summary
chapter 1.1 - what is international business?
international business: selling goods or services across borders and all commercial activities
that cross national lines.
- trade and investment
- knowledge exchange
- logistics and supply chains
- cross-border collaboration and innovation
globalisation:
- movement of capital, labour, knowledge, and goods across countries
- enabled by interconnected technologies and global supply chains
- influenced by economic shifts in emerging markets
localisation:
- focuses on producing closer to home
- reduces costs and increases agility in uncertain markets
glocalisation: combines global strategies with local adaptation
sustainable international business:
- centres on the triple bottom line: people, planet, profit
- aims to respect workers’ rights, protect the environment, and ensure profitability
- recognises wider stakeholders: communities, governments, and the environment
key sustainability frameworks: guide responsible and transparent business practices
- CEEP-CSR label
- OECD guidelines
- ISO 26000
brics countries: brazil, russia, india, china, south africa
stakeholders: a group or individual who influences/who are influenced by an organisation or
company.
sustainable international business has three pillars (triple bottom line)
- people
- planet
- profit
fair trade is very important.
,chapter 1.2 - why do companies cross borders?
they internationalize for two primary forces: international trade and foreign direct
investment (FDI).
international trade
imports allow firms to access cheaper production, benefit from raw materials abroad, and
tap into new efficiencies.
exports let companies overcome limited domestic markets, seek growth, manage
overcapacity, and secure long-term stability.
competitive advantage of nations links a firm’s industry strength to domestic
conditions—like local competition, supportive infrastructure, or customer demand—which
can spark international moves).
motives for crossing borders
- proactive motives (strategic ambitions): profit and growth targets, unique products,
economies of scale, integrated supply chains, tax benefits, and spotting foreign
opportunities.
- reactive motives (responses to pressures): small or saturated home markets,
competition, overproduction, seasonal effects, proximity to suppliers/customers, and
perishability.
these motives reflect both aspiration and adaptation—companies navigating opportunities
and obstacles with purpose.
chapter 1.3 - european union and international business
trade balance
- trade surplus: many EU countries (e.g., germany, france, italy) export more than they
import.
- trade deficit: netherlands, for example, imported more than it exported—seen as a
passive trade balance.
foreign direct investment (fdi) happens when a company or person from one country invests
directly in a business in another country, not just by buying shares but by actually taking
control or having significant influence over how it’s run.
examples:
- when toyota builds a car factory in france, that’s fdi.
- when a dutch company buys a controlling stake in a spanish winery, that’s also fdi.
the key idea is long-term interest and control, not short-term profit from stocks or bonds.
in international business terms, fdi matters because it:
- creates jobs in the host country
- transfers technology, knowledge, and skills
- strengthens global supply chains
, - and ties economies together more deeply.
chapter 1.1 - what is international business?
international business: selling goods or services across borders and all commercial activities
that cross national lines.
- trade and investment
- knowledge exchange
- logistics and supply chains
- cross-border collaboration and innovation
globalisation:
- movement of capital, labour, knowledge, and goods across countries
- enabled by interconnected technologies and global supply chains
- influenced by economic shifts in emerging markets
localisation:
- focuses on producing closer to home
- reduces costs and increases agility in uncertain markets
glocalisation: combines global strategies with local adaptation
sustainable international business:
- centres on the triple bottom line: people, planet, profit
- aims to respect workers’ rights, protect the environment, and ensure profitability
- recognises wider stakeholders: communities, governments, and the environment
key sustainability frameworks: guide responsible and transparent business practices
- CEEP-CSR label
- OECD guidelines
- ISO 26000
brics countries: brazil, russia, india, china, south africa
stakeholders: a group or individual who influences/who are influenced by an organisation or
company.
sustainable international business has three pillars (triple bottom line)
- people
- planet
- profit
fair trade is very important.
,chapter 1.2 - why do companies cross borders?
they internationalize for two primary forces: international trade and foreign direct
investment (FDI).
international trade
imports allow firms to access cheaper production, benefit from raw materials abroad, and
tap into new efficiencies.
exports let companies overcome limited domestic markets, seek growth, manage
overcapacity, and secure long-term stability.
competitive advantage of nations links a firm’s industry strength to domestic
conditions—like local competition, supportive infrastructure, or customer demand—which
can spark international moves).
motives for crossing borders
- proactive motives (strategic ambitions): profit and growth targets, unique products,
economies of scale, integrated supply chains, tax benefits, and spotting foreign
opportunities.
- reactive motives (responses to pressures): small or saturated home markets,
competition, overproduction, seasonal effects, proximity to suppliers/customers, and
perishability.
these motives reflect both aspiration and adaptation—companies navigating opportunities
and obstacles with purpose.
chapter 1.3 - european union and international business
trade balance
- trade surplus: many EU countries (e.g., germany, france, italy) export more than they
import.
- trade deficit: netherlands, for example, imported more than it exported—seen as a
passive trade balance.
foreign direct investment (fdi) happens when a company or person from one country invests
directly in a business in another country, not just by buying shares but by actually taking
control or having significant influence over how it’s run.
examples:
- when toyota builds a car factory in france, that’s fdi.
- when a dutch company buys a controlling stake in a spanish winery, that’s also fdi.
the key idea is long-term interest and control, not short-term profit from stocks or bonds.
in international business terms, fdi matters because it:
- creates jobs in the host country
- transfers technology, knowledge, and skills
- strengthens global supply chains
, - and ties economies together more deeply.
