Introduction to Business Lecture Notes:Foreign Direct Investment (FDI):-When a domestic company opens either a manufacturing or a service facility in a foreign country.Multinational Cooperation:-If a business does business with two or more countries.Sovereign Wealth Funds (SWFs):-Funds invested by foreign business that is in part owned by a foreign government.Forces Affect Global Trading:-Socio-cultural-Cultural differences. *Social Structures*Religion*Manners*Values*Language*Personal CommunicationEthnocentricity: When you believe that your country is superior and you don’t want to learn others culture.Exchange Rates:-The value of one nations currency relative to the other nations currency.-Currencies float in the world marketDevaluation:When government controls currency and purposely keeps it down than what it should be.Countertrading:Takes place in world market place, 20% of trading is countertrading.Legal Concerns Oversea:-There’s no global system of laws-Laws may be inconsistent-1978 Foreign Corrupt Practices Act-Physical Forces-Technology ProblemsTrade Protectionism:-When a government uses any policy to promote domestic businesses and is a violation of fair trade.Tarriffs-When extra taxes are charged on imported goods-Protective -RevenueImport Quota: Sets limits on imported goodsTrade Embargo- Absolutely no trading with other