Topic 1 Introducing global business.docVIP

Topic 1 Introducing global business Chapter 1 An Overview(综述） of international Business Links to Other Subjects:Trade and Business Finance, especially trade policies,International Management Practices, especially tariffs, subsidies quotas,Corporate and Business Strategy 1.the meaning of international business International 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. (International 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