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Meet 2

The document discusses the fundamentals of international business, including the reasons nations trade, the balance of trade, and the various barriers to international trade. It also outlines trade agreements and organizations that facilitate global commerce, as well as strategies for engaging in international business. Key concepts include exporting, importing, outsourcing, and the impact of economic, legal, and political factors on trade.

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19 views15 pages

Meet 2

The document discusses the fundamentals of international business, including the reasons nations trade, the balance of trade, and the various barriers to international trade. It also outlines trade agreements and organizations that facilitate global commerce, as well as strategies for engaging in international business. Key concepts include exporting, importing, outsourcing, and the impact of economic, legal, and political factors on trade.

Uploaded by

devina
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Meet 2

Business in a Borderless World

Compiled by:
Lecturer Team for Introduction to Small Business Development
Year 2024/2025
The Role of International Business
International business
The buying, selling, and trading of goods and services across national
boundaries
Why Nations Trade ?
• Absolute advantage monopoly
• Comparative advantage can supply more efficiently or at a lower cost
than other
• Outsourcing to countries where labor and supplies are less expensive.
Trade between Countries
• Exporting to foreign markets.
• Importing from foreign sources
Balance of Trade
The difference in value between a nation’s exports and its imports
• Trade deficit is a nation’s negative balance of trade, which exists
when that country imports more products than it exports.
Balance of Trade Cont’d
• Balance of payments the difference between the flow of money into
and out of a country.
International Trade Barriers
When a company decides to do business outside its own country, it will
encounter a number of barriers to international trade.
Economic Barriers
• Economic Barriers
Factor’s :
- Economic Development
- Infrastructure
- Exchange Rates.
Ethical, Legal, and Political Barriers
• Laws and Regulations.
• Tariffs and Trade Restrictions. (Import tariff, exchange, quota, etc)
• Political Barriers
• Social and Cultural Barriers
• Technological Barriers
Trade Agreements, Alliances,
and Organizations
• General Agreement on Tariffs and Trade (GATT)
• World Trade Organization (WTO)
• United States–Mexico–Canada Agreement (USMCA)
• European Union (EU)
• Asia-Pacific Economic Cooperation (APEC)
• Association of Southeast Asian Nations (ASEAN)
• World Bank
• International Monetary Fund (IMF)
Getting Involved in
International Business
• Exporting and Importing
• Trading Companies
• Licensing and Franchising
• Contract Manufacturing
• Outsourcing
• Offshoring
• Joint Ventures and Alliances
• Direct Investment
International Business
Strategies
• Developing Strategies
• Managing the Challenges of Global Business
TEAM /
Individu?
Thank You

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