tailieunhanh - Lecture International business (11/e) - Chapter 2: International trade and foreign direct Investment

The main goals of this chapter are to: Appreciate the magnitude of international trade; identify the direction of trade, or who trades with whom; explain the size, growth, and direction of . foreign direct investment, worldwide and in the .; identify who invests and how much is invested in .; understand the reasons for entering foreign markets. | International Trade and Foreign Direct Investment McGraw-Hill/Irwin International Business, 11/e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. chapter two Learning Objectives Appreciate the magnitude of international trade Identify the direction of trade, or who trades with whom Explain the size, growth, and direction of . foreign direct investment, worldwide and in the . Identify who invests and how much is invested in . Understand the reasons for entering foreign markets Comprehend that globalization of international firm occurs over seven dimensions and that a company can be partially global in some dimensions and completely global in others 2- Large International Firms Invest Overseas, and They Also Export Large American international firms responding to such factors as: Global competition Liberalization by host governments in regard to foreign investment Advances in technology 2- Large International Firms Invest Overseas, and They Also Export Note: Foreign sales refers to sales outside the home country of the company. All figures are based on 2005 fiscal year, as reported in 2006, except for Wal-Mart Stores, whose fiscal year ended January 31, 2006. This list excludes BP, which was ranked the 4th largest, because the company’s annual report did not provide information on either foreign sales or net income from foreign operations. — information not provided in company annual report. Source: Company annual reports, Fortune magazine’s 2006 Global 500 listing of world’s largest companies, (July 14, 2006). 2- Large International Firms Invest Overseas, and They Also Export Supplying overseas markets Exporting to and production in those markets In order to establish and expand overseas operations International Trade - Including exports and imports Foreign Direct Investment Foreign Sourcing 2- International Trade Increase in volume of trade Source: Monthly | International Trade and Foreign Direct Investment McGraw-Hill/Irwin International Business, 11/e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. chapter two Learning Objectives Appreciate the magnitude of international trade Identify the direction of trade, or who trades with whom Explain the size, growth, and direction of . foreign direct investment, worldwide and in the . Identify who invests and how much is invested in . Understand the reasons for entering foreign markets Comprehend that globalization of international firm occurs over seven dimensions and that a company can be partially global in some dimensions and completely global in others 2- Large International Firms Invest Overseas, and They Also Export Large American international firms responding to such factors as: Global competition Liberalization by host governments in regard to foreign investment Advances in technology 2- Large International Firms Invest Overseas, and They Also .