International

Business
& Global
condition
Why Go Global?

ATTRACT FOREIGN CAPITALIZE ON USE INEXPENSIVE DIVERSIFY

DEMAND TECHNOLOGY  RESOURCES  INTERNATIONALLY
 Importing 

Exporting 
Conducting
international Direct foreign investment
business
Outsourcing 

Strategic alliances 
Barriers to international Trade

TARIFF QUOTA  OTHER

BARRIERS

Other Barriers includes regulations regarding Product content or quality, packaging

and shipping regulation, Import & export licenses, Subsidies, Voluntary export
restraints, Local content requirements, Embargo, Currency devaluation
 Culture 

Economic system 
Factors to
Economic conditions 
consider
Exchange rates 

Political risk and regulations

 • Market economies or Capitalism 
Economic • Command economies or Socialism 
systems • Mixed economies 
• Islamic economies 
 Invisible hand theory 

Capitalism
Competition and profit 
Communism &
Socialism
• Presence of central authority 
• Ownership and control of
government 
• Some of private enterprise in
modern command economy 
• State makes major decisions 
 • Presence of both private and
Mixed public enterprise 
economies • Combination of good sides of
capitalism and socialism
 • Prohibition of Riba (Interest) 
Islamic • Islamic Shariyah 
economies • Proper distribution of funds 
Thank you!