POLITICAL ENVIRONMENT
TECHNOLOGICAL ENVIRONMENT
INTERNATIONAL BUSINESS
DEFINATION <ul><li>International business consists of transactions that are devised and carried out across national border...
Need for International Business <ul><ul><li>causes the flow of ideas, services, and capital across the world </li></ul></u...
Political Environment <ul><li>Change in government policies </li></ul><ul><ul><li>MNCs must adjust their strategies and pr...
China <ul><li>Emerging economic power </li></ul><ul><li>Government’s desire to balance </li></ul><ul><ul><li>National, imm...
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International Business

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International Business

  1. 1. POLITICAL ENVIRONMENT
  2. 2. TECHNOLOGICAL ENVIRONMENT
  3. 3. INTERNATIONAL BUSINESS
  4. 4. DEFINATION <ul><li>International business consists of transactions that are devised and carried out across national borders to satisfy the objectives of individuals, companies, and organizations. </li></ul>
  5. 5. Need for International Business <ul><ul><li>causes the flow of ideas, services, and capital across the world </li></ul></ul><ul><ul><li>offers consumers new choices </li></ul></ul><ul><ul><li>permits the acquisition of a wider variety of products </li></ul></ul><ul><ul><li>facilitates the mobility of labor, capital, and technology </li></ul></ul><ul><ul><li>provides challenging employment opportunities </li></ul></ul><ul><ul><li>reallocates resources, makes preferential choices, and shifts activities to a global level </li></ul></ul>
  6. 6. Political Environment <ul><li>Change in government policies </li></ul><ul><ul><li>MNCs must adjust their strategies and practices to accommodate the new perspectives and actual requirements </li></ul></ul><ul><li>Less stable governments </li></ul><ul><ul><li>Greater risk </li></ul></ul><ul><li>Significant differences among political systems across countries and regions </li></ul>
  7. 7. China <ul><li>Emerging economic power </li></ul><ul><li>Government’s desire to balance </li></ul><ul><ul><li>National, immediate needs </li></ul></ul><ul><ul><li>Challenge of a free market economy and globalization </li></ul></ul><ul><li>Government attempting to open up the economy </li></ul><ul><ul><li>Speed up conversion of state enterprises into corporations </li></ul></ul><ul><ul><li>Expand capital markets by authorizing new stock listings </li></ul></ul><ul><ul><li>Sell off most of the 305,000 state enterprises (or let go bankrupt) </li></ul></ul><ul><ul><li>Worker retraining, low-cost housing and other programs </li></ul></ul><ul><ul><li>Reduce tariffs to 10 percent </li></ul></ul>
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