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Business Management, 13e

International Environment of Business9.1 Importance of International Business9.2 Forms of International Business9.3 Theories of International Trade and

Investment

CHAPTER

9

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Business Management, 13e

CHAPTER 9

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.

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Business Management, 13e

CHAPTER 9

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The Scope of International Business

● Extent of international trade● Trade, investment, and the economy

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Business Management, 13e

CHAPTER 9

4

Reasons for Growth in International Business

● Profit● Potential for sales

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Business Management, 13e

CHAPTER 9

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

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Business Management, 13e

CHAPTER 9

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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.

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Business Management, 13e

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Forms of International Business

● Exporting● Importing● International licensing● Joint ventures● Wholly owned subsidiary● Strategic alliances● Multinational firm

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Business Management, 13e

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Government Policies

● Trade barriers● Tariffs● Dumping● Quota● Nontariff barriers● Embargo● Sanctions

● Currency values● Cultural differences

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Business Management, 13e

CHAPTER 9

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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.

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Business Management, 13e

CHAPTER 9

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Theories of International Trade

● Comparative advantage theory● Product life cycle theory

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Business Management, 13e

CHAPTER 9

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Balance of Payments

● Balance of payments● Current account● Capital account

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Business Management, 13e

CHAPTER 9

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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