Can YOU define it?

1
INTERNATIONAL BUSINESS UNIT 1Past to
PresentGlobal Business

• Can YOU define it?

2
For centuries, people of the world have traded.
From the ancient silk routes and spice trade to
modern shipping containers and satellite data
transfers, nations have tied their economies to
the rest of the world by complex flows of
products and services. Free trade, which allows
traders to interact without barriers imposed by
government, can improve the living standards of
people because it reduces prices and increases
the variety of goods and services for consumers.
It can also create new jobs and opportunities,
and it encourages innovative uses of resources.
However, even though free trade can benefit an
economy as a whole, specific groups may be hurt.
While certain sectors will experience job gains,
others will face job losses. Still, societies
throughout history have found that the benefits
of international trade outweigh the costs.
WELCOME, LADIES AND GENTLEMEN, TO INTERNATIONAL
BUSINESS.
3
ANY business transactions between two
or more countries activity involving business
operations across national borders to satisfy
objectives of individuals, companies, and
organizations International Business

• DOMESTIC BUSINESS

Any business that conducts business in only one
country (aka home country)
3
4
INTERCHANGEABLE TERMS??

• Multinational corporation (MNC) Transnational
  corporation (TNC) Multinational enterprises
  (MNE) International companyGlobal
  companiesGlobal enterprisesWorldwide companies
  Different title, same concept?
• If in doubt, use the terms international
  business, but each is a little different from the
  other. Click on this website to find out just
  what we mean?http//leeiwan.wordpress.com/2007/06
  /18/difference-between-a-global-transnational-inte
  rnational-and-multinational-company/

5
Does this business qualify as a global enterprise?

• Angel Sanchez was born into a family that ran a
  made-to-order dress business. He was an immediate
  success in Caracas, Venezuela when he launched
  his own label in 1991. Four years later, he
  opened a showroom in New York. He now does
  business around the world. Wedding dresses
  between 3,000 - 7,000

6
Why study International Business?

• We live in a world that is affected by what
  happens in many different parts of the world.
  International Business introduces you to SOME of
  the factors that business today needs to be aware
  of in order to compete in our interconnected and
  interrelated world. What Is Globalism? - YouTube

7
LETS TAKE A TRIP BACK TO THE BEGINNING. . .
8
DID IT ALL START HERE?

• 150,000 years ago
• Bartering
• Direct exchange of goods or services for other
  goods or services without use of money.

9
EUROPE
ASIA
AFRICA
Introduction to Globalization - YouTube
10
41 countires Portugal- Spain- Andorra- United
Kingdom- France- Monaco- Luxembourg- Belgium-
Netherlands- Germany- Switzerland- Liechtenstein-
Italy- San Marino- Vatican City- Malta- Austria-
Slovenia- Croatia- Bosnia-Herzegovina- Hungary-
Yugoslavia- Albania- Greece- FYR Macedonia-
Romania- Bulgaria- Turkey-.. Syria- Iraq-.
Cyprus- Lebanon- Jordania- Israel- Egypt- Lybia-
Tunisia- Algeria- Morocco- Palestine
At the peak of the Roman Empire around 180 AD,
how many of todays countries do you think were
included within this vast Empire?
11

• TRADING ROUTES
• OF THE
• ANCIENT WORLD
• Yesterday and Today

12
THE LONELIEST ROAD IN CHINA THE AMBASSADORS
ROAD

• Built around 200 BC
• important supply route for caravans of mules
  carrying exotic goods to and from southwestern
  China
• Now largely abandoned and unkempt, its paving
  stones are long overgrown with grass or are
  missing completely.
• It has long been known as the Ambassador Road
  since early dignitaries used the route to cross
  back and forth between British-ruled Burma (now
  Myanmar) and China.
• About 1,600 miles from Mainland China to Burma

myanmar
13
Silk road
THE SILK ROAD Yesterday and Today
Extent of Silk Route/Silk Road. Red is land route
and the blue is the sea/water route (4,000 miles)
206 BCE Video The Silk Road Video Silk
Production
14
MYTH OR FACT?

• Some believe that the nursery rhyme "Ring around
  the Rosie" refers to the Black Plague
• "Ring around the Rosie" - red sores on the body -
  first signs of infection
• "Pocket full of Posies" - some used herbs,
  flowers etc. to show others they were infected,
  so people could stay away
• "Ashes Ashes" - the bodies of the infected were
  burned after death
• "We all Fall down" - it was believed that the
  Black Death was the end of the world.

15
AMBER TRADE ROUTE
AMBER ROAD

• Trade of Amber started in New Stone Age 40-60M
  years ago
• Amber is a preserved resin that embalms dust,
  rock sand, insects, flowers, etc
• Prized jewelry today
• The Amber Room - YouTube

16
APPIAN WAY, EGNATION WAY
APPIAN WAY AND EGNATION WAY Formed GREAT EAST
ROAD Sea and land routes that connected the Roman
Empire and the Middle East. It is said to have
been constructed to more efficiently move people
and armies throughout the Roman Empire (2ND
CENTURY B.C.)
Appian way (built 312 BC) 350 miles long Main
sea route
Egnation Way (built 145 BC) 696 miles long Major
land route
17
Spice and Incense Road

• Incense perfume or
• powerful aroma
• Camel-driven caravans traced a 1,500 mile route
  between India and Egypt to trade in exotic
  frankincense, myrrh, sandalwood and rare spices.
  This fabled passage would become forever known as
  the Spice Incense Road

Turkey
Syria Lebanon Israel
Jordan
(IRAQ)
Iraq
Iran (Persia)
Saudi Arabia
Egypt
Sudan
18
(No Transcript)
19
MAJOR OIL CHOKE POINTS, OIL FLOWS, PIPELINES
20

• SUEZ CANAL
• 1869 Located in Egypt (120 mi.)
• Links Mediterranean Sea to Red Sea
• 14 of world shipping
• 2010can accommodate Suezmax tankers
• SUMED
• Pipeline alternative to for cargos too large for
  Canal.
• Closure of the Suez Canal and SUMED Pipeline--add
  6,000 miles of transit around tip of Africa, Cape
  of Good Hope

Mediterranean Sea
Strait of Gilbraltar
Suez Canal
Persian Gulf
Red Sea
Cape of Good Hope
SUMED Pipeline
21
STRAIT OF HORMUZ

• Only sea passage from the Persian Gulf to the
  open ocean.
• One of world's most strategically-important
  chokepoints.
• 20 (16-17M barrels) of the world's petroleum
  passes through the strait.
• Majority of oil exported through the Strait of
  Hormuz travels to Asia, the United States and
  Western Europe.

Strait of Hormuz
22
The Strait of Malacca

• Links Indian and Pacific Oceans.
• Shortest sea route between Middle East and
  growing Asian markets.
• Carries about one-quarter of world's traded goods
  (oil, Chinese manufactures, Indonesian coffee.)
• ¼ of all oil carried by sea passes through the
  strait to Asian markets (China, Japan, and South
  Korea.)
• 1.7 miles at narrowest point, creating a natural
  bottleneck.
• Piracy, including attempted theft and hijackings,
  is a constant threat to tankers in the Strait of
  Malacca.

23
With the Panama Canal increasing in size to
accommodate Suezmax ships it could be a great
thing for American agriculture, especially since
60 of our exports currently travel through the
Panama Canal. 

• Located in Panama
• Connects the Pacific Ocean with the Caribbean Sea
  and Atlantic Ocean.
• 14,000 vessels transit the Canal (60 headed to
  and from United States.
• Closure would greatly increase transit times and
  costs adding over 8,000 miles of travel.
• Vessels would have to reroute around Cape Horn
  located at the tip of South America.
• Canal widened to accommodate Panamax ships.

Cape Horn
23
24
LOOP Louisiana Offshore Oil Port

• 1972 owned by Shell and Marathon
• Handles 13 (1.2M/d of nation's foreign oil
  import and domestic crude.
• Operates the only offshore oil port in the nation
  where supertankers can directly offload their
  cargoes of crude oil.
• Located in Gulf of Mexico, 20 mi. south of Grand
  Isle, Louisiana.

25
KEYSTONE PIPELINE

• 2005Pipeline for oil proposed from Canada to
  U.S.
• Plus 20,000 high paying jobs along pipeline
• Plus Injects 20B into U.S. economy
• Oopsone of largest freshwater reserves in world
  at
• Sand Hills, Nebraska close to pipeline.
• Obamain nations best interest to wait til 2013
• 2012 update rerouting pipeline in Nebraska if
  approved in early 2013

26
Final Frontier The Northern Sea Route
New shipping route only open a few months a
year? Could it save time and money?
A graphical comparison between the North East
Passage (blue) and an alternative route through
Suez Canal (red)
27
COLD WAR IMPACT ON GLOBALIZATION 1946-1991
27
28
The United States wanted to encourage free trade
throughout the world. The Soviet Union wanted to
shield off her own sphere from international
commerce. Russia feared that trade with the West
would involve the risk of Russia being opened to
western influences which would have eroded the
strength of the totalitarian regime. These
differences led to much ill feeling between the
United States and the Soviet Union.
28
29
Shanghai
Suez Canal
Panama Canal
Singapore
Cargo Network -- Nearly 90 percent of worldwide
trade is made possible because products and goods
are transported over the ocean on ships
source
http//news.discovery.com/tech/shipping-network-ma
p.html
Port of Long Beach Life of Ocean Container -
Learn international shipping Export
Documentation YouTube Stopping Terrorism -
Container Port Security - VOA Story - YouTube