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Lesson One Introduction to International Business International Trade International business 1. What is international business? All commercial transactions between two or more countries or the transactions that take place across national borders. Circulation of goods, capital, services, employees technology; Importing exporting Cross-border transaction in IPR by means of licensing franchising: Investment in physical financial assets in foreign countries Contract manufacturer or assembly of goods abroad for local sale or for exports to other countries Establishment of foreign warehousing distribution system 2. Modes of IB Merchandise service: importing exporting Direct investment portfolio investment licensing franchising Turnkey operation. Management contracts 3. The need for IB a. to countries: b. to companies: c. to consumers: d. to individuals: e. to learners: 4. International business trade Figure A: Figure B: International Trade 1. What is international trade? Exchange of goods services between nations, also known as international trade or overseas trade. Keys: All business transactions involving at least two countries Any type of trade activities that cross national borders Issues: How will idea, good or service fit into international market? Should we enter the market through trade/investment? What product adjustments to be responsive to local conditions? What threats from global competition should be expected? How can these threats be counteracted? 2. Main aspects of international trade 1. The classification of the international trade 2. Some important theories of international trade 3. Instruments of trade policy 4. Economic integration, special types 5. International capital movements FDI 6. International institution, 7. International trade terms. 8. Transportation insurance 9. International trade payment 10. Inspection,
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