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Introduction to international business

Introduction

International business includes all business transactions involving two or more countries. These business relationships may be between private individuals, companies, groups of companies, non-profit organisations or government agencies. In some ways, international business is an extension of domestic business, but it is different for two reasons. The first reason is that international business objectives are likely to be different from domestic business objectives; the second and more significant is that the environmental conditions in which international business is conducted are usually of greater complexity than is the case with domestic business. These complexities arise from, amongst other things, differences in culture, currencies, legal systems and the endowment of national resources.

Developments in communication and transportation technology facilitate trade worldwide, leading to the cliché that 'all business is now international business'; thus people working in maritime industries are inevitably involved in international business.

Chapter 1 is lengthy because it covers two chapters of your textbook. However, it is important because it provides the basis for the discussion in succeeding chapters. Some concepts essential to an understanding of international business form the essence of the chapter, but you should not find it too demanding of your study time.

Part A of this chapter covers Chapter 1 of your textbook, Part B covers Chapter 2.

Topics

The following is the outline of the topics covered in this chapter.

Learning outcomes

The objectives for this chapter have been carefully constructed to reflect the most significant concepts and ideas we are going to cover and to provide a focus for your work during the chapter. After completing the work you should be able to:

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