2. 1. International business and it's importance.
2. Cultural influence on global business.
3. Government and global business.
4. International trade agreements.
5. International legal systems.
6. New international business ventures.
4. What is International Business?
International business relates to any situation where the production or distribution of
goods or services crosses country borders. International business is also known as
International business describes all of the commercial transactions, both
governmental and private, that take place between different countries.
6. Materials, Parts and Demand
Products made in the United States often include materials around the world.
Each year, Americans companies buy oil and steel from other nations to use in
Nearly every U.S. built car has parts that were manufactured in Japan, Mexico,
France, Korea, Thailand, England and many other countries.
7. Global Opportunities
Global sourcing of raw material.
Outsourcing of services.
Growth of information technology tools, including the internet and electronic
commerce make business transactions are faster and more global.
Opportunity to become broad-based. Firms find it easier to manage downturns as
they can enter markets in emerging economies.
8. Improved political relations
An old saying suggests ‘ countries that trade with one another are less likely to have
wars with each other.
International business activities can help to improve mutual understanding,
communication and the level of respect among people in different nations.
Every business competes against companies that are either foreign owned or that sell
foreign made products.
As a results, even when you may not realize it, international business is affecting your
11. What is culture in global business?
Culture can be defined as an evolving set of collective beliefs, values and
attitudes. Culture is a key component in business and has an impact on the strategic
direction of business. Culture influences management, decisions and
all business functions from accounting to production.
12. Culture and Consumer Behavior
Culture has major impact on consumer behavior, spending pattern, primary choice of
buying and expense nature. Vital cultural differences influencing the suitability and
attractiveness of products in various regions of the world are still remaining.
Culture has a comparable impact on the attraction and tolerability of different sorts of
commercials in various regions. As an outcome of this the global business has to
provide cautious consideration to culture in designing and marketing and promoting
any product or service that is provided.
13. Why Culture is Important in International Business
Doing business on a global basis requires a good understanding of different cultures.
What works in your country might not work well in another, and could even be
interpreted as an insult. And in your role as an international human resources
professional, it’s important to raise the awareness of cultural issues within your
organization to ensure effectiveness.
14. How do cultural differences affect International
Understanding and adapting to the local culture is important international
A relationship may exist between culture and the costs of doing business in a
country or region.
Some other differences are-
17. Government and Global Business
Each group represents an imaginary nation with a varied amount of natural
resources and technology.
I represent the market and will only purchase finished products that are exactly
to my specifications.
The members of the nation with the most money at the end will win a prize.
18. Types of Political Systems
Democracy—all citizens take part in making the rules that govern them.
Totalitarianism—political control held by one person or a small group.
Mixed systems—characteristics of both systems.
19. Political Environment in International Business?
The political environment in international business consists of a set of political
factors and government activities in a foreign market that can either facilitate or
hinder a business' ability to conduct business activities in the foreign market.
There is often a high degree of uncertainty when conducting business in a foreign
country, and this risk is often referred to as political risk or sovereign risk.
20. Government activities influence business
Laws that protect workers and consumers like Child Labor Laws, Product Safety
Trade Barriers that government actions or policies that make it difficult to trade
Tariffs is a tax placed on products that are traded internationally.
Licensing requirements is to control imports by requiring that companies have a
government import license.
23. What is International trade agreements?
Trade agreements regulate international trade between two or more nations. An
agreement may cover all imports and exports, certain categories of goods, or a
It is may be bilateral or multilateral , and are of the preferential and free trade
They are rules and regulations that govern trade. And also very controversial.
25. How can trade agreement impact a country?
Free trade agreements are contracts between countries to allow access to their
markets. FTAs can force local industries to become more competitive and rely less on
government subsidies. They can open new markets, increase GDP, and invite new
26. Advantages of International Trade agreement
Longer product lifespan.
Easier cash-flow management.
Better risk management.
Benefiting from currency exchange.
Access to export financing.
Disposal of surplus goods.
27. Disadvantages of International Trade agreement
Shipping Customs and Duties. International shipping companies like FedEx, UPS and DHL
make it easy to ship packages almost anywhere in the world.
Intellectual Property Theft.
30. What is International legal system?
The international legal system is the foundation for the conduct of international
relations. It is this system that regulates state actions under international law.
The principal subjects of international law are states, rather than individuals as
they are under municipal law.
In addition, non-governmental organisations and national liberation movements
have also been said to possess international legal personality.
31. Types of Legal Systems
Legal systems vary from country to country, and sometimes within a single country.
Although they develop in different ways, legal systems also have some similarities based
on historically accepted justice ideals. Legal systems do fall into groups or patterns with
some similar features within each group.
Among the main groups that you might encounter are:
1) common law; 2) civil law; 3) religious law; and 4) customary law.
Many countries employ more than one of these systems at the same time to create a
hybrid system. In some places, the current security situation can also impact the way
that legal systems work. It is helpful to understand some of the similarities and
differences as you move through your case.
32. Culture influences in International business
1. Social structure
4. Economic philosophy
5. Political philosophy
35. What is International new ventures?
We define an international new venture as a business organization that, from
inception, seeks to derive significant competitive advantage from the use of
resources and the sale of outputs in multiple countries.
While a company may go it alone when entering a global market, many often
form joint ventures and collaborate with other domestic companies or
companies in the foreign market.
36. International Joint Ventures
A partnership between two or more firms.
Included equity joint ventures and non-equity, project-based ventures.
Collaboration helps overcome the often substantial risk and high costs of
Sometimes it also called partnership and strategic alliances.
37. Why it is needed?
In a certain point of their history, enterprises decide to grow internationally. Some
others are created from scratch as international organizations. Irrespective the
moment, their motivations and the way they are becoming international, the fact
is that there is an increasing number of companies taking this step.
The consequence is the existence of a market demanding and deserving high-level
support to internationalization initiatives.
International Business Venture offers business strategy and legal services
specialized in business internationalization.
38. How to apply this on business?
We help institutions, industries and companies to import goods at their convenience and at the best price. We do
the following in our imports and exports:
• Supplier identification
• Customs & Clearing
• Purchase orders, contracts
• Foreign Exchange Transactions
• Product Support