Business Management, 13e
CHAPTER
9
International
Environment of Business
9.1 Importance of International Business
9.2 Forms of International Business
9.3 Theories of International Trade and
Investment
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Business Management, 13e
2
9.1 Importance of International
Business
DLTs
● Describe the nature, growth, and importance
of international trade and investment.
● Explain the reasons for the growth of
international business.
CHAPTER 9
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Business Management, 13e
3
The Scope of International Business
● Extent of international trade
● Trade, investment, and the economy
CHAPTER 9
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Business Management, 13e
4
Reasons for Growth in International
Business
● Profit
● Potential for sales
CHAPTER 9
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Business Management, 13e
5
Factors that Help Firms Engage in
International Business
● World Trade Organization (WTO)
● Trading bloc
● European Union (EU)
● North American Free Trade Agreement
(NAFTA)
● International Monetary Fund (IMF)
● World Bank
CHAPTER 9
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Business Management, 13e
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9.2 Forms of International Business
DLTs
● Distinguish between the different forms
through which international business is
conducted.
● Describe the policies, rules, and laws that
governments use to affect international trade
and investment.
CHAPTER 9
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7
Forms of International Business
● Exporting
● Importing
● International licensing
● Joint ventures
● Wholly owned subsidiary
● Strategic alliances
● Multinational firm
CHAPTER 9
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Business Management, 13e
8
Government Policies
● Trade barriers
● Tariffs
● Dumping
● Quota
● Nontariff barriers
● Embargo
● Sanctions
● Currency values
● Cultural differences
CHAPTER 9
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Business Management, 13e
9
9.3 Theories of International Trade
and Investment
DLTs
● Explain two theories of international trade.
● Discuss the concepts of balance of payments
and current accounts.
● Consider career opportunities in international
business and understand the factors related to
being sent abroad on assignment.
CHAPTER 9
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Business Management, 13e
10
Theories of International Trade
● Comparative advantage theory
● Product life cycle theory
CHAPTER 9
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Business Management, 13e
11
Balance of Payments
● Balance of payments
● Current account
● Capital account
CHAPTER 9
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Business Management, 13e
12
Career Opportunities in International
Business
● Working in the United States
● U.S. Firms
● Foreign firms
● Working in another country
● U.S. Firms
● Foreign firms
● Employment of international managers
CHAPTER 9
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