International Business Facts
ü Comparative advantage is the idea that individuals, companies, & countries should specialize in what they do best.(ex. U.S. producing automobile cars)
ü Goods & services that are purchased abroad are called imports.
ü Sales made over the World Wide Web are also known as e-commerce.
ü An agreement that permits one company to sell another company’s products abroad in return for a percentage of the company’s revenues is known as a licensing agreement.
ü Companies can sell their products or services in foreign countries by forming a strategic alliance, becoming a multinational corporation, and working through a foreign intermediary.
ü The largest exporter in the world is the United States.
ü Another name for money is currency.
ü Free trade opens up new markets in other countries.
ü Restrictions on trading allows the following:
o foreign competitors to lower the demand for products made at home
o companies at home to be protected from unfair foreign competition
o other countries to have the same environmental or human right standard
Forms of Business Ownership Facts
&
Company Profiles
ü There are three (3) main types of business organizations: sole proprietorships, partnerships, and corporations.
ü Over half of all businesses in the United States are sole proprietorships (owned by one person)..
ü Income from a corporation is taxed twice.
ü The most common type of business in the United States are sole proprietorships.
ü Unlimited liability means the owner is responsible for the company’s debts.
ü An advantage of a partnership (company owned by more than one person) is
· that the partners make decisions together.· that banks are often more willing to lend money to a partnership than to a sole proprietorship.
· that the partners often bring different skills and talents to the business.
ü In order to start a corporation, the first thing one must do is obtain a corporate charter from the state government.
ü One disadvantage that corporations (medium-large companies that typically trade stocks) face is double taxation,
ü Nonprofit organizations focus on providing services rather than making a profit.
Franchises
See PowerPoint handout and blog on more detailed information on franchises addressing topics and questions below
ü What is a franchise (Ex. McDonald’s)?
ü What are some costs & fees associated with starting a franchise?
ü What are advantages of running a franchise?
ü What are disadvantages of running a franchise
Entrepreneurship
See PowerPoint handout and blog on more detailed information on entrepreneurship addressing topics and questions below
ü What are the 6 types of Entrepreneurial Businesses?
ü How many employees do small business entrepreneurs typically employ?
ü What are advantages of entrepreneurship?
ü What are disadvantages of entrepreneurship?