CHAPTER
1
We Live in a Global
Economy
1-1 The Foundation of
International Business
1-2 International Business Basics
© 2011 South-Western | Cengage Learning
CHAPTER
INTERNATIONAL BUSINESS, 4e
1
LESSON 1-1
The Foundation of International
Business
GOALS
 Distinguish between domestic
business and international
business.
 Discuss the reasons why
international business is important.
 Understand that international trade
is not just a recent event.
© 2011 South-Western | Cengage Learning
SLIDE 2
CHAPTER
INTERNATIONAL BUSINESS, 4e
1
What Is International Business?
 All business activities needed to create,
ship, and sell goods and services across
national borders
 Also called
 Global business
 International trade
 Foreign trade
© 2011 South-Western | Cengage Learning
SLIDE 3
CHAPTER
INTERNATIONAL BUSINESS, 4e
1
Why Is International Business
Important?
 Materials, parts, and demand
 Global opportunities
 Improved political relations
© 2011 South-Western | Cengage Learning
SLIDE 4
CHAPTER
INTERNATIONAL BUSINESS, 4e
1
When Did International Business
Start?
 China, India, and Japan 15,000 years ago
 Africa and South America thousands of
years ago
 Eleventh century
 Fifteenth and sixteenth centuries
 Colonization
© 2011 South-Western | Cengage Learning
SLIDE 5
CHAPTER
INTERNATIONAL BUSINESS, 4e
1
Selected Countries and Their
Colonial Heritage
Country
Colonized By
Year of
Independence
Australia
United Kingdom
1901
Brazil
Portugal
1822
Cambodia
France
1953
Canada
France, United Kingdom
1867
Chad
France
1960
Chile
Spain
1818
Cyprus
Turkey, United Kingdom
1960
El Salvador
Spain
1821
Continued on next slide
© 2011 South-Western | Cengage Learning
SLIDE 6
CHAPTER
INTERNATIONAL BUSINESS, 4e
1
Selected Countries and Their
Colonial Heritage
Continued from previous slide
Country
Colonized By
Year of
Independence
Iceland
Norway, Denmark
1944
Mexico
Spain
1821
Mozambique
Portugal
1975
Namibia
Germany, South Africa
1990
South Africa
United Kingdom, Netherlands
1910
United States
United Kingdom, France,
Spain, Russia
1776
Vietnam
France
1955
© 2011 South-Western | Cengage Learning
SLIDE 7
CHAPTER
INTERNATIONAL BUSINESS, 4e
1
LESSON 1-2
International Business Basics
GOALS
 Describe basic inter-national
business activities.
 Explain the components of the
international business environment.
 Name important skills for
international business and describe
the importance of international
business for workers, consumers,
and citizens.
© 2011 South-Western | Cengage Learning
SLIDE 8
CHAPTER
INTERNATIONAL BUSINESS, 4e
1
The Fundamentals of International
Trade
 Imports
 Exports
 Trade barriers
© 2011 South-Western | Cengage Learning
SLIDE 9
CHAPTER
INTERNATIONAL BUSINESS, 4e
1
The International Business
Environment
 Geographic conditions
 Cultural and social factors
 Political and legal factors
 Economic conditions
© 2011 South-Western | Cengage Learning
SLIDE 10
CHAPTER
INTERNATIONAL BUSINESS, 4e
1
The International Business
Environment
GEOGRAPHIC CONDITIONS
● Climate
● Terrain and seaways
● Natural resources
● Agriculture products
CULTURAL & SOCIAL FACTORS
● Language
● Education
● Religion
● Values and customs
● Social relationships
POLITICAL & LEGAL FACTORS
● Type of government
● Political stability
● Government policies toward
business
ECONOMIC CONDITIONS
● Type of economic system
● Education level
● Type of industries
● Technology
© 2011 South-Western | Cengage Learning
SLIDE 11
CHAPTER
INTERNATIONAL BUSINESS, 4e
1
The Global Business World
 International business skills
 History
 Geography
 Foreign language
 Cultural awareness
 Study skills
 The global citizen
© 2011 South-Western | Cengage Learning
SLIDE 12