Chapter 1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 1 - 1 An Overview of International Business
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Chapter 1 - 1
Chapter 1
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
An Overview of International Business
Chapter 1 - 2
Learning Objectives
• Discuss international business• Explain the importance of international
business• Identify and describe the basic forms of
international business activities• Discuss the causes of globalization• Understand the growing role of emerging
markets in the global economyCopyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Chapter 1 - 3
What Is International Business?
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Chapter 1 - 4
Differences in Domestic and International Business
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Boundaries Currencies
Legal Systems Cultures
Resources Skills and Knowledge
Chapter 1 - 5
Summary of Discussion
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Chapter 1 - 6
Why Study International
Business?
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Chapter 1 - 7Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Motivation for Study
• Business Skills
• Future Competitors
• Business Techniques
• Cultural Literacy
Chapter 1 - 8
Summary of Discussion
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Chapter 1 - 9
International Business Activities
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Chapter 1 - 10
Exporting and Importing
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Tangible Intangible
Merchandise
Visible Trade
Services
Invisible Trade
Chapter 1 - 11
International Investments
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Supply of Investment Capital
For the Purpose of Active Control
For a Purpose Other than Control
FDI FPI
Chapter 1 - 12Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
International Licensing
International Franchising
Management Contracting
Other Business Activity
Chapter 1 - 13
International Business
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Cross-Border Commercial Transactions
Multinational Corporation (MNC)
Multinational Enterprise (MNE)
Multinational Organization (MNO)
Chapter 1 - 14
Summary of Discussion
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Chapter 1 - 15
The Era of Globalization
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Chapter 1 - 16Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
World Exports as a Percentage of World GDP
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 20100.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
World Exports of Goods World Exports of Goods and Services
Wor
ld E
xpor
ts/W
orld
GD
P
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1980 1985 1990 1995 2000 2005 20100.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
FDI/
Wor
ld G
DP
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Stock of FDI Relative to World GDP
Chapter 1 - 18
Environmental Changes
Strategic Imperatives
The Contemporary Causes of
Globalization
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Chapter 1 - 19
Strategic Imperatives
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Core Competency
Resources and Supplies
Industry RivalsNew Markets
Chapter 1 - 20
Environmental Causes of Globalization
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Political Changes
General Agreement on Tariffs and Trade (GATT)
The World Trade Organization (WTO)
European Union, Mercosur Accord, and NAFTA
Chapter 1 - 21
Environmental Causes of Globalization
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Technological Changes
Improved Communication Technology
Improved Transportation Methods
Improved Information Processing
Chapter 1 - 22
Summary of Discussion
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Chapter 1 - 23
Globalization and Emerging Markets
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Chapter 1 - 24Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
• First World
• Second World
• Third World
The Global Marketplace During
the Cold War
Chapter 1 - 25
Emerging Markets
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
•BRIC Countries
•Big Ten Countries
•Non-High Income Countries
Chapter 1 - 26
Summary of Discussion
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Chapter 1 - 27
An Overview of the Contents of This Book
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Chapter 1 - 28
Part 1: Includes Chapters 1 – 5
Part 2: Includes Chapters 6 – 10
Part 3: Includes Chapters 11 – 15
Part 4: Includes Chapters 16 – 19
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Structure of the Contents
Chapter 1 - 29
Summary of Discussion
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Chapter 1 - 30
Chapter 1
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
An Overview of International Business
Chapter 1 - 31Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
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