CHAPTER 1 OVERVIEW OF INTERNATIONAL BUSINESS.pptx - MGT 361...

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MGT 361 International BusinessChapter 1:An Overview of International Business
By end of the chapter, students should be able to:Understand the meaning of International BusinessIdentifyanddescribethebasicformsofInternational Business activitiesIdentify the reasons why firms doing InternationalBusinessThe chapter objectives:
*IB consists of business transactions betweenparties from more than one country*The business transactions includes:*Buying materialsin one country and shipping themto another for processing or assembly (like Applecompany)*Shipping finished productsfrom one country toanother for retail sale (like high-end cars such asFerrari)*Building a plantin a foreign country (Samsung)*Borrowing money from banks in one country tofinance operation in anotherWhat is InternationalBusiness?
*Individual*Investors and businessmen*Companies*Private or public*Company Clusters*Alliance, subsidiaries, associates*Government Bodies*Central Bank*International Institution*World Bank, International Monetary FundParticipants
The Difference between DomesticBusinessand International BusinessDomestic BusinessInternational BusinessWithin boundaries of asingle country.Cross nationalboundaries.Business transaction is usually done inlocal currencies.The countries involved usedifferentcurrencies. At least one party has toconvert its currency into another.Business partners only comply withlocallegalsystems. Imposed by the government.Legal system may differin eachcountries. One or more parties have toadjust in order to comply with local law.Business management is easier in localenvironment. Only alocal culturesDifferent culturesin various countries willforce once party to adjust theirinternational business management.Local business are usually done accordingtoavailability of resource in the countryalone.Availability ofresources differsbycountry.
*Career Opportunities*To be prepared for a career in any facet of business world*Start own Business*Doing business with partners from other countries*Job Assignment*Work for a firm that is owned by corporation headquarters inanother country*To keep pace with future competitors*To ensure that you have global skills and knowledge to aidyour career*To keep track of latest business instruments*IB and companies keep improving their technologies,methods, processes and skills in conducting the business, sodo we*Cultural literacy*Understand and appreciate the similarities and differences ofvarious cultural backgroundsWhy study InternationalBusiness?
International BusinessActivitiesImportingInternationalInvestmentLicensingFranchisingManagementContractsExportingFDIPI
Exporting and ImportingExport

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Term
Spring
Professor
madam
Tags
Overview of International Business

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