Embed Size (px)
Citation preview
BBB4M
CHAPTER 2
2.1 Aspects of International
Business• International Business is all the activities
needed to get a product to consumers. It involves trade, importing, exporting, use of foreign assets and foreign investment.
• International Trade – involves companies in one country fulfilling the needs and wants of another by selling products to groups (exporting) and vice versa (importing)
2.1 Aspects of International
Business• Importing
• To bring products or services into a country, for use by another business or for resale.
• There must be a known demand for the product
• The majority of the goods that Canada imports come from the united states
• Global Sourcing• The process of a company buying
equipment, capital goods, raw materials, or services from around the world.
2.1 Aspects of International
Business• Exporting
• To send goods or services to another country, for use by a business or for resale.
• STARTING AN IMPORT/EXPORT BUSINESS• Being ready : Management commitment,
competitive advantage, cash flow, capacity to produce
• Marketing and service experience• Time investment, money and proper market
selection
2.1 Aspects of International
Business• Trade Missions
• Selected Canadian firms visit a targeted foreign country.
• Trade Shows• Shows allow a potential purchaser to
communicate with suppliers.
2.1 Aspects of International
Business• Foreign Investments
• Public sector investments (putting money in govt-owned assets). Private sector investments (usually held in shares on the stock market)
• FDIs occurs when a company establishes a subsidiary operation or joint venture in another country
• Portfolio investment – An investor buys a share of a foreign company for a share of the profit and not a say in how the company is run.
2.2 Why do Companies Expand
Internationally?• Expand Markets and Increase sales
• Controlling Expenses
• Diversification
• Competitiveness
2.3 Reasons for recent Growth
in International Business
• Developments in communication technology
• Time zones
• Developments in transportation
• Freer borders
• Increased business confidence
• Increased global competition
2.4 Advantages of Doing Business in
Canada• Lower Production and Business costs
• Excellent Human resources
• A positive business climate
• Almost Seamless North American Markets
• Good Infrastructure
• Good Quality of life
2.5 Preparing for the International Workplace
• Benefits of Getting experience abroad Experience in how other cultures do
business Knowledge of the world’s resources and
global economy Improve multi-cultural communications Acquire business skills on a global level Gain confidence in dealing with other
countries
2.5 Preparing for the International Workplace
GETTING EXPERIENCE AT HOME
RESEARCH RESOURCES :
• Schools, public library
• Newspapers, news and Internet
• People in the business industry
• Community organizations e.g. chamber of commerce
2.5 Preparing for the International Workplace
• Increasing your knowledge Understand and respect other cultures Have strong spoken and written language skills Knowing a second language is very useful
• Refining your skills Learn how to problem-solve Learn to use critical thinking Show leadership qualities Learn to clearly communicate a message Learn to negotiate and resolve conflicts
2.5 Preparing for the International Workplace
• SKILLS INVENTORY General traits – enjoy change, adventure
open minded Adaptation and coping skills – emotionally
stable, ability to deal with stress Intercultural communication skills and traits
– tolerant, sensitive to others, listening/observing skills
Overseas work effectiveness skills – independence, self-discipline, resourcefulness
SCHOOLS
• Grant MacEwan College (Alberta) – Asia pacific management, Bachelor of applied int’l business
• Humber college (Toronto) – Certificates in specific areas of int’l business
• Richard Ivey (Western Ontario) – Undergraduate and graduate programs in int’l business
• University of Victoria (B.C) – International exchange programs and cultural liaison programs
