Ch 1 - Overview of International Business (2) - CHAPTER 1...

CHAPTER 1
OVERVIEW OF INTERNATIONAL BUSINESS
Business of the Olympics:
• Intense reflection of international business
• Government of games by IOC
• Competition for hosting
• Revenue sources for the Olympics
o Broadcast rights
o Corporate sponsorships
What is International Business?
• Business transactions between parties from more than one country
• Parties may include
• Private individuals
o Individual companies
o Groups of companies
o Governmental agencies
• International vs Domestic Business?
o Currency conversion
o Legal systems
o Culture
o Availability of resources
• Why Study International Business?
o Large organizations
o Foreign-owned subsidiaries
o Small businesses
o Competitors
o Business techniques and tools
o Cultural literacy
• International Business Activities:
o Exporting and Importing
o International Investments
o
Licensing: firm in one country licenses the use of its intellectual property to a
firm in a second country in return for a royalty payment
o