Intro ib


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Intro ib

  1. 1. Introduction to International Business (IB) -Prof..RoshniSawantKumar
  2. 2. Syllabus  Introduction to International Business  Porters Diamond Competitive Advantage theory  Methods of Entering International Business  Barriers to International Trade  International Business Strategy  International Business Environment
  3. 3. Books for Reference  International Business : Keegan  International Business :Dr. Chandran  International Business : Francis Cherunilam  International Economics – Salvothar Dominic  International Business – Hill, Charles
  4. 4. Scenario  The world is shrinking rapidly with the advent of faster communication, transportation and financial flows.  International trade is booming  Between 1996 and 2006, U.S. exports have increase by nearly 51%.  Global competition is intensifying
  5. 5. Cont…  To compete, many International companies are continuously improving their products, expanding into foreign markets,  International firms face several major problems:  Inflation, and unemployment have resulted in highly unstable governments & currencies,  Governments placing more regulations on foreign firms  Protectionist policies and trade barriers,  Corruption.
  6. 6. NIKE: a cultural issue  When Nike learned that this stylized “Air” logo resembled “Allah” in Arabic script, it apologized and pulled the shoes from distribution
  7. 7. Colgate Goes to China Using aggressive promotional and educational programs, Colgate has expanded its market share from 7% to 35% in less than a decade
  8. 8. Objectives of IB  To establish trade relation among the nations and to maintain cordial relation among nations for maintaining world peace  To provide better life and welfare to people  To bring country’s closer for trading purpose and to encourage large scale free trade among the country's of the world.
  9. 9.  To provide assistance to developing countries in their economic and industrial growth and to remove or reduce gap between the develop & developing countries .  To keep international trade free and fair to all countries by avoiding trade barriers.  To ensure optimum utilization of resource at the global level.
  10. 10. Call for Int. Business Trade  International interdependence of countries: no country in the world is self sufficient.  Absence of uniform geographic & climatic condition.  Availability of comparative cost advantage  Growing needs of countries  To solve the problem of surplus/shortage of production in countries.
  11. 11.  Bridge the gap between developed and developing nation: i.e. transfer of technical know how and skills .  International cooperation and world peace  Facilitates culture exchange  Provides higher standard of living  Special benefits during emergency situations  Company exporting abroad may earn substantial profits out of its operation
  12. 12. Major International Business Decisions
  13. 13. Looking at the International Business The International Trade System i.e. Tariff, Quota, Exchange Control, and Non-tariff Trade Barriers The World Trade Organization and GATT Treaty designed to promote world trade by reducing tariffs and other international trade barriers Regional Free Trade Zones Group of nations organized to work toward common goals in the regulation of international trade
  14. 14. Patterns of Trade  Trade in goods: commodities, raw materials,part or finished goods-between different locations  Trade in services:travel and tourism,financial services,consultancy,education and training- expanding markets  E-commerce and E-business: using IT to trade across borders  Business with Governments and Agencies- impact of privatization and economic development
  15. 15. Stages of International Marketing  Export Marketing: Ethnocentric: e.g smaller players  International marketing: some overseas activity: e.g Hidesign  Multinational: marketing in countries or regions which differ significantly  Global marketing-Integrated to exploit global opportunities
  16. 16. Export Marketing  Domestic market remains of prime importance  Profitable by product of its domestic strategy  Challenge is to select appropriate markets, determination of appropriate product modifications to meet the requirements and development of export channels
  17. 17. International Marketing  Go beyond exporting and become more directly involved in the local marketing environment within a given country.  Have its own sales subsidiaries,develop entire marketing strategies to fit new market demands.  Need to understand different environments
  18. 18. Multinational Marketing  Result of development of Multinational corporations.  Characterized by extensive development of assets abroad,operate in several foreign countries as if the firms were local companies. This has led to the development of many domestic strategies also called multi-domestic strategy-whereby a MNC competes with many strategies, each tailored to a particular local market.
  19. 19. Cont…  Challenge is to find the best possible adaptation of a complete marketing strategy for an individual country.  Maximum localization
  20. 20. Global Marketing  Single strategy for a product,service, or company for the entire global market. E.g Dell  Aimed at leveraging the commonalities across many markets  Last stage in the development of the field of International Marketing
  21. 21. THANKYOU 