International Business Basics

The Fundamentals of International Trade

What is international business?

It is all the business activities

to create, ship, and sell goods

and services across national borders.

International tradeForeign tradeGlobal business

Benefits

Provides raw materials & partsProvides global opportunitiesImproves political relations

Imports and Exports

Imports - bought from other countries

Exports - sold to other countries

Trade Barriers

Import taxes (tariffs)QuotasEmbargoes

International Business Environment4 major categories

Geographic Conditions

ClimateTerrain & seawaysNatural resourcesAgricultural products

Culture & Social Factors

LanguageEducationReligionValues & customsSocial relationships

Political & Legal Factors

Type of governmentPolitical stabilityGovernment policies toward business

Economic Conditions

Type of economic systemEducation levelTypes of industriesTechnology