright © 2011 Pearson Education 156
Competitive Factors Affecting
International Business
1-17
Copyright © 2011 Pearson Education
Competitive Factors Affecting
International Business
1-18
Copyright © 2011 Pearson Education
Future of International Business and
Globalization
1-19
Copyright © 2011 Pearson Education
All rights reserved. No part of this publication may
be reproduced, stored in a retrieval system, or
transmitted, in any form or by any means,
electronic, mechanical, photocopying, recording,
or otherwise, without the prior written permission
of the publisher. Printed in the United States of
America.
1-20
Copyright © 2011 Pearson Education