Introduction to international business

2. Need for International Business
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 Flow of ideas, services, and capital.
 New choices
 M&A
 Mobility of labor, capital and technology
 Employment opportunities

3. Types of International Business
3
Export-import trade
Foreign direct
investment
Licensing
Franchising
Management contracts

4. The Smoot-Hawley Act
 The the 1930’s, the U.S. passed the Smoot-
Hawley Act, which raised import duties to
reduce the volume of goods coming into the
U.S.
 The act was passed in the hope that it would
restore domestic employment.
 The result was a worldwide depression and the
collapse of the world financial system.
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5. The Current U.S. International
Trade Position
5
Exports and Imports of Goods and Services per Capita
for Selected Countries
Country Exports per Capita Imports per Capita
Australia
Brazil
China
Japan
Kenya
United Kingdom
United States
$4,296
379
222
4,165
91
4,767
3,472
$4,525
428
199
3,622
125
5,500
4,962

6. Emerging market and international
business
 BRICS
 Mena and Latin America
 FDI

7. Why Companies Engage
in International Business
 To expand sales
 Acquire resources
 Minimize risk
 To increase profit

8. International businesses and
resistance to their activities
 G-local phenomenon
 Rules and procedures in all countries
 National Sovereignty vs. Supranational Corporations

9. International Business: The
Resource Wars
 Finite resources and infinite consumption
 Economic development
 Changing living of standards
 Wining race between developed and developing
countries
 Sustain consumption.

10. Risks Faced by International
Businesses in Developing Countries
 Political instability
 Economic risk
 Societal risk

11. Benefits of Foreign Investment to
Target Countries
 Import and export
 Generating jobs
 Technology and knowledge transfer
 foreign currency
 Foreign investment is more stable than fund inflow

12. The Role of Governments in
Encouraging International Businesses
 To bring expertise and develop particular sector
 Allowing FDI
 Admission into WTO

13.  Australia -Woolworths
 Hong Kong -Mass Transit Railway (MTR)
 India -Infosys Technologies
 Indonesia -Astra International
 Japan -Toyota Motor
 Malaysia -Genting
 Philippines -Jollibee Foods
 Singapore -Singapore Airlines
 South Korea -Samsung Electronics
 Taiwan -Taiwan Semiconductor Manufacturing
 Thailand -Charoen Pokphand Group (CP)
ACNielsen International Research
(Hong Kong)

14. 1. Infosys Technologies
2. Reliance Industries
3. Wipro
4. Hero Honda Motors
5. Dr. Reddy's Laboratories
6. Larsen & Toubro
7. Ranbaxy Laboratories
8. ITC
9. Cipla
10. ICICI
India Top 10 Companies ranked for
Overall Leadership are:

15. Name Roll No.
Rohit Jadhav 16
Vaibhav Jangale 18
Prachi Jogle
Nilesh Sargam
Sandip Yadav 48