International Environment of Business

Try AgainWritten agreements are extremely important in the Middle East and it will not be signed until all aspects have been reviewed and the business partners are satisfied. Try AgainThe Top Ten Countries the US trade with in March 2011:Source: Us Census Bureau http://www.census.gov/foreign-trade/top/dst/current/balance.htmlForms of International Trade Cont.Joint VenturesWhen two or more firms share the cost of doing business and also share the profits. Wholly-owned SubsidiaryWhen a firm sets up a business abroad without any partners. Strategic AllianceFirms agree to cooperate on certain aspects of business while remaining competitors on other aspects.

Source: E., L., and Burrow, 86Business in ChinaSource: InBusinessTV

Click video to learn about business in China.Cultural Differences Low Context CultureA person is expected to come to the point directly and not beat around the bush

High Context CultureCommunication tends to occur through non-verbal signs and indirect suggestions

Source: E., L., and Burrow, 94Photos: Rumsey, DReview TimeWhich of the four places would a Texas based company have to trade with another company in order for it to be considered international business?

New MexicoAlaskaMexicoMichiganCorrect!Mexico is not part of the United States; therefore, 2 countries are doing business with one another. Click here for the next questionTry Again. In high context cultures communication tends to occur through non-verbal signs and indirect suggestions and in the United Stated communication tends to be very direct. Try Again!