1. INTERNATIONAL BUSINESS
 International business consists of all commercial
transactions between two or more countries.
 Today global events and competition affect almost all
companies large and small because most sell output to
and secure supplies from foreign countries.
 Many companies also compete against products and
services that come from abroad
 Thus most managers, regardless of industry or
company size, need to approach their operating
strategies from an international standpoint.

2. It refers to the integration of world economies through
the reduction of barriers to the movement of trade,
capital, technology and people

3. Forces driving globalisation
 Increase in and expansion of technology
 Liberalisation of cross border trade and resource
movement.
 Development of services that support international
business
 Growing consumer pressures
 Increased global competition
 Changing political situations
 Expanded cross national cooperation.

4. Arguments against globalization
 Threats to national sovereignty
 Economic growth and environmental stress
 Growing income inequality

5. Threats to national sovereignty
 Harm to the local objectives and policies
 Local overdependence
 Threat to cultural homogeneity

6. Economic growth and environmental
stress
 As globalization brings in growth, it consumes more
non renewable resources and increases environ mental
damage.
 Water pollution through toxic and pesticide runoffs
into rivers and oceans
 Air pollution from factory and vehicle emissions
 Deforestation

7. Growing income inequality
 GDP rising but the benefits do not percolate to level of
the ordinary masses.

8. Why international business
 To create value for their organisation
 Expanding sales
 Acquiring resources
 Minimising risk

9. Modes of operation in
international business
 Merchandise exports and imports
 Service exports and imports
 Investments

10. Merchandise exports and imports
 Merchandise exports are tangible products that are
sent out of a country
 Merchandise imports are goods bought in a country
 Because we can actually see these goods as they leave
and enter the country, we sometimes call them visible
exports and imports.

11. Service exports and imports
 When we refer to non product international earnings
we use the term service exports and imports.
 The company or individual that provides the service
and receives payments makes a service export.
 The company or individual that receives the service
and pays for it makes a service import.
 It can be of three forms :- Tourism and transportation,
Service performance , Asset use.

12. Investments
 Foreign investment means ownership of foreign
property in exchange for a financial return such as
interest and dividends.
 It can be of two forms :- Direct investment & Portfolio
investments.

13. How international business differs
from domestic business
 Physical and social factors
• Geographic influences
• Political policies
• Legal policies
• Behavioral factors
• Economic forces

14.  The competitive environment
• Competitive strategy for products
• Company resource and experience
• Competitors faced in each market