Introduction of IBS ,MNC With advantages and Limitations of Home & Host Country ,FDI

1. PREPARED BY
JISSY.C
ASSISTANT PROFESSOR
DEPARTMENT OF COMMERCE
(INTERNATIONAL BUSINESS)
SREE NARAYANA GURU COLLEGE

2.  International business strategy refers to
plans that guide commercial transactions
taking place between entities in different
countries. It mainly focusing to the plans and
actions of Pvt Companies rather than Govt;as
such the goal in increased profit.

3.  International company structure
 Foreign laws and regulations
 International Accounting
 Cost calculation and global pricing strategy
 Universal Payments methods
 Currency rates
 Choosing the right global shipment methods

4.  Communication difficulties and cultural differences
 Political risks
 Supply chain complexity and risks of labor
exploitation
 World wide environmental issues

5.  A multinational corporation owns and
manages business in two or more
countries.”Point of comment: A multinational
corporation is known by various names such
as Global enterprise, International
enterprises, World enterprises etc.

6.  He Assets and turnover
 International operations through network of
branches
 Unity of control
 Mighty Economic Power
 Advanced sophiscated technology
 Professional management

7.  Aggressive advertising and marketing
 Better Quality of products
Advantages of MNCs of Host country
Employement generation
 Automatic inflow of foreign capital
 Proprer use of idle resources
 Improvement in balance of payment of position
 Technical development

8.  Managerial development
 End of local monopolies
 Improvement of standard of living
 Promotion of international brothrerhood and
culture
 LIMITATIONS OF MNCS OF HOST COUNTRY

9.  Danger for domestic industries
 Repatriation of profits
 No benefits to poor people
 Danger to independence
 Disregard of the national interest of the host
country
 Misuse of mighty status
 Careless exploitation of natural resources

10.  Three Major trading and investment blocs in
the international arena: the US the EU and
Japan
FOREIGN DIRECT INVESTMENT
Equity funds invested in other nations

11.  Purchase of an ongoing company
 Joint venture
 Completely owned enterprises

12.  Increase sales and profits
 Enter rapidly growing markets
 Reduce costs
 Gain of foothold in economic blocs
 Protect domestic markets
 Protect foreign markets
 Acquire technological and Managerial Know-
how