International business

We have tried to answer the question:
“Is cultural, political and economic
conditions have an impact on
INTERNATIONAL BUSINESS?”

• 1."Italians don't live to work, but work to live."
• 2. "Purple colour, a sign of bad luck."
• 3. "Wine, a major part of meal."
• 4. "Unstructured family."
• 5. " Ingredients found in their particular region
are preferred by people."
• 6. "First impression is the last impression."

1."Italians don't work to live, but live to work.“
2. "Purple colour, a sign of bad luck.“
3. "Wine, a major part of meal.“
4. "Unstructured family.“
5 "First impression is the last impression."

ERA OF 2007-2010
•Italy was hit hard by the
economic crisis of 2007-2010.
•Loss its European competitors.
•Financial aid was badly required.
•Unemployment level reached its
peak.

IMPACT ON INTERNATIONAL BUSINESS
•No international firm wanted to
invest in the country
•No inflows or outflows of
currency
•No variety of goods for
consumers

ERA OF 2011
•Government adopted certain measures to deal
with the economic crisis of 2007-2010.
•In order to recover deficit Italian government
struggled to limit government spending in order
to take the country to prosperity.
•To increase GDP, encouraged Domestic firms.

ERA OF 2012-2013
"A SUCCESSFUL PERIOD"
•Become 4th largest in EUROPE.
•
•Become 9th largest economy in the WORLD.
•Become 5th largest GDP in terms of
Purchasing parity(PPP).

Government change its policy from
Interventionism to Free-Trade so that all
countries can do freely trade with them.

The Italian state is centralized. The
prefect of each of the provinces is
appointed by and answerable to the Central
Government.

ERA OF SILVIO BERLUSCONI
2006-11
•In 2006, presidential elections were held
and Silvio Berlusconi became the Prime
Minister of Italy and assumed certain powers
and authority.
•Italy's political situation recently gain
widespread attention in the midst of the
sovereign debt crisis.

CONT....
Berlusconi's government increasingly
showed sign of instability, affecting the
confidence of financial markets and
European leaders.

In the period of Silvio Berlusconi, the policy of
interventionism was imposed by the government
so, no international business was being held in
Italy and as a result there was no trading of
Foreign Reserves in the country.

ERA OF MARIO MONTI
(2011- PRESENT)
•After former Prime Minister Silvio Berlusconi
was forced to resign in Nov, 2011, former EU-
Commissioner Mario Monti took the office
with a technocratic government (i.e., due to
the political crisis this government is formed),
backed by board political and popular support
•He set out a broad reform agenda with
a objective to address the country's
trouble public finances and structural
problems of the economy.

At the end of Jan 2012, the government adopted a
series of measures opening up some highly
protected service sectors. Although the measures
will take some years to display their effects, Mr.
Monti's hope was to restore international investor's
confidence by meeting objectives which had long
been pointed out by European union institutions and
several international organizations.

1."Structured family system.“
2. " Black color, a sign of bad luck.“
3. " Time is precious.“
4. " Dressing should be proper.“
5. " Donot take decision in one meeting."

Thailand has made great progress in social and
economic issues. As such, Thailand has been one
of the great development success stories with
sustained strong growth and impressive poverty
reduction.

GLOBAL ECONOMIC CRISIS
•Thailand has faced global economic crisis at
around 5% during 2002-07.
•In 2008, Thailand's economy slightly
boomed, investments were made and economic
conditions were stable.
•But with the start of 2009, Thailand's
economic growth slowed because of global
economic condition.

FLOODS AND RECESSION PERIOD
•In 2011 because of devastating floods the
economy faced a big recession period.

IMPACT OF FLOODS ON INTERNATIONAL
BUSINESS
•Many investors shutdown their businesses.
•Export became low and many financial aids were required .
•WORLD BANK and IMF provided financial aids to Thailand
to recover these losses.
•Life style of people became low.
•Domestic businesses were destroyed.
So, we can say that 2011 was the worst year for
Thailand's economy.

ERA OF 2012
•The Thai economy expanded well in 2012 due
to private domestic demand.
•As the domestic demands increased, the
domestic businesses were encouraged as a
result of which employment level increased,
per capita income increased, inflation rate
decreased as compare to 2011.

•International business managers started investing
their money in Thailand.
•Many international companies licensed and franchised
companies of Thailand.
Example: KFC licensed YUM company for using their
logo and make products of KFC with its "proven
formula" and in return KFC was given royalty by YUM
company.

2013 “A SUCCESSFUL PERIOD FOR THAIAND”
•In 2013, Thailand was highly ranked in International
practices.
•UNCTAD listed Thailand as the 10th most
attractive destination of foreign direct investment.
•Thailand allowed free-trade to international
countries with no restrictions on foreign currency,
no export requirement, no local content
requirements in manufacturing and 100% foreign
ownership.
•Thailand offered many incentive schemes to
international businesses such as no-tax incentives,
permission to own land etc.

In short, 2013 was the successful period for
Thailand as it enjoyed many international
businesses, economy was boomed, economies
of scale was achieved, competitive
advantage was earned and people's life style
improved due to international business.
CONCLUDING POINTS

ERA OF THAKSIN SHINAWATRA(THAI PARTY)
•Prime Minister Thaksin Shinawatra was over thrown in a
military coup in September 2006. While he was out of the
country his Thai Rack, Thai party was banned but in
December 2007 the party was re-entered in the elections,
the People Power Party won the most votes in general
election 2007.
•Thaksin was charged with corruption in August 2008, and
fled the country for London. Later he was sentenced to
two years in jail in his absence. Year 2008 saw three prime
ministers bore protest.
.

•In 2010, the pro-Thaksin Pheu Thai party
won a landslide victory in elections the
following year and Thaksin's sister, Yingluck
became Prime Minister.
CONT…

•The government of Yingluck Thaksin allowed
free trade to international business.
•Many international organizations expanded
their business in Thailand

EMERGENCY LAW WAS IMPOSED
(2013)
•Due to bad political conditions in
2013,emergency law was imposed by the
government for their safety.
•Due to political instability social unrest
situation occurred in Thailand with protest
against whoever has been in power

1. "Corn flour, the main ingredient.“
2. " Mangoes and pineapple lovers.“
3. "Not overly concerned with being
punctual.“
4."Dress is highly valued."

•The economy of Uganda has great
potential, and it appeared poised for rapid
economic growth and development .
•Uganda is doing well in the fight against
poverty
•The country has already achieved the
millennium development goal target of
having the incident of extreme poverty.

ERA OF 2008
In 2008, the Uganda’s economy was hit
hard by the global economic turndown,
given its continuing dependence on coffee
exports and pushed up food prices.

ERA OF 2009
•In 2009, the economy of Uganda slightly
started to grow as average rate of people
living in poverty declined to 24.5%
•The effect of this decline be ascribed to the
energy crisis, the increasing oil prices,
infrastructural bottleneck disappointing
harvest due to draught and to difficulties in
the European and US economics which secure
as important market for Uganda’s exports.

ERA OF 2012
In the financial year 2012, Uganda’s economy
again slowdown. The inflation rate rose up to
23.5% and it was the highest inflation rate
till date. The initial drivers of the inflation
were high food and fuel prices.

ERA OF 2013
•In 2013, the government has taken
important steps towards economic
rehabilitation. The country’s infrastructure
notably its transport and communication
systems which were destroyed by war and
neglected were being rebuilt.
R
•Recognizing the need for increased
external support, Uganda negotiate a
policy framework paper with IMF and the
World bank in 2013.

Uganda is a strong supporter in the
global war against terrorism. Since
1986, Uganda has made progress in
restoring peace security and the rule
of law.

ERA OF 1970s
•In 1970, the relations between Uganda
and U.S were strained. After 9 years in
1979, relations improved between U.S and
Uganda, the U.S reopened its embassy in
Kampala.

ERA OF YOWERI MUSEVENI
(MULTI PARTY)
•The relations between U.S and Uganda became
good as Museveni assumed power and the U.S
welcomed his efforts to end human rights abuses
and to peruse economic reform. Mr. Museveni
introduced a "Democratic System" in Uganda in
1998.
•The global economic
turndown of 2008, hit Uganda
hard. This galvanized the
position which disputed Mr.
Museveni's victory in 2011
presidential election and went
to, to organize street protest
about the cost of living and
political freedoms.

ERA OF MULTI PARTY POLITICS
•Following a referendum in 2005, the same work for
multi-party politics was re-introduced after 20
years of the movement system (MS). The 2006
presidential and parliamentary elections marked the
beginning of the return to the multi-party system.
After a long time,2006 election create a peaceful
environment in Uganda. The government permitted
the media to exercise its functions without undue
its restrictions.

RELATIONS WITH INTERNATIONAL
COUNTRIES
Relations with Rwanda, Congo and
Sudan have sometimes being strained
because of security concerns. In the
government of Museveni international
trade was encouraged and many
countries like U.S, Sudan, Somalia etc
started doing international business
with Uganda. U.S is helping Uganda in
exporting of many products. Uganda is
a big exporter of coffee and is
exporting coffee to U.S. U.S is also
providing financial aid to Uganda for
poverty reduction

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