MIDTERM PERIOD •Citigroup citicorp contains two core businesses, Global

Consumer Banking and Institutional Clients Group. Citi

WHAT ARE THE OPPORTUNITIES IN INTERNATIONAL BUSINESS? Branded Cards is the world's largest credit card issuer.
International business also increases competition in domestic markets and
•Coca-cola company, etc-is an American multinational
introduces new opportunities to foreign markets. Global competition
beverage corporation headquartered in Atlanta, Georgia. The
encourages companies to become more innovative and efficient in their
use of resources. For consumers, International business introduces them to Coca-Cola Company has interests in the manufacturing,
a variety of goods and services. retailing and marketing of nonalcoholic beverage concentrates
and syrups.
HOW CAN INTERNATIONAL TRADE AFFECT THE PHILIPPINE ECONOMY?
International trade though has also its own disadvantages...it can lead to These companies have independent operations in each
over-specialization, for example, with workers losing their jobs when world country, and each country has its own set of offices,
demand for their product falls or when goods for domestic consumption
employees, etc. In fact, even the products and marketing
can be produced more cheaply abroad.
campaigns are customized as per local needs.
HOW CAN I START TRADING BUSINESS IN PHILIPPINES?
Basic requirements and procedure in registering a sole proprietor business: WHY SHOULD I STUDY INTERNATIONAL BUSINESS?
1. Register a business name at Department of Trade and Industry come-up In a nutshell, students need to develop a global perspective in
with three (3) business names such as.... order to be successful in business. Studying international
2. Registration with Barangay... business allows you to see how globalization has brought
3. Register your business in the Mayor's office about an increasing "connectedness" of businesses, markets,
4. Register your business in the Bureau of Internal Revenue (BIR)
people and information across countries.
TOP 9 FACED PROBLEMS BY INTERNATIONAL MARKETING
•Tariff barriers: Tariff barriers indicate taxes and duties HOW DO INTERNATIONAL ORGANIZATIONS HELP OUR
imposed on imports. COUNTRY ECONOMY?
•Administrative policies: advertisements: bureaucratic rules or Their functions include maintaining standards to ensure safety,
administrative procedures - both in guest countries and host countries helping developing countries achieve economic security, and
make international (export and/or import) marketing harder. Some establishing norms regarding how countries make trade
countries have too lengthy formalities that exporters and importers have to agreements and resolve conflicts.
clear.
•Considerable diversities: different countries have their own unique
WHAT ARE THE EFFECTS OF MULTINATIONAL
civilization and culture. They pose special problems for international
marketers. CORPORATIONS IN THE PHILIPPINES ECONOMY?
•Political instability or environment- political atmosphere in different Western businesses with Philippine offices may have a huge
courtiers offer opportunities or pose challenges to international marketers.. competitive advantage over their non-remote office peers. The
Governments in different nations have their priorities, philosophies and available tax cuts, rewards, and numerous other benefits
approaches to their peal international trades. offered by the Philippine government make establishing an
•Place constraints (Diverse Geography) -trade in foreign countries of far overseas office easier than ever.
distance itself practically difficult. In case of perishable products, it is a
real challenge. Exporting and. importing products via sea route and
WHAT ARE THE FOUR MAIN TYPES OF INTERNATIONAL
making arrangements for effective selling involves more time as well risks.
•Variations in Exchange Rates- every nation has its currency that is to be BUSINESS STRATEGY?
exchanged with currencies of other nations. Currencies are traded every The two dimensions result in four basic global business
day and rates are subjects to change. strategies:
•Norms and ethics challenges-ethics refers to moral principles, 1.Export-are explained as the goods & services manufactured
standards, and norms of conduct governing individual and firm's behaviour. in one country and acquired by citizens of another country. The
They are deeply reflected in formal laws and regulations. In different parts export of god and service can be anything. This trade can be
of the world, different codes of conduct are specified that every
done through shipping, e-mail, transmitted in private luggage
international business player has to observe. Corruption is another issue
on a plane.
relating to business ethics.
•Terrorism and racism- terrorism is a global issue, a worldwide problem.
People of the world are living under constant fear of terrorists attracts 2.Standardization- the goal of standardization is to ensure
anywhere in the world. To trade internationally is not economically risky, uniformity to certain practices within the industry.
but there is the threat to life. Racism also restricts international trade Standardization focuses on the product creation process,
activities. operations of businesses, technology in use, and how specific
compulsory process are instituted or carried out.
• Other difficulties
Besides these problems, there are many obstacles in international markets
3. Multi-domestic strategy- is a strategy by which companies
such as:
a. Changing ecological environment and global warming try to achieve maximum local responsiveness by customizing
b. Difference in weathers and natural climates both their product offering and marketing strategy to match
c.Inappropriate or inadequate role of international agencies supporting different national conditions.
regulating international trades. and
d. Natural and man-made calamities 4. Transnational strategy is a set of planned actions defined
e.Difference in currencies, weights, standards, measures, and marketing by a company to have operations in markets abroad. This term
methods
generally applies to the method and structures that allow a
f. Protectionist approach of some countries
firm to initiate and maintain functions in foreign countries while
g. Economic crisis across the globe
preserving central coordination at one specific location.
WHAT IS INTERNATIONAL BUSINESS EXAMPLES?
Some such examples are International business strategies must balance local
• Amazon - international shipping made easy through the Amazon Global responsiveness and global integration.
program. Amazon global ships millions of products to over 100 countries.
4 TYPES OF INTERNATIONAL BUSINESS Your business structure affects how much you pay in taxes,
your ability to raise money, the paperwork you need to file, and
•EXPORTING: exporting is often the first choice when manufacturers your personal liability. You need to choose a business structure
decide to expand abroad.
before you register your business with the state. Most
•LICENSING: licensing is another way to expand one's operations
businesses will also need to get a tax ID number and file for
internationally.
•FRANCHISING: advertisements a franchise is a type of license that grants the appropriate licenses and permits.
a franchisee access to a franchisor's proprietary business knowledge,
processes and trademarks, thus allowing the franchisee to sell a product or
service under the franchisor's business name.
•FOREIGN DIRECT INVESTMENT (FDI): is an investment if the form of a
controlling ownership in a business in one country by an entity based in
another country. It is thus distinguished from a foreign portfolio investment
by a notion of direct control.

WHAT ARE THE 3 FORMS OF BUSINESS?

1. SOLE PROPRIETORSHIP is an unincorporated business with only one
owner who pays personal income tax on profits earned. Sole proprietorship
are easy to establish and dismantle, due to a lack of government
involvement, making them popular with small business owners and
contractors.
Therefore, the owner's equity section of the balance sheet includes only
one items-the equity of the owner. However, the owner's equity can be
broken down into three accounts to record different types of equity
transactions.
•Retained earnings represents the accumulation of net income earned over
the business' existence.
•Owner's Contributions used to record the capital contributions made by
the owner.
• Owner's Draws - used to record the capital withdrawals made by the
owner.

2. PARTNERSHIP a legal form of business operation between two or more

individuals who share management and profits. The federal government
recognizes several types of partnerships. In a general partnership, the
partners manage the company and assume responsibility for the
partnership's debts and other obligations.
Accountants use the term partners' equity instead of owners' equity and
usually lists separately the amount of each partner's equity in the business.
Similar to the sole proprietorship, the partner's equity can also be broken
down into three accounts, for each partner, to record different types of
equity transactions:
Partner 1 equity:
• Partner 1 retained earnings
• Partner 1 contributions
• Partner 1 draws
Partner 2 equity:
• Partner 2 retained earnings
• Partner 2 contributions
• Partner 2 draws
Total Partners' equity
• Partners' retained earnings
• Partners' contributions
• Partners' draws

3. CORPORATION sometimes called a C corp, is a legal entity that's

separate from its owners. Corporations can make a profit, be taxed, and
can be held legally liable. Corporations offer the strongest protection to its
owners from personal liability, but the cost to form a corporation is higher
than other structures.

In the case of large corporations, this clearly would be impractical

because these businesses may have several million individual stockholders
(owners). owners equity (also refereed to as stockholders' equity or
shareholders' equity) is presented in two amounts.

OWNERS' EQUITY:
•Capital stock represents the amount that the stockholders originally
invested in the business in exchange from shares of the company's stock.

•Retained earnings - the balance represents the total net income of the
corporation over the entire lifetime of the business, less all of the dividends
ti its stockholders (a dividend is a distribution of profits to stockholders). in
short, retained earnings represents the earnings that had been retained by
the corporation to finance growth.