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* * Chapter 1 Background for International Business: An Overview Learning objectives outline the main activities involved in international business indicate the significance of international business for individuals, firms, and countries identify the advantages and disadvantages of the main international market entry strategies discuss the reasons why firms go international Introduction International business defined The importance of international business Motives for going global Text: Get Familiar with International Business It is hard to imagine a world without international business. International business is claimed to be as old as the history of mankind itself. The basic human need for trade remains the same. However, unlike ancient times during which trade was devised and undertaken by communities for the benefit of the communities themselves, over 90 percent of modern trade is undertaken by private firms in pursuit of their own aims and objectives. Introduction International business defined International business refers to any business activity organized and carried out across national borders by business firms and governments. Categories of international business activities international trade (import and export) international investment : wholly owned subsidiary (独资), joint venture(合资), licensed or franchised operation, management projects and turnkey projects (整套承包工程), etc. ) Technology Competition Standardization The business environment The political impact of international business The importance of international business The importance of international business a) the technological spin-offs (副产品)can often save the host country the research and development costs; b) the competition will result in more efficient techniques in production, management, and marketing; c) common standards are adopted and enable easier and more effective comparisons to be made by consumers; d) A business firm operates within its internal and external environ
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