BBB4M
CHAPTER 2
2.1 Aspects of
International Business
• International Business is all the activities
needed to get a product to consumers. It
involves trade, importing, exporting, use of
foreign assets and foreign investment.
• International Trade – involves companies in
one country fulfilling the needs and wants of
another by selling products to groups
(exporting) and vice versa (importing)
2.1 Aspects of
International Business
• Importing
• To bring products or services into a country, for
use by another business or for resale.
• There must be a known demand for the product
• The majority of the goods that Canada imports
come from the united states
• Global Sourcing
• The process of a company buying equipment,
capital goods, raw materials, or services from
around the world.
2.1 Aspects of
International Business
• Exporting
• To send goods or services to another country, for
use by a business or for resale.
• STARTING AN IMPORT/EXPORT BUSINESS
• Being ready : Management commitment,
competitive advantage, cash flow, capacity to
produce
• Marketing and service experience
• Time investment, money and proper market
selection
2.1 Aspects of
International Business
• Trade Missions
• Selected Canadian firms visit a targeted foreign
country.
• Trade Shows
• Shows allow a potential purchaser to
communicate with suppliers.
2.1 Aspects of
International Business
• Foreign Investments
• Public sector investments (putting money in govtowned assets). Private sector investments (usually
held in shares on the stock market)
• FDIs occurs when a company establishes a
subsidiary operation or joint venture in another
country
• Portfolio investment – An investor buys a share of
a foreign company for a share of the profit and
not a say in how the company is run.
2.2 Why do Companies
Expand Internationally?
• Expand Markets and Increase sales
• Controlling Expenses
• Diversification
• Competitiveness
2.3 Reasons for recent Growth in
International Business
• Developments in communication technology
• Time zones
• Developments in transportation
• Freer borders
• Increased business confidence
• Increased global competition
2.4 Advantages of Doing
Business in Canada
• Lower Production and Business costs
• Excellent Human resources
• A positive business climate
• Almost Seamless North American Markets
• Good Infrastructure
• Good Quality of life
2.5 Preparing for the
International Workplace
• Benefits of Getting experience abroad
 Experience in how other cultures do business
 Knowledge of the world’s resources and global
economy
 Improve multi-cultural communications
 Acquire business skills on a global level
 Gain confidence in dealing with other countries
2.5 Preparing for the
International Workplace
GETTING EXPERIENCE AT HOME
RESEARCH RESOURCES :
• Schools, public library
• Newspapers, news and Internet
• People in the business industry
• Community organizations e.g. chamber of
commerce
2.5 Preparing for the
International Workplace
• Increasing your knowledge
 Understand and respect other cultures
 Have strong spoken and written language skills
 Knowing a second language is very useful
• Refining your skills
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Learn how to problem-solve
Learn to use critical thinking
Show leadership qualities
Learn to clearly communicate a message
Learn to negotiate and resolve conflicts
2.5 Preparing for the
International Workplace
• SKILLS INVENTORY
 General traits – enjoy change, adventure open
minded
 Adaptation and coping skills – emotionally
stable, ability to deal with stress
 Intercultural communication skills and traits –
tolerant, sensitive to others,
listening/observing skills
 Overseas work effectiveness skills –
independence, self-discipline, resourcefulness
SCHOOLS
• Grant MacEwan College (Alberta) – Asia pacific
management, Bachelor of applied int’l business
• Humber college (Toronto) – Certificates in specific
areas of int’l business
• Richard Ivey (Western Ontario) – Undergraduate
and graduate programs in int’l business
• University of Victoria (B.C) – International
exchange programs and cultural liaison programs