Module 1 MEANING AND TYPES OF INTERNATIONAL BUSINESS

Module: 1 : MEANING AND TYPES OF INTERNATIONAL BUSINESS Unit 1 : Business Definitions: Business is the organized effort of individuals, produce and sell, for a profit, the good and services that satisfy society’s needs. To be successful in business either locally or internationally, business must perform three activities of (1) must be organized (2) must meet needs of society , and must earn a profit.

Unit 2 : Basis for International Business : Multinational business encompasses all business activities that involve exchanges across the national boundaries. A firm is therefore engaged in international business, when it buys some portion of its input fro, or sell some of its output to an organization located in a foreign country. _(a) Absolute Advantage: Some countries are better equipped than others to produce some particular goods or services. This may be due to a country’s natural resources, it’s labour supply, or even customs duties. Such countries will be best off if it could specialize in the production of such products, because it can produce them most efficiently. Such a country could use what it needed of these products, and then trade the surplus for product efficiently

_(b) Comparative Advantage: A comparative advantage is the ability to produce a specific product more efficiently than any other nation. For example, Ghana can produce gold more effiently than petroleum. Also, your secretary, as a manager, has a comparative in typing, better than he or she can manage the business. So that the manager can spend his her time managing, and leave the typing to your secretary. Overall, the business is run as efficiently as possible , because you are each working in accordance with your capability. The same is true of nations goods and services, are produced more efficiently, when each country specializes in the product for which it has comparative advantage. By definition, every country has comparative advantage in some products. The United States has many comparative advantages in research and development, high tech industries, and in identifying new markets.

Module 2 : PROCESS FOR INTERNATIONAL BUSINESS, AND MAJOR DECISIONS IN INTERNATIONAL BUSINESS Unit 1: Decision in Looking at the Global Business Environment Unit 2 : Deciding Whether to Really Go International Unit 3: Deciding Which Market to Enter Unit 4 : Decidng on How to Enter Unit 5 : Deciding on the Global Market Programs

Module 3: TYPES OF RESTRICTIONS Or BARRIERS IN INTERNATIONAL BUSINESS Unit 1 : Tariff Restrictions Unit 2: Non-Tariff Restrictions

Module 4: METHODS OF ENTERING INTERNATIONAL BUSINESS Unit 1 & 2: Licensing & Exporting Unit 3 & 4: Joint Ventures &Totally Owned Facilities Unit 5: Strategic Alliance Unit 6 & 7: Trading Companies & Counter-Trade Unit 8: Multinational Firms

Module 5: FINANCING INTERNATIONAL BUSINESS Unit 1: The Export-Import Banks (Exim Banks} Unit 2: Multilateral Development Bank (MDB) Unit 3: The International Monetary Fund (IMF)