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Need for International Business
2
 Flow of ideas, services, and capital.
 New choices
 M&A
 Mobility of labor, capital and technology
 Employment opportunities
Types of International Business
3
Export-import trade
Foreign direct
investment
Licensing
Franchising
Management contracts
The Smoot-Hawley Act
 The the 1930’s, the U.S. passed the Smoot-
Hawley Act, which raised import duties to
reduce the volume of goods coming into the
U.S.
 The act was passed in the hope that it would
restore domestic employment.
 The result was a worldwide depression and the
collapse of the world financial system.
4
The Current U.S. International
Trade Position
5
Exports and Imports of Goods and Services per Capita
for Selected Countries
Country Exports per Capita Imports per Capita
Australia
Brazil
China
Japan
Kenya
United Kingdom
United States
$4,296
379
222
4,165
91
4,767
3,472
$4,525
428
199
3,622
125
5,500
4,962
Emerging market and international
business
 BRICS
 Mena and Latin America
 FDI
Why Companies Engage
in International Business
 To expand sales
 Acquire resources
 Minimize risk
 To increase profit
International businesses and
resistance to their activities
 G-local phenomenon
 Rules and procedures in all countries
 National Sovereignty vs. Supranational Corporations
International Business: The
Resource Wars
 Finite resources and infinite consumption
 Economic development
 Changing living of standards
 Wining race between developed and developing
countries
 Sustain consumption.
Risks Faced by International
Businesses in Developing Countries
 Political instability
 Economic risk
 Societal risk
Benefits of Foreign Investment to
Target Countries
 Import and export
 Generating jobs
 Technology and knowledge transfer
 foreign currency
 Foreign investment is more stable than fund inflow
The Role of Governments in
Encouraging International Businesses
 To bring expertise and develop particular sector
 Allowing FDI
 Admission into WTO
 Australia -Woolworths
 Hong Kong -Mass Transit Railway (MTR)
 India -Infosys Technologies
 Indonesia -Astra International
 Japan -Toyota Motor
 Malaysia -Genting
 Philippines -Jollibee Foods
 Singapore -Singapore Airlines
 South Korea -Samsung Electronics
 Taiwan -Taiwan Semiconductor Manufacturing
 Thailand -Charoen Pokphand Group (CP)
ACNielsen International Research
(Hong Kong)
1. Infosys Technologies
2. Reliance Industries
3. Wipro
4. Hero Honda Motors
5. Dr. Reddy's Laboratories
6. Larsen & Toubro
7. Ranbaxy Laboratories
8. ITC
9. Cipla
10. ICICI
India Top 10 Companies ranked for
Overall Leadership are:
Name Roll No.
Rohit Jadhav 16
Vaibhav Jangale 18
Prachi Jogle
Nilesh Sargam
Sandip Yadav 48
International business

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International business

  • 1.
  • 2. Need for International Business 2  Flow of ideas, services, and capital.  New choices  M&A  Mobility of labor, capital and technology  Employment opportunities
  • 3. Types of International Business 3 Export-import trade Foreign direct investment Licensing Franchising Management contracts
  • 4. The Smoot-Hawley Act  The the 1930’s, the U.S. passed the Smoot- Hawley Act, which raised import duties to reduce the volume of goods coming into the U.S.  The act was passed in the hope that it would restore domestic employment.  The result was a worldwide depression and the collapse of the world financial system. 4
  • 5. The Current U.S. International Trade Position 5 Exports and Imports of Goods and Services per Capita for Selected Countries Country Exports per Capita Imports per Capita Australia Brazil China Japan Kenya United Kingdom United States $4,296 379 222 4,165 91 4,767 3,472 $4,525 428 199 3,622 125 5,500 4,962
  • 6. Emerging market and international business  BRICS  Mena and Latin America  FDI
  • 7. Why Companies Engage in International Business  To expand sales  Acquire resources  Minimize risk  To increase profit
  • 8. International businesses and resistance to their activities  G-local phenomenon  Rules and procedures in all countries  National Sovereignty vs. Supranational Corporations
  • 9. International Business: The Resource Wars  Finite resources and infinite consumption  Economic development  Changing living of standards  Wining race between developed and developing countries  Sustain consumption.
  • 10. Risks Faced by International Businesses in Developing Countries  Political instability  Economic risk  Societal risk
  • 11. Benefits of Foreign Investment to Target Countries  Import and export  Generating jobs  Technology and knowledge transfer  foreign currency  Foreign investment is more stable than fund inflow
  • 12. The Role of Governments in Encouraging International Businesses  To bring expertise and develop particular sector  Allowing FDI  Admission into WTO
  • 13.  Australia -Woolworths  Hong Kong -Mass Transit Railway (MTR)  India -Infosys Technologies  Indonesia -Astra International  Japan -Toyota Motor  Malaysia -Genting  Philippines -Jollibee Foods  Singapore -Singapore Airlines  South Korea -Samsung Electronics  Taiwan -Taiwan Semiconductor Manufacturing  Thailand -Charoen Pokphand Group (CP) ACNielsen International Research (Hong Kong)
  • 14. 1. Infosys Technologies 2. Reliance Industries 3. Wipro 4. Hero Honda Motors 5. Dr. Reddy's Laboratories 6. Larsen & Toubro 7. Ranbaxy Laboratories 8. ITC 9. Cipla 10. ICICI India Top 10 Companies ranked for Overall Leadership are:
  • 15. Name Roll No. Rohit Jadhav 16 Vaibhav Jangale 18 Prachi Jogle Nilesh Sargam Sandip Yadav 48