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1、Lesson1InternationalBusinessInternationalbusinessreferstotransactionbetweenpartiesfromdifferentcountries.Sometimesbusinessacrossthebordersofdifferentcustomsareasofthesamecountryisalsoregardedasimport,suchasbusinessbetweenHongKongandTaiwan.Internationbusinessinvolvesmorefactorsandthusismorecomp
2、licatedthandomesticbusiness.Thefollowingsaresomemajordifferencesbetweenthetwo:1.Thecountriesinvolvedoftenhavedifferentlegalsystems,andoneormorepartieswillhavetoadjustthemselvestooperateincompliancewiththeforeignlaw.2.Differentcountriesusuallyusedifferentcurrenciesandthepartieswillhavetodecidew
3、hichcurrencytouseanddoeverythingnecessaryasregardsconversionetc.Uncertaintiesandevenrisksareofteninvolvedintheuseofaforeigncurrency.3.Culturaldifferencesincludinglanguage,customs,traditions,religion,value,behavioretc.oftenconstitutechallengesandeventrapsforpeopleengagedininternationalbusiness.
4、4.Countriesvaryinnaturalandeconomicconditionsandmayhavedifferentpoliciestowardsforeigntradeandinvestment,makinginternationalbusinessmorecomplexthandomesticbusiness.Withthedevelopmentofeconomicglobalization,fewpeopleorcompaniescancompletelystayawayfrominternationalbusiness.Someknowledgeinthisre
5、spectisnecessarybothforthebenefitofenterprisesandpersonaladvancement.Internationalbusinessfirsttooktheformofcommoditytrade,i.e.exportingandimportinggoodsproducedormanufacturedinonecountryforconsumptionorresaleinanother.Thisformoftradeisalsoreferredtoasvisibletrade.Lateradifferentkindoftradeint
6、heformoftransportation,communication,banking,insurance,consulting,informationetc.graduallybecamemoreandmoreimportant.Thistypeoftradeiscalledinvisibletrade.Today,theyconstituteover60%oftheirgrossdomesticproductsandaccountforanincreasingproportionofworldtrade.Anotherimportantformofinternationalb
7、usinessissupplyingcapitalbyresidentsofonecountrytoanother,knownasinternationalinvestment.Suchinvestmentscanbeclassifiedintotwocategories.Thefirstkindofinvestments,foreigndirectinvestmentsorFDIforshortismadeforreturnsthroughcontrollingth