M1 Flashcards
What is international business?
All business activities needed to create, ship, and sell goods and services across national borders.
Also called global business, international trade, or foreign trade.
What are the reasons why international business is important?
Materials, parts, and demand
Global opportunities
Improved political relations
These factors contribute to the growth and development of international business.
When did international business start?
15,000 years ago in China, India, and Japan; thousands of years ago in Africa and South America; significant development during the eleventh century and colonization in the fifteenth and sixteenth centuries.
What are imports?
Products bought from businesses in other countries.
What are exports?
Products sold in other countries.
What are trade barriers?
Restrictions that reduce free trade among countries.
What is the purpose of import taxes?
To increase the cost of foreign products.
What do quotas do in international trade?
Restrict the number of imports.
What are some non-government created trade barriers?
Natural disasters, market demand shifts, and consumer preferences.
What factors constitute the international business environment?
- Geographic conditions
- Cultural and social factors
- Political and legal factors
- Economic conditions
Which geographic factors impact international business?
- Climate
- Terrain
- Seaways
- Natural resources
- Agricultural products
What economic conditions affect international business?
- Type of economic system
- Education level
- Type of industries
- Technology
What cultural and social factors can impact international business?
- Language
- Education
- Religion
- Values and customs
- Social relationships
What political and legal factors are considered in international business?
- Type of government
- Political stability
- Government policies toward business
What skills are important for international business?
- History
- Geography
- Foreign language
- Cultural awareness
- Study skills
Fill in the blank: International business skills include _______.
[history, geography, foreign language, cultural awareness, study skills]
True or False: International trade is a recent phenomenon.
False
What is the goal of the Country Business Environment Analysis activity?
To understand how different factors impact business in a specific country.
What are the components to analyze in a country’s business environment?
- Geographic: Climate, natural resources, transportation
- Economic: GDP, inflation, labor market, key industries
- Cultural & Social: Language, consumer behavior, work ethics
- Political & Legal: Trade policies, regulations, stability
What is a global citizen?
An individual who is aware of and understands global issues and cultural differences.
