Aspects of International Business International Business The fundamental

Aspects of International Business

International Business • The fundamental premise of all business, is trade. • International trade is the basis of international business. • International trade involved fulfilling the needs and wants of another country by selling products to that country. (Exporting)

• It also involves bringing in products to satisfy the wants and needs of its own consumers. (Importing)

Exporting & Importing • Exporting is the process of enabling products grown or made domestically to travel to a foreign country. • Importing is the process of enabling goods to enter the domestic market.

• Companies must carefully choose the products they wish to import or export. • Example: If imported grapevines are discovered to have earth on them – they will be rejected and returned. • If an agricultural product has been quarantined – it will probably be burned.

• Cars must follow pollution guidelines if they are to be shipped to a country. (The reason we don’t always have the same cars as in the U. S. ) • If there are outbreaks of disease, that commodity will not be allowed in. – Mad Cow disease has affected us in Canada since 2003… S. Korea is finally buying our beef again as of February 2012!

Importing • There are various reasons to import: – More convenient – More economical (lower price) – Better quality

Importing • Where do you begin? – We will read over ‘So you want to import? ’ together. • Finding the most cost effective but also the most reliable supplier is very important when importing goods.

Activity • Using the ‘BBB 4 M Supplier Information Sheet’ handout – you are to find two different suppliers of the USB band (bracelet) the class is going to be selling. • Let’s look over the form together….