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Inc. All rights reserved.

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 What We Are Striving To Accomplish

1. Defining international business

2. To recognize today's global linkage that drives nations and firms to
operate across borders
3. To understand the U.S. position in world trade and the impact
international business has on the nation
4. To consider the effects of global concerns about uncertainty, risk,
and terrorism on international business

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 Globalization

Awareness,
understanding, and
response to global
developments linkages.

SOURCE: IMF Homepage, April 18,2003

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 International Business Results

Innovations
Faster dissemination of goods
Faster dissemination of
information
Efficient use of human capital
Improved access to financing

SOURCE: http://www.jnto.go.jp/, April 18, 2003

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 International Business Types

• Import-export
– sale and purchase of tangible goods and services
to and from another country.
• Foreign direct investment
– establishment or expansion of operations in a
foreign country.

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 Global Links Today

The United Nations

• The volume of international trade
in goods and services has
expanded from $200 billion to
more than $7.6 trillion.
• The value of trade has greatly
exceeded the level of overall world
output.
• Sheer volume and value of trade
has led to a network of worldwide
links.

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 Today global strategies, coupled
with production and distribution
sharing are common.
Firms also link together through
global supply agreements and
joint undertakings.

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 Gross Domestic Product

• Total value of goods and services produced in a country in a

year.
• U.S. has gained as a prominent market but some importance
as a supplier.
• U.S. export growth has not kept pace with total growth of world
trade.

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 The Need For Global Trade
Good for job creation

Bring in wide range of products & services to a country

Exert pressure on domestic products to improve

Expand consumer choices

Improve standard of living

Allows for economies of scale

Allows firms to hone their competitive skills abroad

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 Global Business Levels

 Macroeconomic level,the level at which trading relationships affect individual

markets.
 Microeconomic level, business concerns that affect an individual firm or
industry.

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 Exports & Imports per Capita for
Selected Countries (US $)

The table shows the degree to which the U.S. comparatively “under participates” in international
business on a per capita basis.

SOURCES:http://www.wto.org, February 13, 2001; CIA “The World Factbook, 200,” http://www.cia.gov, February 13 2002;
http://www.stat.com, March 20, 2001.

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 Most Admired Global Companies

• The most admired

corporations worldwide are
substantial exporters and
international investors

SOURCE: Based on Fortune, September 29, 2002, http://www.fortune.com

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 Risk and Uncertainty

International Reaction

Vulnerability Outrage Collaboration Politics Connection

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 Important International Questions

1. Is our product in demand abroad?

2. What must I do to get ready to market internationally?

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