Principles of Business, Marketing, and
Finance
Lesson Six
The Foundation of International Business
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International Business
• All activities needed to create, ship, and sell
goods and services across national borders
• Also referred to as global business, international
trade, and foreign trade
• Importance of international business
–
–
–
–
Source of raw materials
Supplier of foreign products
New market and investment opportunities
Improved political relations
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History of International
Business
• Roman Empire-more than 15,000 years ago
dominated international business for more than
600 years
• Eleventh Century
– Renewed interest in global commercialism
– 1500-1900: several European countries established
colonies in Africa, Asia, North America, and South
America
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International Business
Basics
• Trade activities
-viewed from the side of the
buyer and the seller
• Imports
-products bought from
businesses in other countries
• Exports
-products sold in other
countries
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Four Major Categories of the
International Business
Environment
•
•
•
•
Geographic conditions
Cultural and social factors
Political and legal factors
Economic conditions
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Trade Barriers
• Attempts to protect
domestic business
– Quota-limit the amount
of trade
– Tariff-tax on imports
– Embargo-refuse trade
with another country
usually for political
reasons
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Copyright © Texas Education Agency, 2011. All rights reserved
Helpful Knowledge for
International Business
•
•
•
•
•
History
Geography
Foreign Language
Culture
Study Skills
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Advantage of International
Business
• Consumer-has more
choices
• Citizen-has increased
awareness of the
world
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