INTRODUCTIONINTRODUCTION
TOTO
INTERNATIONAL BUSINESSINTERNATIONAL BUSINESS
&&
MANAGING INTERNATIONALMANAGING INTERNATIONAL...
JUST PONDER OVER THIS !!!JUST PONDER OVER THIS !!!
►There is a shortage ofThere is a shortage of
radiologists in the Unite...
► Outsourcing health care is not only limited toOutsourcing health care is not only limited to
radiology; we are beginning...
THE ANSWER IS OBVIOUSLYTHE ANSWER IS OBVIOUSLY ‘NO’‘NO’ BUT ITBUT IT
JUST MAKES ONE START THINKING ABOUTJUST MAKES ONE STA...
DEFINITIONDEFINITION
►International BusinessInternational Business refers to allrefers to all
business transactionsbusines...
3 important terms3 important terms
► AnAn international businessinternational business is any firm thatis any firm that
en...
Contd…Contd…
► ‘‘Any business transaction between partiesAny business transaction between parties
from more than one count...
There are several terms which are used toThere are several terms which are used to
describe companies which do business in...
► Global CompanyGlobal Company (GC)(GC) ––
Describes an organisation that attempts toDescribes an organisation that attemp...
INTERNATIONAL BUSINESSINTERNATIONAL BUSINESS
SCOPESCOPE
► 3 decades ago very few companies3 decades ago very few companies...
► Today, the whole world is open. Duties,Today, the whole world is open. Duties,
licence, quotas and other investmentlicen...
Objectives of IBObjectives of IB
► To establish trade relation among the nationsTo establish trade relation among the nati...
Contd…Contd…
► To provide assistance to developing countriesTo provide assistance to developing countries
in their economi...
Call for Int. Business TradeCall for Int. Business Trade
► International interdependence of countries: noInternational int...
Contd…Contd…
► Bridge the gap between developed andBridge the gap between developed and
developing nation: i.e. transfer o...
INTERNATIONAL BUSINESSINTERNATIONAL BUSINESS
REASONS TO ENTER INTERNATIONAL BUSINESSREASONS TO ENTER INTERNATIONAL BUSINES...
FROM AN INDIVIDUAL COMPANY’sFROM AN INDIVIDUAL COMPANY’s
ANGLEANGLE
1)1) MANAGING THE PRODUCT LIFE CYCLEMANAGING THE PRODU...
5)5) TECHNOLOGY ADVANTAGETECHNOLOGY ADVANTAGE
6)6) BUILDING A CORPORATE IMAGEBUILDING A CORPORATE IMAGE
7)7) LABOUR ADVANT...
FROM A GOVERNMENTFROM A GOVERNMENT
ANGLEANGLE
1)1) EARNING VALUABLE FOREIGN EXCHANGEEARNING VALUABLE FOREIGN EXCHANGE
2)2)...
DOMESTIC BUSINESS V/s INT. BUSINESSDOMESTIC BUSINESS V/s INT. BUSINESS
DIMENSIONDIMENSION DOMESTIC BUSINESSDOMESTIC BUSINE...
DIMENSIONDIMENSION DOMESTICDOMESTIC
BUSINESSBUSINESS
OPERATIONSOPERATIONS
INT. BUSINESSINT. BUSINESS
OPERATIONSOPERATIONS
...
DIMENSIONDIMENSION DOMESTICDOMESTIC
BUSINESSBUSINESS
OPERATIONSOPERATIONS
INT. BUSINESSINT. BUSINESS
OPERATIONSOPERATIONS
...
DIMENSIONDIMENSION DOMESTICDOMESTIC
BUSINESSBUSINESS
OPERATIONSOPERATIONS
INT. BUSINESSINT. BUSINESS
OPERATIONSOPERATIONS
...
DIMENSIONDIMENSION DOMESTICDOMESTIC
BUSINESSBUSINESS
OPERATIONSOPERATIONS
INT. BUSINESSINT. BUSINESS
OPERATIONSOPERATIONS
...
DIMENSIONDIMENSION DOMESTICDOMESTIC
BUSINESSBUSINESS
OPERATIONSOPERATIONS
INT. BUSINESSINT. BUSINESS
OPERATIONSOPERATIONS
...
DIMENSIONDIMENSION DOMESTICDOMESTIC
BUSINESSBUSINESS
OPERATIONSOPERATIONS
INT. BUSINESSINT. BUSINESS
OPERATIONSOPERATIONS
...
DIMENSIONDIMENSION DOMESTICDOMESTIC
BUSINESSBUSINESS
OPERATIONSOPERATIONS
INT. BUSINESSINT. BUSINESS
OPERATIONSOPERATIONS
...
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Lect 1

  1. 1. INTRODUCTIONINTRODUCTION TOTO INTERNATIONAL BUSINESSINTERNATIONAL BUSINESS && MANAGING INTERNATIONALMANAGING INTERNATIONAL BUSINESS ORGANIZATIONSBUSINESS ORGANIZATIONS Ms. MAMTA D. Faculty in IB, DYPDBM mamta_18_6@yahoo.co.in
  2. 2. JUST PONDER OVER THIS !!!JUST PONDER OVER THIS !!! ►There is a shortage ofThere is a shortage of radiologists in the Unitedradiologists in the United States and demand for theirStates and demand for their services is growing twice asservices is growing twice as fast as the rate of graduation.fast as the rate of graduation. What should be done?What should be done? Solution to the Problem: Send images over the Internet to be interpreted by radiologists in India
  3. 3. ► Outsourcing health care is not only limited toOutsourcing health care is not only limited to radiology; we are beginning to see patients travelradiology; we are beginning to see patients travel internationally for treatments as well as surgeryinternationally for treatments as well as surgery ► In 2004 some 170,000 foreigners visited India forIn 2004 some 170,000 foreigners visited India for medical treatments; the number is expected to growmedical treatments; the number is expected to grow at 15% for the next several yearsat 15% for the next several years ► Question: Will demand for American health servicesQuestion: Will demand for American health services soon collapse as work moves offshore to places likesoon collapse as work moves offshore to places like India?India? THE FACT OF THE MATTER IS ….
  4. 4. THE ANSWER IS OBVIOUSLYTHE ANSWER IS OBVIOUSLY ‘NO’‘NO’ BUT ITBUT IT JUST MAKES ONE START THINKING ABOUTJUST MAKES ONE START THINKING ABOUT THE IMPLICATIONS OF SUCH EVENTS?THE IMPLICATIONS OF SUCH EVENTS? It only means that Economies across the world are getting more and more dependent on each other. And this dependence is for the better for each one will do things that they can do better. This of course will have commercial implications and give rise to INTERNATIONAL BUSINESS in a Globalized Market
  5. 5. DEFINITIONDEFINITION ►International BusinessInternational Business refers to allrefers to all business transactionsbusiness transactions bothboth private andprivate and governmentalgovernmental that involve participantsthat involve participants fromfrom two or more countries.two or more countries. ► What is International Business?What is International Business?
  6. 6. 3 important terms3 important terms ► AnAn international businessinternational business is any firm thatis any firm that engagesengages in international trade or investmentin international trade or investment ► International tradeInternational trade occurs when a firmoccurs when a firm exportsexports goods or services to consumers ingoods or services to consumers in another countryanother country ► International investmentInternational investment occurs when aoccurs when a firmfirm investsinvests resources in business activitiesresources in business activities outside its home countryoutside its home country
  7. 7. Contd…Contd… ► ‘‘Any business transaction between partiesAny business transaction between parties from more than one country is part offrom more than one country is part of international business’.international business’. ► The examples of such transactions include:The examples of such transactions include: ► Buying raw materials or inputs in one country andBuying raw materials or inputs in one country and shipping them to another country for processing orshipping them to another country for processing or assemblyassembly ► Shipping finished products from one country toShipping finished products from one country to another for retail saleanother for retail sale ► Building a plant in a foreign country to capitalizeBuilding a plant in a foreign country to capitalize on lower labour costson lower labour costs ► Borrowing money from a bank in one country toBorrowing money from a bank in one country to finance operations in another.finance operations in another.
  8. 8. There are several terms which are used toThere are several terms which are used to describe companies which do business indescribe companies which do business in more than one country.more than one country. These are:These are: ► Multinational Company or EnterpriseMultinational Company or Enterprise (MNC or MNE)(MNC or MNE) -- Refers to large firms with extensive operationsRefers to large firms with extensive operations in many countriesin many countries (owns relatively autonomous subsidiaries in(owns relatively autonomous subsidiaries in various host countries).various host countries).
  9. 9. ► Global CompanyGlobal Company (GC)(GC) –– Describes an organisation that attempts toDescribes an organisation that attempts to standardise operations world-wide in allstandardise operations world-wide in all functional areas.functional areas. ► Transnational CorporationTransnational Corporation (TNC)(TNC) –– Term used by UN and some others to connoteTerm used by UN and some others to connote organisations variously called multinational,organisations variously called multinational, global, or worldwide companies.global, or worldwide companies.
  10. 10. INTERNATIONAL BUSINESSINTERNATIONAL BUSINESS SCOPESCOPE ► 3 decades ago very few companies3 decades ago very few companies ventured into the international arena andventured into the international arena and most of those who did restrictedmost of those who did restricted themselves to the physical movement ofthemselves to the physical movement of goods and services i.e., Imports andgoods and services i.e., Imports and exports.exports. ► Restrictions, regulations and otherRestrictions, regulations and other barriers prevented them from taking risks.barriers prevented them from taking risks. Why should one do international business ?Why should one do international business ?
  11. 11. ► Today, the whole world is open. Duties,Today, the whole world is open. Duties, licence, quotas and other investmentlicence, quotas and other investment limitations have gradually beenlimitations have gradually been eliminated. Anyone can do business ineliminated. Anyone can do business in any part of the world.any part of the world. ► Risk factors are properly analysed andRisk factors are properly analysed and evaluated and information about themevaluated and information about them is abundant. The aspiring internationalis abundant. The aspiring international businessman can go to any part of thebusinessman can go to any part of the world.world.
  12. 12. Objectives of IBObjectives of IB ► To establish trade relation among the nationsTo establish trade relation among the nations and to maintain cordial relation among nationsand to maintain cordial relation among nations for maintaining world peacefor maintaining world peace ► To provide better life and welfare to peopleTo provide better life and welfare to people ► To bring country’s closer for trading purposeTo bring country’s closer for trading purpose and to encourage large scale free tradeand to encourage large scale free trade among the country's of the world.among the country's of the world.
  13. 13. Contd…Contd… ► To provide assistance to developing countriesTo provide assistance to developing countries in their economic and industrial growth and toin their economic and industrial growth and to remove or reduce gap between the develop &remove or reduce gap between the develop & developing countries .developing countries . ► To keep international trade free and fair to allTo keep international trade free and fair to all countries by avoiding trade barriers.countries by avoiding trade barriers. ► To ensure optimum utilization of resource atTo ensure optimum utilization of resource at the global level.the global level.
  14. 14. Call for Int. Business TradeCall for Int. Business Trade ► International interdependence of countries: noInternational interdependence of countries: no country in the world is self sufficient.country in the world is self sufficient. ► Absence of uniform geographic & climaticAbsence of uniform geographic & climatic condition.condition. ► Availability of comparative cost advantageAvailability of comparative cost advantage ► Growing needs of countriesGrowing needs of countries ► To solve the problem of surplus/shortage ofTo solve the problem of surplus/shortage of production in countries.production in countries.
  15. 15. Contd…Contd… ► Bridge the gap between developed andBridge the gap between developed and developing nation: i.e. transfer of technicaldeveloping nation: i.e. transfer of technical know how and skills .know how and skills . ► International cooperation and world peaceInternational cooperation and world peace ► Facilitates culture exchangeFacilitates culture exchange ► Provides higher standard of livingProvides higher standard of living ► Special benefits during emergency situationsSpecial benefits during emergency situations ► Company exporting abroad may earnCompany exporting abroad may earn substantial profits out of its operationsubstantial profits out of its operation
  16. 16. INTERNATIONAL BUSINESSINTERNATIONAL BUSINESS REASONS TO ENTER INTERNATIONAL BUSINESSREASONS TO ENTER INTERNATIONAL BUSINESS ►FROM AN INDIVIDUALFROM AN INDIVIDUAL COMPANY’s ANGLECOMPANY’s ANGLE ►FROM THE GOVERNMENTFROM THE GOVERNMENT ANGLEANGLE
  17. 17. FROM AN INDIVIDUAL COMPANY’sFROM AN INDIVIDUAL COMPANY’s ANGLEANGLE 1)1) MANAGING THE PRODUCT LIFE CYCLEMANAGING THE PRODUCT LIFE CYCLE 2)2) GEOGRAPHIC EXPANSION AS A GROWTHGEOGRAPHIC EXPANSION AS A GROWTH STRATEGYSTRATEGY 3)3) THE ADVENTUROUS SPIRIT OF THETHE ADVENTUROUS SPIRIT OF THE YOUNGER GENERATIONYOUNGER GENERATION 4)4) CORPORATE AMBITIONCORPORATE AMBITION
  18. 18. 5)5) TECHNOLOGY ADVANTAGETECHNOLOGY ADVANTAGE 6)6) BUILDING A CORPORATE IMAGEBUILDING A CORPORATE IMAGE 7)7) LABOUR ADVANTAGELABOUR ADVANTAGE 8)8) NEW BUSINESS OPPORTUNITIESNEW BUSINESS OPPORTUNITIES
  19. 19. FROM A GOVERNMENTFROM A GOVERNMENT ANGLEANGLE 1)1) EARNING VALUABLE FOREIGN EXCHANGEEARNING VALUABLE FOREIGN EXCHANGE 2)2) INTERDEPENDENCY OF NATIONSINTERDEPENDENCY OF NATIONS 3)3) CORE COMPETENCY OF NATIONSCORE COMPETENCY OF NATIONS 4)4) NATIONAL IMAGENATIONAL IMAGE 5)5) WTO AND INTERNATIONAL AGENCIESWTO AND INTERNATIONAL AGENCIES
  20. 20. DOMESTIC BUSINESS V/s INT. BUSINESSDOMESTIC BUSINESS V/s INT. BUSINESS DIMENSIONDIMENSION DOMESTIC BUSINESSDOMESTIC BUSINESS OPERATIONSOPERATIONS INT. BUSINESSINT. BUSINESS OPERATIONSOPERATIONS 1.1. ENVIRONMENTENVIRONMENT THE ECONOMIC,THE ECONOMIC, POLITICAL, LEGAL, SOCIO-POLITICAL, LEGAL, SOCIO- CULTURAL, COMPETITIVECULTURAL, COMPETITIVE AND TECHNOLOGYAND TECHNOLOGY ENVIRONMENTS AREENVIRONMENTS ARE KNOWN, HENCE, ONE CANKNOWN, HENCE, ONE CAN TAKE THE NECESSARYTAKE THE NECESSARY PRECAUTIONSPRECAUTIONS THE ENVIRONMENT ISTHE ENVIRONMENT IS NOT FULLY KNOWN.NOT FULLY KNOWN. INNUMERABLE HIDDENINNUMERABLE HIDDEN FACTORS WHICH MAYFACTORS WHICH MAY EMERGE AT ANY TIMEEMERGE AT ANY TIME TO POSE PROBLEMSTO POSE PROBLEMS 2. PLAN &2. PLAN & STRATEGYSTRATEGY PLANS & STRATEGIES CANPLANS & STRATEGIES CAN BE WORKED OUT FORBE WORKED OUT FOR SHORT TERMS ANDSHORT TERMS AND CARRIED FORWARD TOCARRIED FORWARD TO LONG TERMLONG TERM ONLY LONG TERMONLY LONG TERM PLANNING &PLANNING & STRATEGY WILLSTRATEGY WILL WORK. STRATEGICWORK. STRATEGIC INPUTS ARE REQUIREDINPUTS ARE REQUIRED IN MULTIPLESIN MULTIPLES
  21. 21. DIMENSIONDIMENSION DOMESTICDOMESTIC BUSINESSBUSINESS OPERATIONSOPERATIONS INT. BUSINESSINT. BUSINESS OPERATIONSOPERATIONS 3.3. COMPETITIONCOMPETITION THE MAXIMUM DOMESTICTHE MAXIMUM DOMESTIC COMPETITIVE FORCESCOMPETITIVE FORCES OPERATE AND ONE CANOPERATE AND ONE CAN UNDERSTAND THEIRUNDERSTAND THEIR MOVEMENTMOVEMENT INTERNATIONALINTERNATIONAL COMPETITIVE FORCESCOMPETITIVE FORCES PLAY A VITAL ROLE ANDPLAY A VITAL ROLE AND IT IS VERY DIFFICULT TOIT IS VERY DIFFICULT TO UNDERSTAND THEIRUNDERSTAND THEIR MOTIVE AND MOVEMENTMOTIVE AND MOVEMENT 4. CURRENCY4. CURRENCY LOCAL CURRENCY ISLOCAL CURRENCY IS USED FORUSED FOR TRANSACTIONS. COSTING,TRANSACTIONS. COSTING, PRICING, REVENUE ANDPRICING, REVENUE AND MARGINS ARE COMPUTEDMARGINS ARE COMPUTED IN A SINGLE CURRENCY.IN A SINGLE CURRENCY. VOLATILITY MAY HAVE AVOLATILITY MAY HAVE A MINIMUM IMPACT INMINIMUM IMPACT IN BUSINESS IN SHORT TERMBUSINESS IN SHORT TERM TRANSACTIONS ARETRANSACTIONS ARE CARRIED OUT INCARRIED OUT IN VARIOUS CURRENCIES.VARIOUS CURRENCIES. FLUCTUATIONS INFLUCTUATIONS IN CROSS CURRENCYCROSS CURRENCY MOVEMENT ANDMOVEMENT AND ASSOCIATED RISKS AREASSOCIATED RISKS ARE COMMON. CURRENCYCOMMON. CURRENCY FLUCTUATIONFLUCTUATION INFLUENCES PRICINGINFLUENCES PRICING AND COSTING ANDAND COSTING AND INVESTMENT DECISIONSINVESTMENT DECISIONS
  22. 22. DIMENSIONDIMENSION DOMESTICDOMESTIC BUSINESSBUSINESS OPERATIONSOPERATIONS INT. BUSINESSINT. BUSINESS OPERATIONSOPERATIONS 5. BUSINESS5. BUSINESS RISKSRISKS COMPARATIVELY ONECOMPARATIVELY ONE CAN PREDICT FUTURECAN PREDICT FUTURE RISKS AND SHOCKS ANDRISKS AND SHOCKS AND THEY WILL NOT HAVE ATHEY WILL NOT HAVE A MAJOR IMPACT ON THEMAJOR IMPACT ON THE BUSINESS HOUSESBUSINESS HOUSES VERY DIFFICULT TOVERY DIFFICULT TO PREDICT AND RISKSPREDICT AND RISKS MAY CROP UP AT ANYMAY CROP UP AT ANY TIME, DUE TO THETIME, DUE TO THE POLITICAL SITUATION,POLITICAL SITUATION, THE SOCIETY ITSELFTHE SOCIETY ITSELF OR OTHER UNKNOWNOR OTHER UNKNOWN FACTORSFACTORS 6. RESEARCH6. RESEARCH IT IS REASONABLE ANDIT IS REASONABLE AND EASY TO CONDUCTEASY TO CONDUCT BUSINESS RESEARCH.,BUSINESS RESEARCH., DEMAND ANALYSIS ANDDEMAND ANALYSIS AND CUSTOMER SURVEY. ITCUSTOMER SURVEY. IT IS ALSI RELIABLE FORIS ALSI RELIABLE FOR BUSINESS VENTURESBUSINESS VENTURES VERY EXPENSIVE ANDVERY EXPENSIVE AND DIFFICULT TODIFFICULT TO CONDUCT. RELIABILITYCONDUCT. RELIABILITY CRITERIA DEPENDS ONCRITERIA DEPENDS ON INDIVIDUALINDIVIDUAL COUNTRIES ANDCOUNTRIES AND THERE IS NOTHERE IS NO UNIFORMITY IN THEUNIFORMITY IN THE OUTPUTOUTPUT
  23. 23. DIMENSIONDIMENSION DOMESTICDOMESTIC BUSINESSBUSINESS OPERATIONSOPERATIONS INT. BUSINESSINT. BUSINESS OPERATIONSOPERATIONS 7. HUMAN7. HUMAN RESOURCESRESOURCES DUE TO PAST LAURELSDUE TO PAST LAURELS AND ESTABLISHEDAND ESTABLISHED SYSTEMS, CORPORATESSYSTEMS, CORPORATES CAN SUCCEED EVEN IFCAN SUCCEED EVEN IF THE HUMANTHE HUMAN RESOURCES HAVERESOURCES HAVE MINIMUM SKILLS ANDMINIMUM SKILLS AND KNOWLEDGEKNOWLEDGE MULTILINGUAL, MULTI-MULTILINGUAL, MULTI- STRATEGIC ANDSTRATEGIC AND MULTI-CULTURALMULTI-CULTURAL HUMAN RESOURCE4SHUMAN RESOURCE4S ARE NECESSARY ANDARE NECESSARY AND THEY SHOULD BETHEY SHOULD BE ABLE TO WITHSTANDABLE TO WITHSTAND LARGE RISKSLARGE RISKS 8.8. ORGANISATIONALORGANISATIONAL VISION &VISION & OBJECTIVESOBJECTIVES NARROWED DOWN TONARROWED DOWN TO WORK IN A SINGLEWORK IN A SINGLE COUNTRY WITH ACOUNTRY WITH A STEADY GROWTHSTEADY GROWTH OBJECTIVE. EACH ONEOBJECTIVE. EACH ONE WILL UNDERSTAND THEWILL UNDERSTAND THE VISION AND OBJECTIVEVISION AND OBJECTIVE VERY QUICKLYVERY QUICKLY BROADENED TOBROADENED TO COVER MANYCOVER MANY COUNTRIES ANDCOUNTRIES AND GEOGRAPHIC ANDGEOGRAPHIC AND CULTURAL DIVERSITYCULTURAL DIVERSITY MAY INFLUENCE THEMAY INFLUENCE THE VISION ANDVISION AND OBJECTIVEOBJECTIVE
  24. 24. DIMENSIONDIMENSION DOMESTICDOMESTIC BUSINESSBUSINESS OPERATIONSOPERATIONS INT. BUSINESSINT. BUSINESS OPERATIONSOPERATIONS 9. PRODUCT9. PRODUCT DEVELOPMENTDEVELOPMENT ADAPTED TO THE LOCALADAPTED TO THE LOCAL ENVIRONMENT , AS PERENVIRONMENT , AS PER THE REQUIREMENT OFTHE REQUIREMENT OF DOMESTIC CUSTOMER’sDOMESTIC CUSTOMER’s AFFORDABILITY. BELIEFS,AFFORDABILITY. BELIEFS, VALUES AND CULTURALVALUES AND CULTURAL ELEMENTSELEMENTS VARIES FROMVARIES FROM COUNTRY TOCOUNTRY TO COUNTRY SUBJECTCOUNTRY SUBJECT TO THE REGULATIONSTO THE REGULATIONS OF THE HOSTOF THE HOST COUNTRY. THIS ISCOUNTRY. THIS IS ESPECIALLY TRUEESPECIALLY TRUE FOR CONSUMER ANDFOR CONSUMER AND MEDICINAL ITEMSMEDICINAL ITEMS 10. LEGAL10. LEGAL ASPECTSASPECTS ONLY LOCALONLY LOCAL REGULATIONS ARE FULLYREGULATIONS ARE FULLY APPLICABLE TO CONDUCTAPPLICABLE TO CONDUCT BUSINESS. THERE ISBUSINESS. THERE IS MINIMUM ADHERENCE TOMINIMUM ADHERENCE TO INTERNATIONALINTERNATIONAL REGULATIONS RELATEDREGULATIONS RELATED TO IPR.TO IPR. INTERNATIONALINTERNATIONAL REGULATIONS ANDREGULATIONS AND HOST COUNTRYHOST COUNTRY REGULATIONS AREREGULATIONS ARE APPLICABLE.APPLICABLE. ADVANCEDADVANCED COUNTRIES IMPOSECOUNTRIES IMPOSE STRICT REGULATIONSTRICT REGULATION COMPARED TO LDCs.COMPARED TO LDCs.
  25. 25. DIMENSIONDIMENSION DOMESTICDOMESTIC BUSINESSBUSINESS OPERATIONSOPERATIONS INT. BUSINESSINT. BUSINESS OPERATIONSOPERATIONS 11. INVESTMENT11. INVESTMENT DEPENDING ON THE SIZEDEPENDING ON THE SIZE OF THE BUSINESS ONEOF THE BUSINESS ONE CAN START WITH ACAN START WITH A MINIMUM INVESTMENT.MINIMUM INVESTMENT. INVOLVEMENT OFINVOLVEMENT OF REGULATORY BODIES ISREGULATORY BODIES IS MINIMAL.MINIMAL. ALL OVERSEASALL OVERSEAS OPERATIONS EXCEPTOPERATIONS EXCEPT EXPORTS, CALL FOREXPORTS, CALL FOR HUGE INVESTMENTSHUGE INVESTMENTS TO SET UP ANDTO SET UP AND EXPAND THEEXPAND THE BUSINESS IN MANYBUSINESS IN MANY COUNTRIES. SPECIALCOUNTRIES. SPECIAL REGULATORY BODIESREGULATORY BODIES ARE INVOLVED IN THEARE INVOLVED IN THE PROCESS SINCEPROCESS SINCE FOREIGN CURRENCYFOREIGN CURRENCY IS TRANSACTEDIS TRANSACTED 12. PRICING12. PRICING A MAJORITY OFA MAJORITY OF COMPANIES USE COSTCOMPANIES USE COST PLUS MARGIN PRICINGPLUS MARGIN PRICING OR COMPETITIVEOR COMPETITIVE PRICINGPRICING COMPANIES USECOMPANIES USE MARGINAL COSTMARGINAL COST PRICING OR TRANSFERPRICING OR TRANSFER PRICING ORPRICING OR COMPETITIVE PRICINGCOMPETITIVE PRICING TO SUCCEED..TO SUCCEED..
  26. 26. DIMENSIONDIMENSION DOMESTICDOMESTIC BUSINESSBUSINESS OPERATIONSOPERATIONS INT. BUSINESSINT. BUSINESS OPERATIONSOPERATIONS 13.13. DISTRIBUTIONDISTRIBUTION THE BUSINESS HOUSETHE BUSINESS HOUSE CAN USE ITSCAN USE ITS DISCRETION TO SELECTDISCRETION TO SELECT ANY CHANNEL TOANY CHANNEL TO REACH THE CUSTOMERREACH THE CUSTOMER THE DISTRIBUTIONTHE DISTRIBUTION CHANNEL ISCHANNEL IS GOVERNED BY THEGOVERNED BY THE GOVERNMENT ORGOVERNMENT OR MARKET PRICE. CASHMARKET PRICE. CASH AND CARRY,AND CARRY, SHOPPING MALLS ANDSHOPPING MALLS AND MAIL ORDER SERVICESMAIL ORDER SERVICES ARE BECOMINGARE BECOMING POPULAR INPOPULAR IN INTERNATIONALINTERNATIONAL BUSINESSBUSINESS 14. LOGISTICS14. LOGISTICS DOMESTIC PLAYERSDOMESTIC PLAYERS ARE INVOLVED IN ALLARE INVOLVED IN ALL ACTIVITIESACTIVITIES INTERNATIONALINTERNATIONAL PLAYERS WITHPLAYERS WITH ADVANCEDADVANCED TECHNOLOGY ANDTECHNOLOGY AND SYSTEMS ARESYSTEMS ARE INVOLVEDINVOLVED
  27. 27. DIMENSIONDIMENSION DOMESTICDOMESTIC BUSINESSBUSINESS OPERATIONSOPERATIONS INT. BUSINESSINT. BUSINESS OPERATIONSOPERATIONS 15. PROMOTION15. PROMOTION ADVERTISING,ADVERTISING, PERSONAL SELLINGPERSONAL SELLING AND OTHERAND OTHER PROMOTIONALPROMOTIONAL METHODS ARE NOTMETHODS ARE NOT RESTRICTEDRESTRICTED THROUGH STRICTTHROUGH STRICT LEGAL FRAME WORKLEGAL FRAME WORK DIFFERENTDIFFERENT COUNTRIES HAVECOUNTRIES HAVE DIFFERENTDIFFERENT RESTRICTIONS. FORRESTRICTIONS. FOR EXAMPLE,EXAMPLE, ADVERTISEMENTS FORADVERTISEMENTS FOR LIQUOR ANDLIQUOR AND CIGARETTES ARE NOTCIGARETTES ARE NOT PERMITTED IN SOMEPERMITTED IN SOME COUNTRIES ANDCOUNTRIES AND CAMPAIGNS USINGCAMPAIGNS USING FEMALE MODELS AREFEMALE MODELS ARE BANNED IN OTHERSBANNED IN OTHERS
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