UNIT 2 INTERNATIONAL BUSINESS THEORIES International Business (Trade) Theories Objectives After reading this unit, you should be able to : • understand the analytical foundations of international business • be familiar with the international trade theories • explain the FDI approaches to international business. Structure 2.1 Foundations of International Business 2.2 International Trade Theories Theory of Mercantilism Theory of Absolute Cost Advantage Theory
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INTERNATIONAL BUSINESS Definition of international business International business involves commercial activities that cross national frontiers. It concerns the international movement of goods, capital, services, employees and technology; importing and exporting; cross-border transactions in intellectual property (patents, trademarks, know-how, copyright materials, etc.) via licensing and franchising; investments in physical and financial assets in foreign countries; contract manufacture or
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The International Business begin to boom in the 1900s and the early 2000s, Bubba’s Bakery decides to expand its franchise to include European markets. One of the negative obstacles the bakery may encounter is going out of business. Bubba’s Bakery wants to experience and take advantages of the market world and the increasingly opportunity to international expansion and trade. The obstacles to free trade are sent through with the agreement on Tariffs and trade between the North America Free Trade
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International Marketing Environment Jessica Bell International Marketing (MKT 320) Professor Dr. Johnnie Woodard July 20, 2011 Explain the role of government in international trade, the various levels of economic integration and the impact on international marketing. According to the business dictionary, International trading is the exchange of goods or services along international borders that allows for greater competition and
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AND THE MULTINATIONAL FIRM SUGGESTED ANSWERS TO END-OF-CHAPTER QUESTIONS QUESTIONS 1. Why is it important to study international financial management? Answer: We are now living in a world where all the major economic functions, i.e., consumption, production, and investment, are highly globalized. It is thus essential for financial managers to fully understand vital international dimensions of financial management. This global shift is in marked contrast to a situation that existed when the authors
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Chapter 2 International Flow of Funds Lecture Outline Balance of Payments Current Account Capital and Financial Accounts International Trade Flows Distribution of U.S. Exports and Imports U.S. Balance of Trade Trend International Trade Issues Events That Increase International Trade Trade Friction Factors Affecting International Trade Flows Impact of Inflation Impact of National Income Impact of Government Policies
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Globalisation 1 Lecture/Chapter Topics • Chapter Introduction • Definition of Globalisation • Emergence of Global Institutions • Driving Forces of Globalisation • Changing Characteristics of Global Economy • Globalisation Debate • Managing in Global Marketplace Definition of Globalisation • • Globalisation: the trend towards a more integrated global economic system Effects of globalisation can be seen everywhere, for example: – – – – the cars people drive the
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International Business ManagementRegional Trading Blocs | | | | | | | | Table of contents Introduction……………………………………………….……………………. 3 Section one...…………………………………………………………………….4 Section two …………………………………………...……………………...….7 Section three ……………………………….………........………………...….10 Conclusion …………………………………………………………….......…..11 References …………………………………………………………………..…12 Introduction Regional trading blocs have originally emerged since late 1950s, and overtime
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foster international trade. Many developing countries adopted protectionist policies and raised huge tariff barriers for decades to protect their vulnerable home industries from foreign goods. Global business opportunities were also limited by poor communication facilities, slow development of infrastructure, inordinate delays in travel and shipping and a host of non-tariff trade barriers raised by many countries. Today, people can reach any place on the globe in one day and international communication
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International Newspaper Report NAFTA, or the North American Free Trade Agreement is a trade bloc between the countries in North America, which are the United States, Canada, and Mexico. This agreement is very helpful when it comes to importing and exporting between these countries. Joining the trade agreement with the United States and Canada was a very smart decision for Mexico from a business standpoint. Mexico looks a lot better to other countries when they are trading with such great countries
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