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International business and trade

Discuss the basic forms of conducting international business (export/import, licensing/franchising, contract manufacturing/outsourcing, joint ventures/alliances, and direct investment), and basic international business strategies (multinternational vs global)

Discuss the trade (economic reason why trade occurs,) the role of the World Trade Organization, regional trade agreements, and the barriers to international trade

Discuss the business ethics (concept, common issues, ethical decision factors), actions to promote ethical behavior, social responsibility (concept/dimensions, consumerism), and the business legal environment (source of law, resolution of disputes)

Plus references.

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Discuss the basic forms of conducting international business (export/import, licensing/franchising, contract manufacturing/outsourcing, joint ventures/alliances, and direct investment), and basic international business strategies (multinternational vs. global)

Export/import business- Import export businesses, also known as international trading, are one of the hottest commercial trends of this decade. American companies trade in over 2.5 trillion dollars a year in merchandise, of which small businesses control over 95 percent. As the owner of an import export enterprise, you can work as a distributor by focusing on exporting and importing goods and services that cannot be obtained on national soil (e.g., Russian caviar and French perfumes) or those that are cheaper when imported from other countries (e.g., Chinese electronics).
Source: Wise Geek. "What is an Import Export Business?" http://www.wisegeek.com/what-is-an-import-export-business.htm. April 8, 2011.

Licensing/franchising- Licensing, in the business world, is a contractual agreement to use a brand name, patent or property that is owned by another business entity. For example, a greeting card company can obtain a license to use images of Hannah Montana or "The Simpsons" characters on greeting cards.

A franchise is a business that operates under an existing brand name. Many popular businesses are franchises, including McDonald's, Subway and H&R Block.
Source:
eHow.com. "Definition of Licensing & Franchising". http://www.ehow.com/about_6068927_definition-licensing-franchising.html#ixzz1J1twLbLG. April 9, 2011.

Contract manufacturing-This refers to an arrangement wherein an international business places orders with local manufacturers for the production of goods it then sells locally or exports to other foreign markets. An example, when Coca-Cola staged a comeback to India in the early 1990s, it chose local bottling plant to bottle its cola. Local manufacturing can be dovetailed to the needs of local distribution arrangements and several cost savings benefits may be availed of.
Source:
Google Books. "International Business". http://books.google.com.ph/books. April 9, 2011.

Outsourcing- Outsourcing, in literal terms, means sourcing from outside. The term is increasingly used to refer to sub-contracting of a set of functions or processes by one firm to another, or to a group of individuals. The latter organization is often in another physical location, or another country altogether.

Currently, outsourcing takes many forms. Organizations still hire service providers to handle distinct business processes, such as benefits management. But some organizations outsource whole operations. The most common forms are information technology outsourcing (ITO) and business process outsourcing (BPO).
Sources:
Indian Child. "What is ...

Solution Summary

This solution discuss the basic forms of conducting international business (export/import, licensing/franchising, contract manufacturing/outsourcing, joint ventures/alliances, and direct investment), and basic international business strategies (multinational vs global). It discusses also the economic reason why trade occurs, the role of the World Trade Organization, regional trade agreements, and the barriers to international trade.

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