Chapter+outlines

=**__Chapter one outline__**= International Business is business across nations. Business is trying to get money by selling or giving services.

Domestic and International companies offer goods and services for money.
 * Domestic companies are within one company
 * International companies are across national borders

International companies are continously growing. International business will continue to grow affecting __**local levels**__**, __state or provincial__, __national level__,** and **__international level__**. It takes place between **__individual consumers__, __companies__, __states and provinces__,** and **__countries.__** Technology makes it possible for many companies to have international business in other nations. Globalization is the increase integration (intermixing of people or groups that were once segregated) of the world economy.

Two terms apply in international business, home country (where selling is located), and host country (when you travel to another country to sell).

Trade took place between China, India, and Japan over 15,000 years ago. The expansion of Roman Empire led to trade among regions. Columbus was looking for a better trade route between Spain and India when North America was discovered. By the 11th century: England, France, Spain, and Portugal used ships to trade between countries.

During the 1920s every car in Japan was made in the US. Both large and small companies reach costumers in other nations.

Trade has raised the standards of living in some countries. The world depends on each other for trade. Factors that influence trade relation are **__cultural & social__, __political & legal__,** and __**economic**__.

The four Ps of marketing:
 * Product
 * Price
 * Place
 * Promotion

=**__Vocabulary__**=
 * Business**: activity seeking profit by providing goods or services to others.
 * International Business**: business across national borders.
 * Domestic Company**: company that conducts business in only one country.
 * International Company**: company that conducts business across national borders.
 * Globalization**: increasing integration of the world economy.
 * Global Dependence**: concept that all countries depend on each other for trade.
 * Ethics**: values, moral principles by which people conduct themselves personally, socially, or professionally.
 * Business ethics**: set of ideas about how a company should conduct business in relation to legal, social, and enviornmental issues.
 * Social Responsibility**: the duty to so what's best for society.
 * Code of ethics**: statement that explains what a company or group believes is proper and improper conduct.
 * Stalkholders**: individuals or groups of people who have a direct interest, involvement, or investment in something.

=__Chapter 2 Outline__= Culture is the set of beliefs, customs, and attitudes of a distinct group of people.
 * Cultures of both trading partners can affect every aspect of a business relationship.
 * Culture effects how a company does business.

Succeeding in the world of International Business requires:
 * Understanding culture
 * Preparing for and adjusting to culture
 * Participating in culture

Cultural Components - aesthetics - customs - attitude beliefs - economic philosophy - education - language - religion - materialism - political philosophy - social institution

Cultures basic **elements: values, norms, folkways and mores**, and **roles** Values: strongly held concepts Norms: social rules that affect behaviors and actions Folkways and mores: customs that dictate how people act socially. Roles: part a person plays in social situations

Not all strategies work for all cultures. A study was conducted to determine how national culture influences values in a workplace. They observed differences based on **power distance, uncertainty avoidance, individualism** or **collectivism, gender differentiation**, and **short term or long term orientation**.

People with varied behaviors in a culture make up a subculture.
 * Subculture**: a smaller group or subset in a larger culture.

Homogeneity and Heterogeneity are used to represent level of diversity present in a country.
 * Homogeneous**: culture is when one group of people that is dominant in the population.
 * Heterogeneous**:culture is when there are many different groups of people.

The culture is a multinational company is not the same as the culture of a company operating in one company. Business decisions are more inclusive and targeted to the variety of cultures. First step to adjusting to a culture is to identify the Social Institutions.
 * Social Institutions**: organization that represent the patterns of activity that expresses the culture of a country
 * Culture shock**: a reaction that newcomers to a culture experience.

Roadblocks to adjusting to culture: **cultural baggage, cultural bias,** and **stereotyping**. Before experiencing a culture that is new to you, consider a few cultural concepts that vary in different countries: **Concepts of time, Job prestige, directness in communication, change, achievement** and **work**.
 * Ethnocentrism**: the belief that ones' own culture is better than all other countries.

Chapter 1-3 Review
It is important for us to work globally because not all countries can obtain certain things within one country. We all need to help each other with supplies. Local level, state or provincial level, national level, and international level. National growth depends on each country helping one another. Local merchants must adapt to a rapidly changing world. Concepts of Time: Some parts of the world value time more than others. People in the USA like to multitask to save time while other countries find it very rude to rush things because time is precious. People in USA dedicate more of their time to work while other countries they work much more less. Culture affects time at work. Mexico, South America, and Europe take three hours off of work after lunch during the warmest part of the say. This tradition is less common now and called siesta. Calendars and Holidays vary in different countries and so does the start of the year. Time is another key part of understanding culture. Expect to adjust to work times, work days, and work weeks.
 * Why is it important to work in the global environment?**
 * What is the Impact of International Business?**
 * What does National growth depend on?**
 * How does International Business affect local levels?**


 * Chapter 2. Cultural and Social Influences**

The cultures of both trading partners can affect every aspect of a business relationship. Values, norms, folkways and mores, and roles. Subculture is a smaller group or subset within a larger culture.Subculture can form around music, religion, political affiliation, or other simliar interest. In addition, age, race, or gender can differentiate subcultures. Regions and cities may also produce distinct subcultures. To adjust to a new culture and overcome, newcomers must become very aware of their own mental and social reactions that can prevent successful adjustment.
 * Explain how culture affects international business.**
 * Describe the elements of cultures.**
 * Describe the elements of subcultures and how cultural literacy can be improved.**
 * What ways can help people overcome stereotyping and cultural bias?**


 * Chapter 3 International Communications**

Communication means transmitting, recieving, and processing information. Learning language sequence, different written forms, and different languages. Non-verbal communication or interpetors.
 * Explain the basic nature of communication.**
 * What are the challenges of communicating in a world language?**
 * What language do you think is the most used for business?**

=**Chapter 3: International Communications**=

Understanding a communication in a single culture is difficult. Communication means transmitting. receiving, and processing information.

Verbal Communication is sending messages using words that are either spoken or written. Communication challenges: how people speak, time for translations, technical terms, and social behavior Aspects of Verbal Communication:
 * Language
 * Challenges and complications
 * Verbal communication strategies.

Language is the medium of communication through words, symbols, numbers, characters, and cues. Different languages make communication more difficult. Many companies are now choosing to use the english language when doing business. English is becoming the most dominant language.

Another challenge is Slang. Slang is colloquial speech used on the street or in recreational situations.

Vebal Communication strategies: learn key phrases; use names, titles, and tanks appropriately; use buisness cards appropriately; consider other differences.

International Trade Document: the papers and documents used to legally export and import goods.

Nonverbal Communication is sending messages without using words These signals are influenced by cultural factors, methods of communication, specific business activites Important nonverbal factors:
 * Numbers
 * Emblems
 * Colors
 * Smells
 * Foods
 * Personal appearance and dress

Building relationships require knowing about internation behavior such as Major holidays, Giving and reciveing gifts Gift: an item given to convey good will. Bribe: an item or money offered to entice the reciever to do something illegal or unethical. Expatriate: a person who relocates in a foreign country live and/or conduct business. Acculturation: the process of understanding, adapting to, and operating in a foreign country.


 * Is gift giving the same as grease payments? Are grease payments a form of bribery?**
 * Gift giving is an item given to convey good will.
 * Grease payments are a bribe or extorted money thats small in amount used to speed of the process or dealing with government.
 * The difference between grease payments and bribery are that bribing is illegal while some grease payments are premitted. Gift giving is just giving something to someone for free.

=**Chapter 4 : The nature of International Trade**=

International Trade consists of all business activities conducted between individuals, countries, and governments from other countries. It also takes place within groups or clusters of countries, such as member nations of the World Trade Organization.

Imports and exports describe international trade. Amounts are not always equal with importing and exporting.
 * Imports are goods and services people in one country buy from people in another country.
 * Exports are goods and services people in one country sell to people in another country.

A good is a tangible item that is made, manufactured, or grown. A service is an intangible benefit or task provided by a business to its customers.

Import process:
 * Identify need
 * Search for suppliers
 * Create and finalize a purchase agreement
 * Recieve goods
 * Confirm the purchase

Export process:
 * Assess demand
 * Identify potential customers and make sales contacts
 * Create and Finalize a purchase agreement
 * Deliver the goods and services
 * Complete the transaction

FOB means free on board or freight on board, and signifies that ownership of merchandise in transit determines if freight charges are free. CIF (cost, insurance, and freight) is the price quoted to the buyer, including cost, insurance, and freight. C&F (cost and freight) price quoted to the buyer, signifying the buyer pays seperately for insurance.

Exporting risk:
 * Time
 * Product
 * Economic
 * Country

Dependency is the practice of relying too much on one trading partner. It can occur at both corporate and national level. Balance of trade: difference between how a much a country imports and exports

Trade Barriers are restrictions that reduce free trade and limit competition from imported goods. There are four types of trade barriers: tariffs, embargoes, quotas, and boycotts. Protectism is a system of imposing extra costs on import to protect the interest of local businesses.

Dumping is the practice of selling goods in another country for less than the cost of manufacturing them, or for less than their market price.


 * Describe the process of importing and exporting.**
 * Explain the difference between goods and services.**
 * Explain the steps of the importing and exporting process.**
 * Importing is buying something from another country while exporting is selling to another country.
 * Goods are tangible items and services are not.
 * Exporting: Assess demand, Identify potential customers and make sales contacts, create and finalize a purchase agreement, deliver the goods and services, complete the transaction.
 * Importing: Identify need, Search for suppliers, create and finalize purchase agreement, receive goods, and confirm purchase.

=Chapter 5: Government and Legal Influences=


 * Democracy**: is a government system in which the nations citizens hold political power.


 * Totalitarianism**: is a type of government system in which citizens have no influence on the government policies and laws.


 * Theocracy**: is a type of totalitarian government whose leaders claim to be inspired by divine guidance.


 * Free trade zone**: is a place where people can buy goods from other countries withought paying extra taxes.


 * Free trade agreement**: is a treaty between countries in which the countries agree to not charge taxes, duties, or tariffs on goods that they trade.


 * Common law:** is a set of laws based on local customs, traditions and precedent.


 * Civil law:** is a set of codes based on broad legal principles. is is the basis off law in many countrues, inclus countries, including germany, france, japan,and russia.


 * Theocratic law:** is a set of laws based on religious teachings.


 * Liabilty**: is legal responsibility for the financial cost of annother persons losses or injuries.


 * Labor laws:**
 * minimum wage rate
 * length of the work week and overtime
 * hiring, filring, and layoff policies
 * the right to form a labor union
 * the right to strike


 * Intelectual property**: is an original work fixed in a tangible medium of expression that can be copyrighted, patented, or trade marked.


 * Intelectual property protection:**
 * copyright
 * trademark
 * patent


 * Legitation:** is the legal process used to resolve a dispute throught the court system


 * Mediation**: is a process of intervention between conflicting