International business and trade

• International Business relates to any situation where the production or distribution of goods or services crosses country borders
• Globalization- the shift toward a more interdependent and integrated global economy- relates opportunities for international business
• Globalization can take place in terms of markets, where trade barries are falling and buyer preferences are changing.
• Encompasses a full range of cross-border exchanges of good, services, or resources between two or more nations.
• Exchanges can go beyond the exchange of money for physical goods
• International transfers of other resources, such as people, intellectual property (eg. patents, copyrights, brand trademarks, and data)
• Contractual assets or liabilities (eg. the right to use some foreign asset, provide some future service to foreign customers, or execute a complex financial instrument)
• The entities involved in international business range from large multinational firms with thousands of employees doing business in many countries around the world to a small one-person company acting as an importer or exporter.
• International business transactions motivated by nonfinancial gains that affect a business's future
• Profit is about money matters
• People is about social responsibility
• Process is about the process of products
• Key Opinion Leader is about a well known in their field for their expertise.
• A stakeholder is an individual or organization whose interest may be affected as the result of what another individual or organization does
• The government is responsible for protecting the environment
• Other stakeholder groups might include industry associations, trade groups, suppliers, and labor.
• A business can be a person or organization engaged in commerce with the aim of achieving a profit
• Importer sells products and services that are sources from other countries
• Exporter sells products and services in foreign countries that are sources from its home country
• Foreign direct investment means that a firm is investing assets directly into a foreign country's buildings, equipment, or organizations.
• Location advantage include better access to raw materials, less costly labor, key suppliers, key customers, energy, and natural resources,
• Government is generally considered to be the body of people that sets and administers public policy and exercises executive, political, and sovereign power through customs, institutions, and laws within a state, country, or other political unit.
• National government also participate in international treaties related to such issues as trade, the environment, or child labor
• The North American Free Trade Agreement (NAFTA) is an agreement signed by the governments of the United States, Canada, and Mexico to create a trade bloc in North America to reduce or eliminate tariffs among the member countries and thus facilitate trade
• The Kyoto Protocol is an agreement aimed to combating global warming among participating countries
• National Nongovernmental Organizations (NGOs) include any nonprofit, voluntary citizen's groups that are organized on a local, national, or international level
• Globalization 1.0 started with Columbus's discovery of the New World and ran from 1492 to about 1800
• Globalization 2.0 from about 1800 to 2000 was disrupted by the Great Depression and both World Wars and was largely shaped by the emerging power of huge, multinational corporations.
• Globalization 3.0 began around 2000, with advances in global electronic interconnectivity that allowed individuals to communicate as never before
• In Globalization 1.0, nations dominated global expansion
• Globalization 2.0 was driven by the ascension of multinational companies, which pushed global development
• In Globalization 3.0, major software advances have allowed an unprecedented number of people worldwide to work together with unlimited potential
• Trade is the concept of exchanging goods and services between two people or entities
• International trade is the concept of this exchange between people or entities in two different countries.