International business, 7e

INTERNATIONAL BUSINESS, 7e

• Czinkota
• Ronkainen
• Moffett

Chapter 1

• The International Business Imperative

Learning Objectives

• To understand the history and impact of international business.
• To learn the definition of international business.
• To recognize the growth of global linkages today.
• To understand the U.S. position in world trade and the impact international business has on the United States.
• To appreciate the opportunities and challenges offered by international business.

Need for International Business

• More and more firms around the world are going global, including:
• Manufacturing firms
• Service companies (i.e. banks, insurance, consulting firms)
• Art, film, and music companies

Need for International Business

• International business:
• causes the flow of ideas, services, and capital across the world
• offers consumers new choices
• permits the acquisition of a wider variety of products
• facilitates the mobility of labor, capital, and technology
• provides challenging employment opportunities
• reallocates resources, makes preferential choices, and shifts activities to a global level

What is International Business?

• International business consists of transactions that are devised and carried out across national borders to satisfy the objectives of individuals, companies, and organizations.

Types of International Business

• Export-import trade

• Foreign direct
• investment

• Licensing

• Franchising

• Management contracts