We are moving away from a world in which national economies were relatively
self contained entities, and moving toward a world in which barriers to cross
border trade and investment are declining.
$3 trillion in foreign exchange tr
Developing a prospect base
3 basic qualifications
Ability- how much can a person spend
Authority- ability to sign on the dotted line
Common causes of customer attrition
Business closes or merges
Buyer leaves position
Sales and sales management
Which of the four Ps is the focus on today? Price
Developing a product strategy
Become a product expert
Sell benefits not features
Configure-value added solutions
Developing a presentation strategy
PROVE the product/service
In 1881, religious leader Muhammad ibn Abdalla went on a religious crusade to unify the tribes in
Western and Central Sudan.
In February 1953, the United Kingdom and Egypt concluded an agreement providing Sudan with a selfgovernment and self-deter
Human Resource Management: the activities an organization carries out to use its human resources
o Includes determining the firms human resource strategy, staffing, performance evaluation,
management development, comp
Marketing Mix: choices about product attributes, distribution strategies, communication strategies, and
pricing strategies that a firm offers its targeted markets.
The Globalization of Markets and Brands
Theodore Levitt wrote abo
Strategy, Production and Logistics
Production: The activities involved in creating a product.
Logistics: the procurement and transmission of material through the supply chain, from suppliers to
Production and logistic
Modes for serving foreign markets
o Licensing or franchising to host country firms
o Establishing joint ventures with a host country firm
o Setting up a new wholly owned enterprise in a host nation.
GE enters foreign
Floating Exchange Rate: a system under which the exchange rate for converting one currency into
another is continuously adjusted depending on the law of supply and demand.
o The dollar, the Euro, the Yen and the Pound are all free
Foreign Exchange Market: a market for converting the currency of one country into that of another
o Provide some insurance against the risks that arise from such volatile changes is exchange rates,
commonly referred to as
Regional Economic Integration: agreements among countries in a geographic region to reduce and
ultimately remove, tariff and non tariff barriers to the free flow of goods, services and factors of
production between each other.
Direct foreign investment occurs when a firm invests directly in facilities to producer or market a
product in a foreign country.
o Occurs when an interest of 10% or more in a foreign business entity.
FDI takes on 2 forms
Free Trade: the absence of barriers to the free flow of goods and services between countries.
o Static economic gains free trade supports a higher level of domestic consumption and more
efficient utilization of resources
An overview of Trade Theory
Mercantilism in the 16th and 17th centuries advocated that countries should simultaneously encourage
exports and discourage imports.
Adam Smits theory of absolute advantage. Explained why unrestricted free trade is
Business Ethics: the accepted principals of right or wrong governing the conduct of
Ethical Strategy: a course of action that does not violate ethical principals.
Ethical Issues in International Business
In the i
Cross-cultural literacy: an understanding of how cultural differences across and within
nations can affect the way business is practiced.
o Guanxi network of social relationships with others backed by reciprocal
obligations are cen
Political Economy: the interdependent combination of a countrys political, economic and legal
Political Systems: the system of government in any nation.
o Collectivism as opposed to individualism
o Democratic or t
D efine privatization, globalization and liberalization. G ive an example o f each one from your
c urrent event reading in the Wall Street Journal.
Privatization the sale of state owned enterprises to private investors. It transfers the owner