Topic 1 Introducing global business.doc

Topic 1 Introducing global businessChapter 1 An Overview(综述） of international BusinessLinks to Other Subjects:Trade and Business Finance, especially trade policies,International Management Practices, especially tariffs, subsidies & quotas,Corporate and Business Strategy1.the meaning of international businessInternational business consists of business transactions between parties from more than one country.2.the basic forms of international business activities.(1)Exporting and Importing.Exporting: selling of products made in one’s own country for use or resale in other countries.‚Importing: buying of products made in other countries for use or resale in one’s own country.(2)International Investments.Capital supplied by residents of one country to residents of another.Such investments are divided into two categories:foreign direct investments and foreign portfolio investments.(3)Licensing, Franchising, and Management Contracts.International licensing is a contractual arrangement in which a firm in one country licenses the use of its intellectual property (patents,trademarks,brand names,copyrights,or trade secrets)to a firm in a second country in return for a royalty payment .‚International franchising,a specialized form of international licensing,occurs when a firm in one country(the franchiser)authorizes afirm in a second country(the franchisee)to utilize its operating systems as well as its brand names,trademarks,and logos in return for a royalty payment.ƒInternational management contract is an arrangement wherein a firm in another country agrees to operate facilities or provide other mangement services to a firm in another country agrees to operate facilities or provide other management services to a firm in another country for an agreed-upon fee.3.The causes of globalization(1)We live in an interconnected world,Globalization is a fact.(2)We need to leverage core competencies.(3)We need to acquire resources and supplies.(4)We need to seek new markets.(5)We need to better compete with rivals.(6)Because the changes in political environments and the technological changes.And so on.4.the growing role of emerging markets in the global economy.(1)United States------Third largest population in world.Fourth largest land mass.Largest economy. Recent development and so on.(2)Canada------Second largest land mass.80 percent of population concentrated along U.S./Canadian border.Rich natural resources.Trade with U.S. - single largest bilateral trade relationship in the world.(3)Mexico------Largest Spanish-speaking nation.Federal government system.Participant in NAFTA along with U.S. and Canada.5.The detail（细节、详情）of the role of Asia as a major marketplace（市场） and business Centre中心） in the world economy.(1)Marketplaces of Asia:Japan,Australia and New Zea land,The Four Tigers,China,India,Afghanistan and Central Asian Republics,Southeast Asian Countries(2)For example,China------World’s most populous country –approximately 1.3 billion people.Communist ideology mixed with market-oriented economic policies.Increasing FDI .Almost the largest economy in the world.And so on.India------World’s second most populous country.Per capita GDP of US$820.British colony until 1947.Recent development and so on.Topic 2 Global MarketsChapter 3 Legal,Technological,Accounting,and Political Environments.Chapter 4 The role of culture1. The domestic laws affect the ability of firms to conduct IB.(1)The Legal EnvironmentWhile domestic firms must follow laws and customs of the home country, international businesses must obey laws of the home country and all host countries.(2)There are several types of legal systems①Common Law------Based on wisdom of judges’ decisions on individual cases through history.Cases create legal precedents. ②Civil Law------Based on codification of what is and is not permissible.Originated in biblical times with the Romans.Reinforced by French Napoleonic code.Judge determines scope of evidence collected and presented.③Religious Law------Based on officially established rules governing the faith and practice of a particular religion.④Bureaucratic Law------It is whatever the country’s bureaucrats say it is,regardless of the formal law of the land.(3)Laws Affecting International Business Transactions①Sanctions------Government-imposed restraints against commerce with a foreign country.②Embargo------Ban on the exporting and/or importing of goods to a particular country.③Extraterritoriality------Application of a country’s laws to activities occurring outside its borders.(4)Laws Directed Against Foreign Firms①Nationalization------Transfer of property from a private company to the Government.②Expropriation------Involuntary transfer of property, with compensation, from a privately-owned firm to a host country government.③Confiscation------Involuntary transfer。