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International business






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International business Presentation Transcript

  • 1. INTERNATIONALBUSINESS International business consists of all commercial transactions between two or more countries. Today global events and competition affect almost all companies large and small because most sell output to and secure supplies from foreign countries. Many companies also compete against products and services that come from abroad Thus most managers, regardless of industry or company size, need to approach their operating strategies from an international standpoint.
  • 2. It refers to the integration of world economies through the reduction of barriers to the movement of trade, capital, technology and people
  • 3. Forces driving globalisation Increase in and expansion of technology Liberalisation of cross border trade and resource movement. Development of services that support international business Growing consumer pressures Increased global competition Changing political situations Expanded cross national cooperation.
  • 4. Arguments against globalization Threats to national sovereignty Economic growth and environmental stress Growing income inequality
  • 5. Threats to national sovereignty Harm to the local objectives and policies Local overdependence Threat to cultural homogeneity
  • 6. Economic growth and environmentalstress As globalization brings in growth, it consumes more non renewable resources and increases environ mental damage. Water pollution through toxic and pesticide runoffs into rivers and oceans Air pollution from factory and vehicle emissions Deforestation
  • 7. Growing income inequality GDP rising but the benefits do not percolate to level of the ordinary masses.
  • 8. Why international business To create value for their organisation Expanding sales Acquiring resources Minimising risk
  • 9. Modes of operation ininternational business Merchandise exports and imports Service exports and imports Investments
  • 10. Merchandise exports and imports Merchandise exports are tangible products that are sent out of a country Merchandise imports are goods bought in a country Because we can actually see these goods as they leave and enter the country, we sometimes call them visible exports and imports.
  • 11. Service exports and imports When we refer to non product international earnings we use the term service exports and imports. The company or individual that provides the service and receives payments makes a service export. The company or individual that receives the service and pays for it makes a service import. It can be of three forms :- Tourism and transportation, Service performance , Asset use.
  • 12. Investments Foreign investment means ownership of foreign property in exchange for a financial return such as interest and dividends. It can be of two forms :- Direct investment & Portfolio investments.
  • 13. How international business differsfrom domestic business Physical and social factors• Geographic influences• Political policies• Legal policies• Behavioral factors• Economic forces
  • 14.  The competitive environment• Competitive strategy for products• Company resource and experience• Competitors faced in each market