This document outlines key concepts in international business including definitions, reasons for growth, and influences. It discusses how international business differs from domestic business through exchange of goods and services between countries. It also describes factors driving more companies to engage globally like expanding markets and accessing new resources. The document introduces modes of entry into foreign markets and external influences on international operations from physical, social, competitive and economic factors that companies must consider.
Introduction, DEFINITION OF INTERNATIONAL BUSINESS, Important, Why Companies Engage in International Business, Scope of International Business, Modes of entry into International Business, SPECIAL DIFFICULTIES IN INTERNATIONAL BUSINESS, BENEFITS OF INTERNATIONAL BUSINESS and Internationalization process and managerial implications.
international business introduction meaning, stages of international business,factors influencing international business, deference between domestic and international business benifts
> To define globalization and international business and show how they affect each other
> To understand why companies engage in international business and why international business growth has accelerated
> To discuss globalization’s future and the major criticisms of globalization
> To become familiar with different ways in which a company can accomplish its global objectives
> To apply social science disciplines to understanding the differences between international and domestic business
> To define globalization and international business and show how they affect each other
01 Globalization and International BusinessBrent Weeks
To define globalization and international business and show how they affect each other
To understand why companies engage in international business and why international business growth has accelerated
To discuss globalization’s future and the major criticisms of globalization
To become familiar with different ways in which a company can accomplish its global objectives
To apply social science disciplines to understanding the differences between international and domestic business
Introduction, DEFINITION OF INTERNATIONAL BUSINESS, Important, Why Companies Engage in International Business, Scope of International Business, Modes of entry into International Business, SPECIAL DIFFICULTIES IN INTERNATIONAL BUSINESS, BENEFITS OF INTERNATIONAL BUSINESS and Internationalization process and managerial implications.
international business introduction meaning, stages of international business,factors influencing international business, deference between domestic and international business benifts
> To define globalization and international business and show how they affect each other
> To understand why companies engage in international business and why international business growth has accelerated
> To discuss globalization’s future and the major criticisms of globalization
> To become familiar with different ways in which a company can accomplish its global objectives
> To apply social science disciplines to understanding the differences between international and domestic business
> To define globalization and international business and show how they affect each other
01 Globalization and International BusinessBrent Weeks
To define globalization and international business and show how they affect each other
To understand why companies engage in international business and why international business growth has accelerated
To discuss globalization’s future and the major criticisms of globalization
To become familiar with different ways in which a company can accomplish its global objectives
To apply social science disciplines to understanding the differences between international and domestic business
Introduction to International BusinessAshwin Kumar
Introduction to International Business is a comprehensive study of the various aspects of International Business. This presentation will provide better insights into the definition, nature, scope, characteristics, approaches, reasons, advantages and disadvantages.
Thinking of a career in international business? See if you and an international job environment are a good fit. Fuel the growth and success of multinational corporations with a career in international business. You’ll find many exciting opportunities for work at home and abroad. An increasing number of businesses now conduct business globally. In international business you’ll engage with global and cultural business issues as an import/export agent, translator, foreign currency investment advisor, foreign sales representative, international management consultant and more. If you’re in interested in learning where international business can take you, learn which personal and professional traits you’ll need to succeed.
Charles Hills defines globalization as "The shift towards a more integrated and interdependent world economy". Globalization has two main components - the globalization of markets and the globalization of production.
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Validity & Reliability of Research
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IBM CHAPTER NO:01
1.
2. Learning Objectives
To define international business (IB) and describe how it differs from
domestic business
Globalization
Multinational Enterprises
International Management
To explain why companies engage in IB and why its growth has
accelerated
To introduce different modes a company can use to accomplish its
global objectives
To illustrate the role social science disciplines play in understanding
the environment of IB
To provide an overview of the primary patterns for companies’
international expansion
To describe the major countervailing forces that affect
BY:MADDY.KALEEM
3. Understanding the Term International Business
International business comprises all commercial
transactions (private and governmental, sales,
investments, logistics, and transportation) that take place
between two or more regions, countries and nations
beyond their political boundaries.
BY:MADDY.KALEEM
4. 1.The exchange of goods and
services among individuals and businesses in
multiple countries
2.A specific entity, such as a multinational
corporation or international business company that
engages in business among multiple countries
BY:MADDY.KALEEM
6. Globalization
The process by which businesses or other
organizations develop international influence or start
operating on an international scale.
BY:MADDY.KALEEM
7. Multinational Enterprises
A MNE has a worldwide approach to
foreign markets and production and
an integrated global philosophy
encompassing both domestic and
international markets.
BY:MADDY.KALEEM
8. International Management
Defined as a process of accomplishing the
global objectives of a firm by (1) effectively
coordinating the procurement, allocation, and
utilization of the human, financial, intellectual, and
physical resources of the firm within and across
national boundaries and (2) effectively charting the
path toward the desired organizational goals by
navigating the firm through a global environment that
is not only dynamic but often very hostile to the firm’s
very survival.
BY:MADDY.KALEEM
9. Why Companies Engage in IB
Expand sales—greater purchasing power in the world
as a whole
Acquire resources—products, services, components
• also, foreign capital, technologies, information
Diversify sources of sales and supplies—takes
advantage of business cycle differences among
countries
Minimize competitive risk—prevent competitor from gaining
advantages
BY:MADDY.KALEEM
11. Modes
• Importing and exporting
• Tourism and transportation
• Licensing and franchising
• Turnkey operations
• Management contracts
• Direct and portfolio
investment
COMPETITIVE ENVIRONMENT
• Major advantage in price,
marketing, innovation, or
other factors
• Number and comparative
capabilities of competitors
• Competitive differences
by country
BY:MADDY.KALEEM
12. EXTERNAL INFLUENCES
PHYSICAL AND SOCIETAL FACTORS
• Political policies and
legal practices
• Cultural factors
• Economic forces
• Geographical influences
BY:MADDY.KALEEM
13. Reasons for Growth of IB
Expansion of technology—transportation and communication are
quicker and less costly
Liberalization of cross-border movements
• Government barriers reduced because:
– desire for better access to greater variety of goods and
services
– domestic producers forced to be more competitive
– lowered trade barriers to their own exports
Development of supporting services by business and governments
to:
• Ease the flow of goods and services sold abroad
• Reduce risks of IB
Increase in global competition—firms have become more global to
maintain competitiveness
BY:MADDY.KALEEM
14. External Influences on IB
Physical and societal factors—must understand
• Politics that affect whether and how IB occurs
• Domestic and international law determines what managers can do in
IB
• Economics
• Geography—determine location and availability of world’s resources
Competitive environment
• Varies by industry, company, and country
– strategies differ across companies
» e.g., importance of controlling labor costs
» e.g., influence of local and international competitors
– size of market differs across countries
BY:MADDY.KALEEM
15. Evolution of Strategy in International Process
Risk minimization—foreign operations viewed as risky
international commitments evolve gradually
Patterns of expansion
• Passive to active pursuit of IB opportunities
– initially wait for foreign opportunity
• External to internal handling of IB
– rely on intermediaries at first
• Limited to extensive modes of operations
– begin with importing or exporting operation
• Few to many foreign locations
• Similar to dissimilar business environments
Leapfrogging of expansion—new companies begin with international
focus
• Possible because of founder’s experience and technological
advances that help define foreign markets
BY:MADDY.KALEEM