This document summarizes key concepts from Chapter 4 on international business and marketing. It discusses reasons why nations trade, including expanding markets and making more efficient production systems. It also describes how nations measure international trade through balances of trade and payments. Finally, it outlines different levels of involvement for businesses entering global markets, from exporting to direct foreign investment, and strategies for operating internationally.
International Business Dynamics module 2 by Nagarjun ReddyPNagarjunReddyReddy
Complete detail of Second Module International Business Dynamics contents, Globalization – Supporting Institutions in International Conflict Resolution
Environmental influences on pricing decisions are discussed like currency fluctuations, exchange rat clauses, effect of inflation , government policies, competition etc.
Political forces affecting international businessMis bah
Political Forces : Affecting international business
1. Ideological forces
2. Government ownership of business
3. Privatization
4. Government stability
5. Country-Asset risk analysis
International Business Dynamics module 2 by Nagarjun ReddyPNagarjunReddyReddy
Complete detail of Second Module International Business Dynamics contents, Globalization – Supporting Institutions in International Conflict Resolution
Environmental influences on pricing decisions are discussed like currency fluctuations, exchange rat clauses, effect of inflation , government policies, competition etc.
Political forces affecting international businessMis bah
Political Forces : Affecting international business
1. Ideological forces
2. Government ownership of business
3. Privatization
4. Government stability
5. Country-Asset risk analysis
Concept of international business environmentPinki Verma
Presentation on Concept of International Business Environment which includes:
1. Difference between International Business and International Business Environment
2.Difference between Domestic Business and International Business
3.Entry Modes of International Business
4.Nature of International Business
5.Advantages of International Business
6.Classification Of International Business Environment
(a) Micro and Macro Environment
(b) Domestic, Foreign and Global Environment
7.Components Of International Business Environment with examples.
To watch more ppt follow our channel.
International economics deals with the economic relations among nations. The resulting interdependence is very important to the economic well-being of most nations of the world and is on the increase. The economic relations among nations differ from the economic relations among the various part of a nation. This gives rise to different problems, requiring somewhat different tools of analysis, and justifies International Economics as a distinct and separate branch of “Applied” Economics.
International economics deals with
1) The Pure Theory of Trade. This examines the basis for trade and the gains from trade.
2) The Theory of Commercial Policy. This studies the reasons for and the results of obstructions to the free flow of trade.
3) The Balance of Payments. This examines a nation’s total payments to and total receipts from the rest of the world. These involve the exchange of one currency with others.
4) Adjustment in the Balance of Payments. This deals with the mechanism of adjustment to balance of payments disequilibria under different international monetary systems.
11 The Strategy of International BusinessBrent Weeks
To evaluate industry structure, firm strategy, and value creation
To profile the features and functions of the value chain
To assess how managers configure and coordinate a value chain
To explain global integration and local responsiveness
To profile the types of strategies firms use in international business
Foreign trade and its importance in the economy of Iran in the international ...Private
Iran is one of the world’s most closely watched nations as a historical entity, about 2.500 years ago, of the Achaemenids Dynasty (559 to 330 BC) period.
The Islamic Republic of Iran (denomination after the revolution in 1979), also know as Persia territory, as historical entity and despite political, religious, and historic dimensions of the society, Iranians maintain a deep connection to their past.
The Iran’s economy is a mirror of the International Community nowadays. Economic policies and decision-making process in economic terms are guests from the international sanctions, particularly the unilateral sanctions from United States of America, which accuse Iran of supporting international terrorism and maintain the nuclear programme as global weapons.
Kinzer et al. (2005: 61) wrote about the impact of sanctions against countries, he said “this isolation has hampered the short and long term growth of its markets, restricted the country´s access to high technology, and impeded foreign investment”.
A form of foreign pressure, sanctions are typically meant to alter the policies of other countries. There is much pessimism on whether they ever work.
The main question, related with this working paper, and we should do is how Iran can trade in the economic global arena, in the contemporary global markets in the sanctions context? Can we found true economic policies in this context and with the contemporary conservative politicians, with the leadership of Mahmoud Ahmadinejad, since 2005? Can the economic sanctions destabilize the Iran government, the target of the International Community? Understand the political economy, especially the foreign trade and the impact of the international sanctions in the economy of Iran is the purpose of this paper, with special focus on the United States sanctions, in the line of Marinov (2005).
We using the electronic database of The World Factbook published by Central Intelligence Agency (CIA), The Statistical Centre of Iran, World Trade Organization, United Nations and European Union, and a qualitative research based in published academic work until 2003.
Key-words: International community; International sanctions; Impacts; Foreign trade; Iran;
Concept of international business environmentPinki Verma
Presentation on Concept of International Business Environment which includes:
1. Difference between International Business and International Business Environment
2.Difference between Domestic Business and International Business
3.Entry Modes of International Business
4.Nature of International Business
5.Advantages of International Business
6.Classification Of International Business Environment
(a) Micro and Macro Environment
(b) Domestic, Foreign and Global Environment
7.Components Of International Business Environment with examples.
To watch more ppt follow our channel.
International economics deals with the economic relations among nations. The resulting interdependence is very important to the economic well-being of most nations of the world and is on the increase. The economic relations among nations differ from the economic relations among the various part of a nation. This gives rise to different problems, requiring somewhat different tools of analysis, and justifies International Economics as a distinct and separate branch of “Applied” Economics.
International economics deals with
1) The Pure Theory of Trade. This examines the basis for trade and the gains from trade.
2) The Theory of Commercial Policy. This studies the reasons for and the results of obstructions to the free flow of trade.
3) The Balance of Payments. This examines a nation’s total payments to and total receipts from the rest of the world. These involve the exchange of one currency with others.
4) Adjustment in the Balance of Payments. This deals with the mechanism of adjustment to balance of payments disequilibria under different international monetary systems.
11 The Strategy of International BusinessBrent Weeks
To evaluate industry structure, firm strategy, and value creation
To profile the features and functions of the value chain
To assess how managers configure and coordinate a value chain
To explain global integration and local responsiveness
To profile the types of strategies firms use in international business
Foreign trade and its importance in the economy of Iran in the international ...Private
Iran is one of the world’s most closely watched nations as a historical entity, about 2.500 years ago, of the Achaemenids Dynasty (559 to 330 BC) period.
The Islamic Republic of Iran (denomination after the revolution in 1979), also know as Persia territory, as historical entity and despite political, religious, and historic dimensions of the society, Iranians maintain a deep connection to their past.
The Iran’s economy is a mirror of the International Community nowadays. Economic policies and decision-making process in economic terms are guests from the international sanctions, particularly the unilateral sanctions from United States of America, which accuse Iran of supporting international terrorism and maintain the nuclear programme as global weapons.
Kinzer et al. (2005: 61) wrote about the impact of sanctions against countries, he said “this isolation has hampered the short and long term growth of its markets, restricted the country´s access to high technology, and impeded foreign investment”.
A form of foreign pressure, sanctions are typically meant to alter the policies of other countries. There is much pessimism on whether they ever work.
The main question, related with this working paper, and we should do is how Iran can trade in the economic global arena, in the contemporary global markets in the sanctions context? Can we found true economic policies in this context and with the contemporary conservative politicians, with the leadership of Mahmoud Ahmadinejad, since 2005? Can the economic sanctions destabilize the Iran government, the target of the International Community? Understand the political economy, especially the foreign trade and the impact of the international sanctions in the economy of Iran is the purpose of this paper, with special focus on the United States sanctions, in the line of Marinov (2005).
We using the electronic database of The World Factbook published by Central Intelligence Agency (CIA), The Statistical Centre of Iran, World Trade Organization, United Nations and European Union, and a qualitative research based in published academic work until 2003.
Key-words: International community; International sanctions; Impacts; Foreign trade; Iran;
2. Theories of International Trade, Tariff and Non-tariff barriers and Trade ...Charu Rastogi
This presentation starts with an overview of the initial theories of international trade like mercantilism, theory of absolute advantage, theory of comparative advantage and factor proportions theory. It goes on to discuss trade barriers, tariff and non-tariff barriers and trade blocks.
International trade is distorted by countries applying tariff and non tariff trade barriers.
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Group 7
AGUILA, Don George Kinsee M.
DIMACULANGAN, Shella H.
DINGLASAN, Rydg Chrejt V.
MANTUANO, Dannah Francesca B.
OLAN, Elona Mathel B.
PAALA, Kaycee Ericka B.
PROMENTILA, Julie Anne E.
A2D - Macecon
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.
Globalization
The trend toward great interconnectedness of the world’s financial, economic, technological, political, cultural, sociological, ecological, and geographical systems.
Bretton Woods in 1944 where 44 nations attended a conference to stabilize world currencies, and establish credit for international trade.
Paved way for a close-knit global economy and global financial system (World Bank, IMF, and WTO)
Trade Organizations
Trade organizations
Groups established to help with the free flow of goods and services. They may be global in scope or national organizations created by individual governments to help domestic companies expand into international markets.
Trade Organizations
World Trade Organization (WTO)
An international organization established in 1995 (which now has over 150 member countries) that promotes trade liberalization throughout the world.
The main purposes of the WTO are:
To act as a forum for negotiations
To provide a set of rules that have been negotiated and signed by the governments of member countries
To offer a forum for dispute settlement
6
Trade Organizations
The World Bank
An organization with 186 member countries that provides monetary and technical support for developing countries.
Provides loans and grants to assist with education, health, infrastructure, farming, environmental issues, resource management, and other economic concerns.
Helps poor countries move beyond conflict
Provides loans and grants to poor countries with issues
Helps these countries get proper infrastructure
Canada and other countries donate to the WB
Some say many countries suffered because of the rules it makes for taking loans
They take advantage of the countries they loan to, so that when they’re working well, they’ll be advantageous to the countries in the WB
Trade Organizations
International Monetary Fund (IMF)
An organization that tracks economic trends, analyzes countries’ financial performances, warns governments of potential financial problems provides expertise to governments, and provides a forum for discussion
Purpose of IMF:
promote financial stability, prevent and solve economic crises, encourage growth, and assuage poverty.
Encouraging countries to adopt responsible economic policies
Lending money to emerging and developing countries
Providing technical training in areas such as banking regulations and exchange rate policies
Economically
Cross –border movement of goods, services, technology and capital
Process of increasing economic integration
Emergence of global marketplace
Viewed as either positive or negative depending on your paradigm
Current trends leads to developed economies integrating with developed or undeveloped economies
Direct foreign investment, reduction in trade barriers, and immigration
Culturally
Transmission of ideas, meanings, and values around the world to extend and intensify social relations
Tied together with the added process of commod ...
presentation slides on international funds flow prepared by the group members in a new way thanks guys for providing such a beneficial, knowledgeable slides.
Lahore Electric Supply Company (LESCO).pdfQamar Farooq
In the heart of Pakistan, the Lahore Electric Supply Company (LESCO) stands as a beacon of light, providing reliable and efficient electric power services to the city of Lahore and its surrounding regions. Established with a vision to empower lives and uplift communities, LESCO has evolved over the years to become a cornerstone of modern living. This article delves into the detailed history, functions, services, ease of doing business, and customer bill check facilities offered by LESCO.
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
Financial curveballs sent many American families reeling in 2023. Household budgets were squeezed by rising interest rates, surging prices on everyday goods, and a stagnating housing market. Consumers were feeling strapped. That sentiment, however, appears to be waning. The question is, to what extent?
To take the pulse of consumers’ feelings about their financial well-being ahead of a highly anticipated election, ThinkNow conducted a nationally representative quantitative survey. The survey highlights consumers’ hopes and anxieties as we move into 2024. Let's unpack the key findings to gain insights about where we stand.
Core Web Vitals SEO Workshop - improve your performance [pdf]Peter Mead
Core Web Vitals to improve your website performance for better SEO results with CWV.
CWV Topics include:
- Understanding the latest Core Web Vitals including the significance of LCP, INP and CLS + their impact on SEO
- Optimisation techniques from our experts on how to improve your CWV on platforms like WordPress and WP Engine
- The impact of user experience and SEO
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...Valters Lauzums
E-commerce in 2024 is characterized by a dynamic blend of opportunities and significant challenges. Supply chain disruptions and inventory shortages are critical issues, leading to increased shipping delays and rising costs, which impact timely delivery and squeeze profit margins. Efficient logistics management is essential, yet it is often hampered by these external factors. Payment processing, while needing to ensure security and user convenience, grapples with preventing fraud and integrating diverse payment methods, adding another layer of complexity. Furthermore, fulfillment operations require a streamlined approach to handle volume spikes and maintain accuracy in order picking, packing, and shipping, all while meeting customers' heightened expectations for faster delivery times.
Amid these operational challenges, customer data has emerged as an important strategy. By focusing on personalization and enhancing customer experience from historical behavior, businesses can deliver improved website and brand experienced, better product recommendations, optimal promotions, and content to meet individual preferences. Better data analytics can also help in effectively creating marketing campaigns, improving customer retention, and driving product development and inventory management.
Innovative formats such as social commerce and live shopping are beginning to impact the digital commerce landscape, offering new ways to engage with customers and drive sales, and may provide opportunity for brands that have been priced out or seen a downturn with post-pandemic shopping behavior. Social commerce integrates shopping experiences directly into social media platforms, tapping into the massive user bases of these networks to increase reach and engagement. Live shopping, on the other hand, combines entertainment and real-time interaction, providing a dynamic platform for showcasing products and encouraging immediate purchases. These innovations not only enhance customer engagement but also provide valuable data for businesses to refine their strategies and deliver superior shopping experiences.
The e-commerce sector is evolving rapidly, and businesses that effectively manage operational challenges and implement innovative strategies are best positioned for long-term success.
Search Engine Marketing - Competitor and Keyword researchETMARK ACADEMY
Over 2 Trillion searches are made per day in Google search, which means there are more than 2 Trillion visits happening across the websites of the world wide web.
People search various questions, phrases or words. But some words and phrases are searched
more often than others.
For example, the words, ‘running shoes’ are searched more often than ‘best road running
shoes for men’
These words or phrases which people use to search on Google are called Keywords.
Some keywords are searched more often than others. Number of times a keyword is searched
for in a month is called keyword volume.
Some keywords have more relevant results than others. For the phrase “running shoes” we
get more than 80M relevant results, whereas for “best road running shoes for men” we get
only 8.
The former keyword ‘running shoes’ has way more competition from popular websites to
new and small blogs, whereas the latter keyword doesn’t have that much competition. This
search competition for a keyword is called search difficulty of a keyword or keyword
difficulty.
In other words, if the keyword difficulty is ‘low’ or ‘easy’, there won’t be any competition
and if you target such keywords on your site, you can easily rank on the front page of Google.
Some keywords are searched for, just to know or to learn some information about something,
that’s their search intention. For example, “What shoe size should I choose?” or “How to pick
the right shoe size?”
These keywords which are searched just to know about stuff are called informational
keywords. Typically people who are searching this type of keywords are top of a Conversion
funnel.
Conversion funnel is the journey that search visitors go through on their way to an email
subscription or a premium subscription to the services you offer or a purchase of products
you sell or recommend using your referral link.
For some buyers, research is the most important part when they have to buy a product.
Depending on that, their journey either widens or narrows down. These types of buyers are
Researchers and they spend more time with informational keywords.
Conversion is the action you want from your search visitors. Number of conversions that you
get for every 100 search visitors is called Conversion rate.
People who are at different stages of a conversion funnel use different types of keywords.
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
Short video marketing has sweeped the nation and is the fastest way to build an online brand on social media in 2024. In this session you will learn:- What is short video marketing- Which platforms work best for your business- Content strategies that are on brand for your business- How to sell organically without paying for ads.
In this presentation, Danny Leibrandt explains the impact of AI on SEO and what Google has been doing about it. Learn how to take your SEO game to the next level and win over Google with his new strategy anyone can use. Get actionable steps to rank your name, your business, and your clients on Google - the right way.
Key Takeaways:
1. Real content is king
2. Find ways to show EEAT
3. Repurpose across all platforms
Unleash the power of UK SEO with Brand Highlighters! Our guide delves into the unique search landscape of Britain, equipping you with targeted strategies to dominate UK search engine results. Discover local SEO tactics, keyword magic for UK audiences, and mobile optimization secrets. Get your website seen by the right people and propel your brand to the top of UK searches.
To learn more: https://brandhighlighters.co.uk/blog/top-seo-agencies-uk/
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
Videos are more engaging, more memorable, and more popular than any other type of content out there. That’s why it’s estimated that 82% of consumer traffic will come from videos by 2025.
And with videos evolving from landscape to portrait and experts promoting shorter clips, one thing remains constant – our brains LOVE videos.
So is there science behind what makes people absolutely irresistible on camera?
The answer: definitely yes.
In this jam-packed session with Stephanie Garcia, you’ll get your hands on a steal-worthy guide that uncovers the art and science to being irresistible on camera. From body language to words that convert, she’ll show you how to captivate on command so that viewers are excited and ready to take action.
The What, Why & How of 3D and AR in Digital CommercePushON Ltd
Vladimir Mulhem has over 20 years of experience in commercialising cutting edge creative technology across construction, marketing and retail.
Previously the founder and Tech and Innovation Director of Creative Content Works working with the likes of Next, John Lewis and JD Sport, he now helps retailers, brands and agencies solve challenges of applying the emerging technologies 3D, AR, VR and Gen AI to real-world problems.
In this webinar, Vladimir will be covering the following topics:
Applications of 3D and AR in Digital Commerce,
Benefits of 3D and AR,
Tools to create, manage and publish 3D and AR in Digital Commerce.
Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User JourneysSearch Engine Journal
Digital platforms are constantly multiplying, and with that, user engagement is becoming more intricate and fragmented.
So how do you effectively navigate distributing and tailoring your content across these various touchpoints?
Watch this webinar as we dive into the evolving landscape of content strategy tailored for today's fragmented user journeys. Understanding how to deliver your content to your users is more crucial than ever, and we’ll provide actionable tips for navigating these intricate challenges.
You’ll learn:
- How today’s users engage with content across various channels and devices.
- The latest methodologies for identifying and addressing content gaps to keep your content strategy proactive and relevant.
- What digital shelf space is and how your content strategy needs to pivot.
With Wayne Cichanski, we’ll explore innovative strategies to map out and meet the diverse needs of your audience, ensuring every piece of content resonates and connects, regardless of where or how it is consumed.
2. Learning Goals
Explain the importance of international
business and the primary reasons nations
trade and discuss the concepts of
absolute and comparative advantage in
international trade.
Describe how nations measure
international trade and the significance of
exchange rates.
Identify the major barriers that confront
global businesses.
1
Explain how international trade
organizations and economic
communities reduce barriers to
international trade.
Compare the different levels of
involvement used by businesses
when entering global markets.
Distinguish between a global
business strategy and a
multidomestic business strategy.
2
3
4
5
6
3. Introduction
This chapter will discuss the globalization approach of large and small companies.
We will discuss the reasons nations trade, the importance and characteristics of
the global marketplace and the ways nations measure the international trade
We will also examine the barriers to international trade that arise from cultural and
environmental differences.
Finally we will look at the strategies firms implement for entering foreign markets
4. International Business and Marketing
Consider for a moment that how many products you used daily that
come from outside the Pakistan.
Coca-Cola, Pepsi, Fuel for Car, Television sets, computers etc.
Foreign Companies recognize the importance of the International
Trade to their future success
Today, foreign sales are essential as sources of new market and
profit opportunities
Thousand of products cross national boarders every day.
5. Why Nations Trade
As domestic markets mature and sales growth slows,
companies recognize the importance to develop business in
other countries.
Boosts economic growth (by providing a market for its products and
access to needed resources)
Expands markets, (seek growth opportunities in other nations)
Companies can make more efficient production systems
Reduce their dependence on the economies of home nations
Exports: Domestically produced goods and services sold in
markets in other countries.
Imports: Foreign-made products and services purchased by
domestic consumers.
6. International Sources of Factors of
Production
Decisions to operate abroad depend upon availability,
price, and quality of:
– Labor
– Natural resources
– Capital
– Entrepreneurship
Companies doing business overseas must make
strategic decisions.
7. Additional Environmental Factors to
which Companies are Exposed
New social and cultural factors
Economic and political environments
Legal restrictions
Companies can expand their markets, seek growth
opportunities in other nations, make their production
and distribution systems more efficient, and reduce
their dependence on the economies of their home
nations.
8. Size of the International Marketplace
As developing nations expand into the global
marketplace, opportunities grow.
Many developing countries have posted high growth
rates of annual GDP.
United States 4.4%
China 11.1%
India 9.4%
Pakistan 3.6%
The economy of Pakistan is the 27th largest in the world in
terms of purchasing power parity (PPP), and 44th largest in
terms of nominal GDP. However as Pakistan has a population of
over 183 million (the world's 6th-largest), GDP per capita is low
9. Population Size and Prosperity
Though developing nations generally have lower per capita income, many have
strong GDP growth rates and their huge populations can be lucrative markets.
10. The largest U.S. partners with their total trade (sum of imports and exports) in billions of US Dollars for calendar year 2012 are as follows:
Country Exports Imports Total Trade Trade Balance
Canada 292.9 324.2 616.7 -31.8
China 110.6 425.6 536.2 -315
Mexico 216.3 277.7 494 -61.4
Japan 70 146.4 216.4 -76.4
Germany 48.8 108.5 157.3 -59.7
United Kingdom 54.8 54.9 109.8 -0.1
South Korea 42.3 58.9 101.2 -16.6
Brazil 43.7 32.1 75.8 11.6
Saudi Arabia 13.8 55.7 73.8 -37.6
France 30.8 41.6 72.4 -10.8
Taiwan 24.4 38.9 63.2 -14.5
Netherlands 40.7 22.3 63 18.4
India 22.3 40.5 62.9 -18.2
Venezuela 17.6 38.7 56.4 -21.1
Italy 16 36.9 52.9 -20.9
12. Absolute and Comparative
Advantage
Absolute advantage: Country can maintain a
monopoly or produce at a lower cost than any
competitor.
Example: China’s domination of silk production for
centuries.
Comparative advantage: Country can supply a
product more efficiently and at lower cost than it can
supply other goods, compared with other countries.
Example: India’s combination of a highly educated
workforce and low wage scale in software development.
13. Measuring Trade Between Nations
Balance of trade: Difference between a nation’s
imports and exports.
Balance of payments: Overall flow of money into or
out of a country.
Balance of payments surplus = more money into
country than out
Balance of payments deficit = more money out of
country than in
14. Major U.S. Exports and Imports
U.S. demand for imported goods is partly a reflection of the nation’s prosperity and diversity.
U.S. imports more goods than it exports but exports more services than it imports.
15. Exchange Rates
Currency rates are influenced by:
Domestic economic and political conditions
Central bank intervention
Balance-of-payments position
Speculation over future currency values
Values fluctuate, depending on supply and demand.
National governments can deliberately influence
exchange rates.
Business transactions are usually conducted in
currency of the region where they happen.
Rates can quickly create or wipe out competitive
advantage.
17. Social and Cultural Differences
Language: Potential problems include mistranslation,
inappropriate messaging, lack of understanding of
local customs, and differences in taste.
Values and Religious Attitudes: Differing values
about business efficiency, employment levels,
importance of regional differences, and religious
practices, holidays, and values about issues such as
interest-bearing loans.
18. Economic Differences
Infrastructure: Along with other economic measures,
business should consider country’s infrastructure (Basic
systems of communication, transportation, energy
facilities, and financial systems).
Currency Conversion and Shifts: Foreign currency
fluctuations may present problems for global businesses.
Fluctuating values can make pricing in local currencies
difficult and affect decisions about market desirability and
investment opportunities.
19. Political and Legal Differences
Political Climate
Stability is a key consideration.
Legal Environment
Law, International regulations, Country’s law
Climate of corruption. Foreign Corrupt Practices Act prohibits
companies from bribing foreign officials, candidates, or government
representatives. 37 countries have signed the organization for
cooperation and development Anti-Bribery Convention.
International Regulations
Tariffs and taxes charged on imported goods.
A lack of International Regulation enforcement, with piracy. (About
82% of software packages in use in China are pirated, about 71% in
India, and almost 90% in Vietnam, 21% in USA, 34% in Europe)
21. Types of Trade Restrictions
Tariffs - taxes, surcharges, or duties on foreign products.
Revenue Tariffs generate income for the government.
Protective tariffs- to raise the retail prices of imported goods to
match or exceed the prices of similar products of home country or
home country competitor.
Nontariff Barriers - also called administrative trade barriers
Quotas limit the amount of a product that can be imported over a
specified time period.
Dumping is the act of selling a product abroad at a very low price.
An embargo imposes a total ban on importing a specified
product.
Exchange controls through central banks or government
agencies regulate the buying and selling of currency to shape
foreign exchange in accordance with national policy.
22. Reducing Barriers to Trade
The world is moving toward more free trade.
There are many communities and groups that monitor and
promote trade
International Economic Communities reduce trade barriers
and promote regional economic cooperation.
Free-trade area: Members trade freely without tariffs or trade
restrictions.
Customs union: Establishes a uniform tariff structure
Common market: Members bring all trade rules into agreement.
23. Organizations Promoting Trade
General Agreement on Tariffs and Trade
(GATT)
Most industrialized nations found organization in 1947 to
reduce tariffs and relax quotas.
The World Trade Organization succeeded GATT
Representatives from 153 countries
Reduce tariffs and promote trade
World Bank
Funds projects to build and expand infrastructure in
developing countries
International Monetary Fund (IMF)
Operates as lender to troubled nations in an effort to
promote trade
24. International Economic
Communities
North American Free Trade Agreement (NAFTA)
World’s largest free-trade zone: United States, Canada, Mexico.
U.S. and Canada are each other’s biggest trading partners.
Central America-Dominican Republic Free Trade
Agreement (CAFTA)
Free-trade zone among United States, Costa Rica, the Dominican
Republic, El Salvador, Guatemala, Honduras, and Nicaragua.
$33 billion traded annually between U.S. and these countries.
European Union
Best-known example of a common market.
Goals include promoting economic and social progress, introducing
European citizenship as complement to national citizenship, and
giving EU a significant role in international affairs.
SAARC, ASEAN, AU etc
25. Going Global
Determining which
foreign market(s) to
enter
Analyzing the
expenditures required to
enter a new market
Deciding the best way to
organize the overseas
operations
Good starting point for
research: CIA World
Factbook
26. Levels of Involvement
Risk increases with the level of involvement
Many companies employ multiple strategies
Exporting and importing are entry-level strategies
Importing is the process of bringing in goods
produced abroad.
Exporting is the act of selling your goods overseas.
27. Countertrade and Franchising
Countertrade – international transactions that do not
involve currency payments but use bartering.
Franchising – a contractual agreement in which a local
entity gains rights to sell the franchisor’s product in the
foreign market.
A foreign licensing agreement allows a firm to produce
or sell its product.
Subcontracting involves hiring local firms to distribute,
produce, or sell goods and services.
28. Offshoring and Direct Investment
The relocation of business processes to a lower-cost
overseas location is offshoring.
The ultimate level of global involvement is direct investment.
Directly operating production and marketing in foreign
country
Acquisition
Joint ventures
Overseas division
29. Developing a Strategy for
International Business
Global Business (Standardization) Strategies
Firm sells same product in essentially the same manner
throughout the world.
Works well for products with nearly universal appeal.
Multidomestic (Adaptation) Strategies
Firm develops products and marketing strategies that
appeal to customs, tastes, and buying habits of particular
national markets.