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GISB102: INTERNATIONAL BUSINESSSpring 2018Sogang University GSISAn Overview ofInternational Business(Ch1)
2Q. Can you think of a company that is NOT doing businessinternationally?Q. What is your criteria for determining whether acompany is “international”?How can you determine the extent of a firm’s internationalorientation?
How “international” is Samsung Electronics?Q. How much of the company’s revenues are derived frominternational markets?3
How “international” is Samsung Electronics?4
What is International Business?Definition: Business transactions between parties frommore than one countryQ. How does international business differ from domesticbusiness?Within the boundaries of a single country? Across nationalborders?“National boundaries”National boundaries create many complexities:CurrencyLegal systemCultureAvailability of resources5
Exports of goods and services (% of GDP),1960-20166Source: World Bank
Forms of International Business Activity (1)Traditional forms of international business activityExportingSelling of products made in one’s own country for use/resale inother countriesImportingBuying of products made in other countries for use/resale in one’scountry2 categories: Merchandise vs. serviceMerchandise export & import: Trade in goods (i.e., tangibleproducts)Service export & import: Trade in services (i.e., intangible products)7
Forms of International Business Activity (2)International investmentsCapital supplied by residents of one country to residents ofanother2 types: FDI vs. FPIForeign Direct Investments (FDI): Investments made for thepurpose of actively controlling property, assets, or companieslocated in host countries; Direct investments in business operations in a foreign countryForeign Portfolio Investments (FPI): Purchase of foreign financialassets (i.e., stocks, bonds, and certificates of deposit) for apurpose other than control8
Evidence of globalization:Stock of FDI relative to world GDP9

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Term
Fall
Professor
NoProfessor
Tags
International Trade, Globalization, World Trade Organization, General Agreement on Tariffs and Trade

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