Lecture 3: Basic for international Business- Ken Wendeln, MBA

http://www.imds.iupui.edu/imds/W200bb.shtml
Segment 1: 2.1 (Clip 4) Basis for International Business (0:12)

Here is my note-taking after searching a suitable topic for a long time:

BUSINESS IN GENERAL:

1.WHAT IS INTERNATIONAL BUSINESS?
Exchange across national boundaries:
- Absolute advantage- ability to produce special goods more effective than any other countries
- Comparative advantage: - ability to produce special goods more effective than other countries
--> Goods and service products : more effective when one country specialise

2. PRINCIPLE OF NATION 'S COMPARATIVE ADVANTAGE:
- Lower cost labour markets
- Financial market

- Technology
- Nation resource
- Geographic areas
Why?
- Cheap price products
- Financial market are now global market
- With technology, internet..per add decrease value
- Companies easy bring work to employees
- Easy move to another countries

3. ARTIFICIAL RESTRICTIONS ON INTERNATIONAL TRADE:

Tariff Barriers:

+ Import duty (tariff)

+ Dumping = drive reduce price

Non-tariff Barriers:

+ Embargo-complete halt to trade of product

+ Import quota

+ Foreign exchange control

+ Currency devaluation--> increase cost of foreign exchange rate

Reason for and against trade restriction:

For restriction:

+ Balance of trade

+ Protect industries

+ Protect domestic jobs

+ National security

+ Health of citizens

+ Retaliate for another nation's restriction

Against trade restriction:

+ More prices for customers

+ Restricts of customers' choice

+ Misallocations of international resources

+ Loss of jobs

GATT- General Agreement on Tariffs and Trade (established in 1947) - Reductions in Trade Tariff and Barriers --> Big driver

WTO- dedicated or reducing or eliminating tariff or other barriers of trade

I can take note this lecture because i have read on a book before, and because the lecture is shown by slides. I feel better now.