INSTRUCTOR’S MANUAL

CHAPTER
Understanding
1 International Trade

Learning Outcomes
After reading this chapter, the students should be able to:
ü Understand Fundamentals of International Business
ü Differentiate between International Trade & Local
ü Identify the activities of International Business: Import & Export

Key Teaching Points

Key Terminologies
International trade: is the act of buying or selling or barter trade of goods that runs across the border.
International business always deals with Import and Export of cargoes. Sometimes, the cargo too can
be substituted with services. This has always got to do with any cross border commercial transaction.

Import: the act of bringing in cargo into the country from another country

Export: the act of pushing out the cargo from base country to another country

Teaching Tip: The instructor is proposed to encourage students to surf the website for Matrade and Miti at
the followings links http://www.matrade.gov.my/ and http://www.miti.gov.my/

What is International Business?

To give exposure to students on the history of trades in Malaysia. Refer to Table 1.1 for Malaysia’s 50
year trade comparison.

To encourage students to understand the latest Malaysia export in RM billion and also to know
Malaysia’s trading partners (Table 1.2 and 1.3). As this information is dated, students need to do
research to know the latest position.

To allow student to differentiate between international trade and domestic trades through four
dimensions that is
ü Currency
ü Availability of resources
ü Cultures
ü Legal system

Teaching Tip: Students are encouraged to research the new statistics for Malaysia especially after the
signing of the TPPA agreement.
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2

What is International Business Activities?

International business activities only focuses on two items that is import and export. Students should
be led to understand these 2 concepts and able to justify its importance.

Teaching Tip: For years Malaysia has been relying on oil to help balance the national budget. Conduct
an open discussion with the students to find Malaysia’s export strength to replace oil as its major export
revenue generator.

Teaching Tip: Use the Power Point in Chapter 1 for visual aid.

Teaching Tip: The students are encouraged to answer the multiple choice questions that are readily
available in the companion website.

Teaching Tip: At the end of Chapter 4, the instructor must encourage students to complete the worksheet
available in the companion website. Points can be awarded for completing the worksheet based on the
lecturer’s predetermined grading scale.