Ch 4 International Business Taking Care of Business

Ch. 4 – International Business

Taking Care of Business. . In other countries? ! �Culture: the sum of a country’s way of life, beliefs and customs �Ways it impacts business: ◦Dealing with people, punctuality, greetings, nonverbal communication, manners, decision making etc.

Culture activity! �You will each be assigned a country and be giving tips on how to introduce yourselves �Your task is to introduce yourself to your classmates in that culture and try to guess where each other comes from

International Business �Business transactions necessary for creating, shipping, and selling goods and services across national borders 4

International Business Domestic Transaction qselling of items produced in the same country. International Transaction qselling of items produced in other countries Think about it: WHY DO WE DO BUSINESS INTERNATIONALLY? WHAT ARE THE BENEFITS? 5

Benefits of International Business 1. Access to Markets q. Markets are 200 times larger than those at home. Global Product q standardized item that is offered in the same format in all countries. Ex. Soccer ball 6

Benefits of International Business 7 2. Cheaper Labour q Lower prices q #1 reason

Benefits of International Business Increased Quality of Goods ◦ Country may be expert 4. Increased Quantity q Can produce more 3. 8

Benefits of International Business Access to Resources q Access to natural, human, and capital resources 5. 9

Five P’s of International Business 5 Major reasons for doing international business (5 Ps) 1. Product q More variety 2. Price q May cost less depending on foreign wages, taxes etc. 10

Five P’s of International Business 3. Proximity q Neighbouring country’s – easy to trade Ex: 80 percent of the Canadian population lives within 170 km of the American border. 11

Five P’s of International Business 4. Preference q Based on reputation and specialization Ex: Swiss watches, Belgium chocolates. 12

Five P’s of International Business 5. Promotion q Technology has made international promotion easier 13

Where do your clothes come from?

Where do your clothes come from? � For your shirt, pants, & shoes, find out what country they were made in. Do your best to figure out an exact country, or at minimum give an approximate location.

Doing Business in china Video - Handmaster �Questions to think of: ◦ What are some of the challenges of business in China? ◦ What benefits will he get by doing business in China?