This document provides an overview of international trade barriers and the dynamic global environment. It discusses different types of trade barriers countries employ like tariffs, quotas, embargoes and standards. While trade barriers aim to protect domestic industries and jobs, they can also decrease total world output and limit variety. The document also outlines benefits of free trade like increased specialization and access to larger markets, though free trade may negatively impact some domestic producers and jobs. Overall, it presents perspectives on both free trade and barriers to international trade.
> 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
This document discusses globalization and international business. It defines globalization as the interdependence of countries through reduced trade barriers and increased flow of trade, capital, technology and people between nations. The key drivers of globalization are described as economic, technological, personal contact and political factors. International business is defined as the exchange of goods and services between individuals and businesses across multiple countries. The document outlines factors that have increased globalization and discusses how companies operate internationally through methods like exports, imports and foreign direct investments. It also examines some challenges of globalization and factors that influence international business operations.
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
Governments intervene in international trade for both political and economic reasons. Politically, they aim to protect domestic industries and jobs from foreign competition. Economically, they argue for strategies like protecting infant industries. Governments use various tools for intervention, such as tariffs, subsidies, quotas, and anti-dumping policies. These can benefit domestic producers but hurt consumers and overall economic efficiency. The World Trade Organization was created to liberalize trade and enforce global trade rules, but negotiations continue on further reducing barriers to trade.
The document discusses several theories of international trade:
1. Mercantilism held that a nation's wealth depended on accumulating gold and silver through trade surpluses. It advocated subsidies for exports and tariffs/quotas on imports.
2. Adam Smith's absolute advantage theory argued that countries should specialize in goods they produce most efficiently and trade for other goods. Both countries can benefit through specialization and trade.
3. David Ricardo's comparative advantage theory extended this, showing that trade can benefit both sides even if one country is more efficient overall. Countries should import goods they have a comparative - not absolute - disadvantage in.
4. Later theories examined factors like differences in factor endowments
egional economic integration
,
levels of economic integration
,
free trade area b) customs union c) common marke
,
the political case for regional integration
,
the economic case for regional integration
,
mercosur
,
regional economic integration in europe
,
evolution of the european union
,
impediments to integration
,
the case against regional integration
,
the andean community
,
classroom performance system
,
the north american free trade agreement
,
asia-pacific economic cooperation
,
regional economic integration elsewhere
,
regional trade blocs in africa
,
political structure of the european union
,
enlargement of the european union
,
the single european act
,
the establishment of the euro
,
central american common market and caricom
GLOBALIZATION CHAPTER 1 INTERNATIONAL BUSSINES BBA 5TH UOGRashid Gorsi
This document provides an overview of globalization and international business. It discusses the benefits of international business such as increased profits and employment opportunities. However, it also notes hurdles such as differing laws and regulations between countries. Globalization is defined as the interdependence and interrelation of the world economy. Key factors driving globalization include the fall of trade barriers, advances in telecommunications and transportation technologies, and the rise of the internet. Several global institutions that promote globalization are also discussed, including the WTO, IMF, World Bank, and UN.
This document provides an overview of international marketing. It defines international marketing as identifying goods and services customers outside the home country want and providing them at the right price and place. Benefits include survival, overseas market growth, sales/profits, and diversification. Factors influencing internationalization include domestic market saturation, trade deficits, foreign competition, and new market opportunities. Market segmentation allows adjusting the marketing mix to meet different market segments based on demographics, geography, culture, and psychology. Companies must decide whether to standardize or adapt their marketing mix across countries. Major international marketing activities include market assessment, entry method selection, and developing an international marketing mix for product, place, promotion, and price.
> 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
This document discusses globalization and international business. It defines globalization as the interdependence of countries through reduced trade barriers and increased flow of trade, capital, technology and people between nations. The key drivers of globalization are described as economic, technological, personal contact and political factors. International business is defined as the exchange of goods and services between individuals and businesses across multiple countries. The document outlines factors that have increased globalization and discusses how companies operate internationally through methods like exports, imports and foreign direct investments. It also examines some challenges of globalization and factors that influence international business operations.
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
Governments intervene in international trade for both political and economic reasons. Politically, they aim to protect domestic industries and jobs from foreign competition. Economically, they argue for strategies like protecting infant industries. Governments use various tools for intervention, such as tariffs, subsidies, quotas, and anti-dumping policies. These can benefit domestic producers but hurt consumers and overall economic efficiency. The World Trade Organization was created to liberalize trade and enforce global trade rules, but negotiations continue on further reducing barriers to trade.
The document discusses several theories of international trade:
1. Mercantilism held that a nation's wealth depended on accumulating gold and silver through trade surpluses. It advocated subsidies for exports and tariffs/quotas on imports.
2. Adam Smith's absolute advantage theory argued that countries should specialize in goods they produce most efficiently and trade for other goods. Both countries can benefit through specialization and trade.
3. David Ricardo's comparative advantage theory extended this, showing that trade can benefit both sides even if one country is more efficient overall. Countries should import goods they have a comparative - not absolute - disadvantage in.
4. Later theories examined factors like differences in factor endowments
egional economic integration
,
levels of economic integration
,
free trade area b) customs union c) common marke
,
the political case for regional integration
,
the economic case for regional integration
,
mercosur
,
regional economic integration in europe
,
evolution of the european union
,
impediments to integration
,
the case against regional integration
,
the andean community
,
classroom performance system
,
the north american free trade agreement
,
asia-pacific economic cooperation
,
regional economic integration elsewhere
,
regional trade blocs in africa
,
political structure of the european union
,
enlargement of the european union
,
the single european act
,
the establishment of the euro
,
central american common market and caricom
GLOBALIZATION CHAPTER 1 INTERNATIONAL BUSSINES BBA 5TH UOGRashid Gorsi
This document provides an overview of globalization and international business. It discusses the benefits of international business such as increased profits and employment opportunities. However, it also notes hurdles such as differing laws and regulations between countries. Globalization is defined as the interdependence and interrelation of the world economy. Key factors driving globalization include the fall of trade barriers, advances in telecommunications and transportation technologies, and the rise of the internet. Several global institutions that promote globalization are also discussed, including the WTO, IMF, World Bank, and UN.
This document provides an overview of international marketing. It defines international marketing as identifying goods and services customers outside the home country want and providing them at the right price and place. Benefits include survival, overseas market growth, sales/profits, and diversification. Factors influencing internationalization include domestic market saturation, trade deficits, foreign competition, and new market opportunities. Market segmentation allows adjusting the marketing mix to meet different market segments based on demographics, geography, culture, and psychology. Companies must decide whether to standardize or adapt their marketing mix across countries. Major international marketing activities include market assessment, entry method selection, and developing an international marketing mix for product, place, promotion, and price.
Regional economic integration refers to agreements among countries in a geographic region to reduce and ultimately remove trade barriers. Different levels of integration exist, from free trade areas with no barriers to goods and services, to customs unions with common external trade policies, to economic and monetary unions with synchronized fiscal and monetary policies and a shared currency. While integration increases economic growth and political cooperation, it also risks loss of sovereignty and job losses as domestic industries become uncompetitive. The formation of the European Union sought to foster lasting peace and economic power in Europe following two world wars.
The document discusses globalization and multinational corporations. It describes how globalization is driven by market, cost, government, and competitive factors. It also outlines the size and growth of multinational corporations, their diversity in terms of business models, locations, and organizational structures. The benefits and challenges of multinational investment for both host countries and corporations are presented.
The document discusses strategy in international business. It covers topics like the role of strategy, industry structure and the five forces model, value creation through cost leadership and differentiation, global integration versus local responsiveness pressures, and the integration-responsiveness grid for measuring these pressures. The value chain and how it is configured and coordinated in response to changes is also addressed. Different types of strategies are outlined, and future visions for strategies with concepts like metanational and cybercorp companies.
Modes of entry to international businessHarsh Bansal
The document discusses different modes of entry into international business, including exporting, licensing, franchising, contract manufacturing, management contracts, foreign direct investment (FDI) without alliances, and FDI with alliances. It provides details on the key characteristics, advantages, and disadvantages of each mode. Exporting allows gradual market entry at relatively low financial risk but with logistical complexities. Licensing and franchising provide low-cost ways to assess markets but have dependence on partners. FDI through greenfield investment gives full control but requires high expenses. Strategic alliances through mergers, acquisitions, and joint ventures combine strengths but also carry shared ownership risks.
This document discusses various modes of international trade that companies can use to enter foreign markets. It describes exporting, franchising, licensing, joint ventures, countertrade, turnkey contracts, contract manufacturing, mergers and acquisitions, and third country locations. For each mode, it provides details on what they are, examples, and potential advantages and disadvantages from the perspective of the company. The key modes covered are exporting, franchising, licensing, joint ventures, and mergers and acquisitions.
International Business Management unit 1 introductionGanesha Pandian
This document provides an overview of international business management. It defines international business as transactions across national borders that satisfy objectives of individuals, companies, and organizations. It then discusses reasons for internationalization like increased opportunities, risks, and profits. Key factors driving globalization include developing markets, low-cost production, trade blocks, and declining barriers. The document also examines country attractiveness analysis, political and legal environments, risks in international business, and classifications of those risks. It provides examples of political systems and outlines strategies for managing political risks.
This document discusses different modes that companies can use to enter international business, including exporting, licensing, franchising, foreign direct investment, and strategic alliances. It describes the key features and differences between indirect exporting, direct exporting, intra-corporate transfers, licensing, franchising, contract manufacturing, management contracts, turnkey projects, greenfield investment, mergers and acquisitions, and joint ventures. It also provides the advantages and disadvantages of each entry mode.
The document discusses the political environment factors that businesses must consider when expanding overseas. It provides details on Hong Kong's political system and environment. Hong Kong has a relatively stable political system due to its "one country, two systems" agreement with China that guarantees its capitalist system and limited democracy until 2047. The political factors discussed that influence business include the type of political system, stability, policies on taxation, intellectual property, and product safety laws.
Walmart began its global expansion in 1991 with its entry into Mexico in response to market saturation in the US. It has since opened over 4500 stores internationally and adopted a localization strategy after initial trials. Walmart faces competition from other global retailers but has a first mover advantage in some markets. Globalization refers to the increasing integration and interdependence of world economies through both the globalization of markets and production. While markets and production have become more global, differences still exist between countries that require customized strategies.
International business involves transactions between two or more countries and comprises a large portion of global business. It differs from domestic business in several key ways. International business must navigate different legal systems, currencies, resources, distances, languages, and cultures between nations. Specifically, parties must adjust practices to comply with local laws, convert currencies, source resources available in other countries, account for greater transportation distances, and consider language and cultural differences when operating internationally.
The document discusses Michael Porter's Diamond Model, which analyzes the competitive advantages of nations and industries. The model identifies four key attributes that determine national advantage: factor conditions, related and supporting industries, demand conditions, and firm strategy/rivalry. It provides an example analysis of the mobile telecommunications industry using the Diamond Model framework. The model can help organizations identify national-level factors that build advantages and inform internationalization strategies.
Presentation on international business( differences in culture)Md. Sourav Hossain
This assignment will help every student for making their assignment and presentation better and effective. From it every student will understand the cultural differences in the world.
The document discusses key concepts in international marketing, including:
1. Using the SLEPT framework to analyze social, legal, economic, political, and technological factors in foreign markets.
2. The differences between domestic, export, international, and global marketing approaches.
3. Understanding how uncontrollable external factors and controllable marketing variables differ significantly across international markets.
Chapter 1 (Introduction to International Business and its global linkages)mbamgtjnu
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise boosts blood flow and levels of neurotransmitters and endorphins which elevate and stabilize mood.
The document discusses various international business strategies that companies can employ when expanding globally, including global, international, multi-domestic, and transnational strategies. It analyzes the pros and cons of each strategy based on the pressures of local responsiveness and cost reduction. Additionally, the document explores concepts like core competencies, economies of scale, and global learning which are important considerations for companies developing international business strategies.
The document outlines the evolution of international trade theories from mercantilism to contemporary theories of national competitive advantage. It discusses key theories including absolute advantage, comparative advantage, factor proportions theory, product life cycle theory, new trade theory, and Porter's diamond model of national advantage. Theories are compared and criticisms addressed. Business implications are described around location decisions, first-mover advantages, and policy impacts on firms.
This document discusses various entry strategies for international marketing. It outlines 10 main strategies: exporting, licensing, franchising, contract manufacturing, management contracts, joint ventures, strategic alliances, mergers and acquisitions, wholly-owned subsidiaries, and turnkey projects. Each strategy is briefly defined and an example is provided. The strategies range from more indirect, lower commitment options like exporting and licensing, to higher commitment options that involve greater control like wholly-owned subsidiaries.
This document provides an overview of international marketing. It defines international marketing and discusses how the marketing environment differs internationally from domestic markets due to factors like competition, regulations, culture, and politics. It also outlines various stages of international marketing involvement, from no direct foreign marketing to global marketing. Additionally, it discusses challenges like self-reference criterion and ethnocentrism that marketers must overcome to effectively adapt to foreign cultures.
International Business_Chapter 4_International Trade Theory_Charles W. HillMd. Bellal Hossain Raju
This document provides an overview of international trade theories, including:
- Mercantilism from the 16th century which argued countries should maximize exports and minimize imports.
- Adam Smith's theory of absolute advantage from 1776 which argued countries should specialize in what they produce most efficiently.
- David Ricardo's theory of comparative advantage from 1817 which extended the argument for free trade.
- Later theories such as Heckscher-Ohlin, product life cycle theory, and theories addressing firm strategy and national competitive advantage.
IBM was founded in 1911 as Computing-Tabulating-Recording Company and later renamed International Business Machines. It was the first to produce computers for governments and businesses. IBM entered the personal computer market in 1981 and helped establish the PC standard. The company defines itself by persistent values like dedication to clients, innovation, and trust. IBM plans to earn $40 billion from cloud and other growing tech areas by 2018 through continued innovation and solutions to global problems.
This document discusses international trade and the dynamic global environment. It covers topics such as the definition of international trade, reasons for engaging in international trade including globalizing products and meeting demand from other countries. It also discusses foreign exchange accounts, policies to protect infant industries, barriers to trade such as tariffs and quotas, the General Agreement on Tariffs and Trade, the World Trade Organization, and the roles of institutions like the IMF and World Bank in stabilizing markets and promoting economic development.
Regional economic integration refers to agreements among countries in a geographic region to reduce and ultimately remove trade barriers. Different levels of integration exist, from free trade areas with no barriers to goods and services, to customs unions with common external trade policies, to economic and monetary unions with synchronized fiscal and monetary policies and a shared currency. While integration increases economic growth and political cooperation, it also risks loss of sovereignty and job losses as domestic industries become uncompetitive. The formation of the European Union sought to foster lasting peace and economic power in Europe following two world wars.
The document discusses globalization and multinational corporations. It describes how globalization is driven by market, cost, government, and competitive factors. It also outlines the size and growth of multinational corporations, their diversity in terms of business models, locations, and organizational structures. The benefits and challenges of multinational investment for both host countries and corporations are presented.
The document discusses strategy in international business. It covers topics like the role of strategy, industry structure and the five forces model, value creation through cost leadership and differentiation, global integration versus local responsiveness pressures, and the integration-responsiveness grid for measuring these pressures. The value chain and how it is configured and coordinated in response to changes is also addressed. Different types of strategies are outlined, and future visions for strategies with concepts like metanational and cybercorp companies.
Modes of entry to international businessHarsh Bansal
The document discusses different modes of entry into international business, including exporting, licensing, franchising, contract manufacturing, management contracts, foreign direct investment (FDI) without alliances, and FDI with alliances. It provides details on the key characteristics, advantages, and disadvantages of each mode. Exporting allows gradual market entry at relatively low financial risk but with logistical complexities. Licensing and franchising provide low-cost ways to assess markets but have dependence on partners. FDI through greenfield investment gives full control but requires high expenses. Strategic alliances through mergers, acquisitions, and joint ventures combine strengths but also carry shared ownership risks.
This document discusses various modes of international trade that companies can use to enter foreign markets. It describes exporting, franchising, licensing, joint ventures, countertrade, turnkey contracts, contract manufacturing, mergers and acquisitions, and third country locations. For each mode, it provides details on what they are, examples, and potential advantages and disadvantages from the perspective of the company. The key modes covered are exporting, franchising, licensing, joint ventures, and mergers and acquisitions.
International Business Management unit 1 introductionGanesha Pandian
This document provides an overview of international business management. It defines international business as transactions across national borders that satisfy objectives of individuals, companies, and organizations. It then discusses reasons for internationalization like increased opportunities, risks, and profits. Key factors driving globalization include developing markets, low-cost production, trade blocks, and declining barriers. The document also examines country attractiveness analysis, political and legal environments, risks in international business, and classifications of those risks. It provides examples of political systems and outlines strategies for managing political risks.
This document discusses different modes that companies can use to enter international business, including exporting, licensing, franchising, foreign direct investment, and strategic alliances. It describes the key features and differences between indirect exporting, direct exporting, intra-corporate transfers, licensing, franchising, contract manufacturing, management contracts, turnkey projects, greenfield investment, mergers and acquisitions, and joint ventures. It also provides the advantages and disadvantages of each entry mode.
The document discusses the political environment factors that businesses must consider when expanding overseas. It provides details on Hong Kong's political system and environment. Hong Kong has a relatively stable political system due to its "one country, two systems" agreement with China that guarantees its capitalist system and limited democracy until 2047. The political factors discussed that influence business include the type of political system, stability, policies on taxation, intellectual property, and product safety laws.
Walmart began its global expansion in 1991 with its entry into Mexico in response to market saturation in the US. It has since opened over 4500 stores internationally and adopted a localization strategy after initial trials. Walmart faces competition from other global retailers but has a first mover advantage in some markets. Globalization refers to the increasing integration and interdependence of world economies through both the globalization of markets and production. While markets and production have become more global, differences still exist between countries that require customized strategies.
International business involves transactions between two or more countries and comprises a large portion of global business. It differs from domestic business in several key ways. International business must navigate different legal systems, currencies, resources, distances, languages, and cultures between nations. Specifically, parties must adjust practices to comply with local laws, convert currencies, source resources available in other countries, account for greater transportation distances, and consider language and cultural differences when operating internationally.
The document discusses Michael Porter's Diamond Model, which analyzes the competitive advantages of nations and industries. The model identifies four key attributes that determine national advantage: factor conditions, related and supporting industries, demand conditions, and firm strategy/rivalry. It provides an example analysis of the mobile telecommunications industry using the Diamond Model framework. The model can help organizations identify national-level factors that build advantages and inform internationalization strategies.
Presentation on international business( differences in culture)Md. Sourav Hossain
This assignment will help every student for making their assignment and presentation better and effective. From it every student will understand the cultural differences in the world.
The document discusses key concepts in international marketing, including:
1. Using the SLEPT framework to analyze social, legal, economic, political, and technological factors in foreign markets.
2. The differences between domestic, export, international, and global marketing approaches.
3. Understanding how uncontrollable external factors and controllable marketing variables differ significantly across international markets.
Chapter 1 (Introduction to International Business and its global linkages)mbamgtjnu
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise boosts blood flow and levels of neurotransmitters and endorphins which elevate and stabilize mood.
The document discusses various international business strategies that companies can employ when expanding globally, including global, international, multi-domestic, and transnational strategies. It analyzes the pros and cons of each strategy based on the pressures of local responsiveness and cost reduction. Additionally, the document explores concepts like core competencies, economies of scale, and global learning which are important considerations for companies developing international business strategies.
The document outlines the evolution of international trade theories from mercantilism to contemporary theories of national competitive advantage. It discusses key theories including absolute advantage, comparative advantage, factor proportions theory, product life cycle theory, new trade theory, and Porter's diamond model of national advantage. Theories are compared and criticisms addressed. Business implications are described around location decisions, first-mover advantages, and policy impacts on firms.
This document discusses various entry strategies for international marketing. It outlines 10 main strategies: exporting, licensing, franchising, contract manufacturing, management contracts, joint ventures, strategic alliances, mergers and acquisitions, wholly-owned subsidiaries, and turnkey projects. Each strategy is briefly defined and an example is provided. The strategies range from more indirect, lower commitment options like exporting and licensing, to higher commitment options that involve greater control like wholly-owned subsidiaries.
This document provides an overview of international marketing. It defines international marketing and discusses how the marketing environment differs internationally from domestic markets due to factors like competition, regulations, culture, and politics. It also outlines various stages of international marketing involvement, from no direct foreign marketing to global marketing. Additionally, it discusses challenges like self-reference criterion and ethnocentrism that marketers must overcome to effectively adapt to foreign cultures.
International Business_Chapter 4_International Trade Theory_Charles W. HillMd. Bellal Hossain Raju
This document provides an overview of international trade theories, including:
- Mercantilism from the 16th century which argued countries should maximize exports and minimize imports.
- Adam Smith's theory of absolute advantage from 1776 which argued countries should specialize in what they produce most efficiently.
- David Ricardo's theory of comparative advantage from 1817 which extended the argument for free trade.
- Later theories such as Heckscher-Ohlin, product life cycle theory, and theories addressing firm strategy and national competitive advantage.
IBM was founded in 1911 as Computing-Tabulating-Recording Company and later renamed International Business Machines. It was the first to produce computers for governments and businesses. IBM entered the personal computer market in 1981 and helped establish the PC standard. The company defines itself by persistent values like dedication to clients, innovation, and trust. IBM plans to earn $40 billion from cloud and other growing tech areas by 2018 through continued innovation and solutions to global problems.
This document discusses international trade and the dynamic global environment. It covers topics such as the definition of international trade, reasons for engaging in international trade including globalizing products and meeting demand from other countries. It also discusses foreign exchange accounts, policies to protect infant industries, barriers to trade such as tariffs and quotas, the General Agreement on Tariffs and Trade, the World Trade Organization, and the roles of institutions like the IMF and World Bank in stabilizing markets and promoting economic development.
This document provides an overview of key concepts in international business and marketing. It discusses what international business entails, including a range of cross-border activities and considerations for large and small firms operating abroad. Cultural dynamics are also examined through models of ethnocentric, polycentric, regiocentric, and geocentric orientations. Dimensions of culture, like masculinity versus femininity and long-term versus short-term orientation, are introduced as ways to compare cultures. The roles of symbols, heroes, rituals, values, and norms in shaping culture are outlined.
The document provides an overview of international business, including:
- Benefits of international business like access to larger markets, cheaper labor, and increased quality/quantity of goods
- The five Ps of international business: product, price, proximity, preference, and promotion
- Potential costs like outsourcing, human rights issues, and environmental degradation
- Barriers to international trade such as tariffs and non-tariff barriers
- Canada's major trading partners and trade agreements
- The future of international trade bodies and increasing globalization and cultural integration.
This document provides an overview and introduction to the topics that will be covered in a textbook on international business. It defines key terms like international business and multinational enterprises. It discusses how most international business occurs through trade and foreign direct investment dominated by large firms. It also outlines the major economic regions of the world called the triad and how regional strategies are important for competing in international business. The document concludes by providing a framework and model for the structure of the textbook.
Chapter 3 History and Geography The Foundations of Culture Water Birds (Ali)
The importance of history and geography in the understanding of international markets
The effects of history on a country’s culture
How culture interprets events through its own eyes
How the United States moved west and how this more affected attitudes
The effect of geographic diversity on economic profiles of a country
Why markets need to be responsive to geography of a country
Economic effects of controlling population growth versus aging population
Communications are an integral part of international commerce
This document provides an overview of international business concepts including:
1. Definitions of international business and the process of internationalization from domestic to global levels.
2. Key drivers of globalization including costs, technology, government policies, and competition.
3. Common approaches to international business such as ethnocentric, regiocentric, geocentric, and polycentric orientations.
4. Important theories of international trade including absolute advantage, comparative advantage, and the Heckscher-Ohlin theory.
International Business (BBA MBA) advantages & disadvantages of international busine, approaches of international business, entry strategy, imf, international business (bba mba) entry policy, international organization, nature & scope & feature of international business, need for international business, reasons for recent growth in international busines, what is international business ?university of solapur
HIPAA Omnibus Rule: Critical Changes for Business AssociatesBridge Front
On January 25, 2013, the Office for Civil Rights (OCR) published their long-awaited updates to the HIPAA Privacy and Security Rule, the Omnibus Rules. These new rules are the first update of the HIPAA Privacy and Security Rules since the regulations were first published.
Join BridgeFront and leading consultant and attorney, Susan A. Miller, JD in this presentation that addresses the critical updates and changes that affect business associates.
The Omnibus Rules becomes effective March 26, 2013. Covered entities and business associates of all sizes will have 180 days beyond the effective date of the final rule to come into compliance with the final rule’s provisions, including the modifications to the Breach Notification Rule and the changes to the HIPAA Privacy Rule under GINA.
NATIONAL DIFF IN CULTURE CHAPTER 2 ITERNATIONAL BUSINESS 12130920-093Rashid Gorsi
This document discusses differences in political and economic systems across nations. It contrasts individualism versus collectivism, democracy versus totalitarianism, and describes three main types of economic systems: market, command, and mixed. It also outlines different types of legal systems such as theocratic, civil, and common law systems. National political and economic institutions shape a country's system of government, laws, and priorities around individual freedoms versus collective goals.
The document discusses key elements of culture including language, religion, values, manners, customs, and aesthetics. It notes that culture is learned and shared between generations, and international managers must understand cultural differences to be successful in global business. For example, gift giving customs vary between countries as do views of colors and symbols. Understanding these cultural elements can help avoid issues in business negotiations and operations across borders.
This document discusses the key environments and dimensions of business environment. It covers several topics including historical forces changing the business environment, definitions of business environment, key environments/dimensions of business such as economic, political, socio-cultural, technological, natural, and demographic environments. For each environment, the document describes factors influencing business and their impact. It also provides examples to illustrate how economic, political, technological and socio-cultural environments affect business operations and decision making.
The document summarizes key concepts in international marketing. It discusses how American businesses are increasingly globalizing and all managers must consider the global environment. International marketing involves performing business activities across borders. To be successful, firms must adapt to environmental differences between countries, such as laws, customs and cultures. The self-reference criterion and ethnocentrism can limit understanding of foreign markets if not addressed. Developing global awareness and choosing the right strategic orientation, such as domestic, multinational or global, are important for international marketing success.
This chapter discusses how history, geography, and the environment shape culture and business practices globally. It explains that understanding a country's history is important for comprehending attitudes towards government, management styles, and views of foreign companies. Additionally, it emphasizes that geography influences economic development and that sustainable development requires balancing economic growth with environmental protection. Population trends, trade routes, and natural resources are also discussed as important geographic factors for global business.
Culture can be defined as the set of understandings shared by a community, including values, ideas, perceptions, and codes of conduct. This document discusses several aspects of culture, including value systems, norms, aesthetics, customs, and language. It provides examples of how different cultures approach concepts like eye contact, colors, and hygiene. The document also summarizes several models for understanding cultural dimensions, such as Hofstede's model of power distance, uncertainty avoidance, individualism vs collectivism, and masculinity. Trompenaar's 7 dimensions model is also briefly outlined.
The document provides an introduction to international financial systems and globalization. It discusses reasons for understanding international financial systems, including the increase in global trade and opportunities. It then defines globalization as the shrinking of time and space between countries and the integration of global production and exchange. The document goes on to discuss various effects of globalization, including the emergence of global markets, changes to world trade and foreign direct investment, and technological effects. It also outlines some challenges of and strategies for adapting to globalization.
This document discusses organizational structures for multinational enterprises. It begins by introducing the relationship between organizational structure and strategic positioning based on the FSA and CSA frameworks. It then outlines early organizational structures like export departments and subsidiaries that firms use when first expanding internationally. As firms grow globally, they adopt more complex structures like the international division, global product, area, functional, and matrix structures. The document also discusses mixed, transnational network structures and factors that influence centralization vs. decentralization of decision making in multinational operations.
Global Marketing Chapter 3 : Cultural Foundations [Elegant (V)]Md. Abdur Rakib
The report include the last part Chapter 3: Cultural Foundations from Global Marketing Book by Jhonny K. Johansson. Global culture, culture across countries,global culture,global marketing,meaning of culture,self-reference criterion,silent language,SRC are the discussion topic
International trade involves the exchange of goods and services between nations through exports and imports. Nations can trade freely without barriers or impose trade barriers such as tariffs, quotas, and embargoes. While free trade provides benefits like increased specialization and variety of goods, it can also result in job losses from foreign competition. Trade barriers protect domestic industries and jobs but also increase prices for consumers by restricting competition.
International trade involves the exchange of goods and services between nations through exports and imports. Nations can trade freely without barriers or impose trade barriers such as tariffs, quotas, and embargoes. While free trade provides benefits like increased specialization and variety of goods, it can also result in job losses from foreign competition. Trade barriers protect domestic industries and jobs but also increase prices for consumers by restricting competition.
International trade involves the exchange of goods and services between nations through exports (goods and services sold abroad) and imports (goods and services bought from foreign producers). Nations can trade freely or impose trade barriers like tariffs, quotas, and embargoes. Free trade provides benefits like increased specialization and competition that lowers prices, while barriers protect domestic industries and jobs but increase costs for consumers.
International trade involves the exchange of goods and services between nations through exports (goods and services sold abroad) and imports (goods and services bought from foreign producers). Nations can trade freely without barriers or impose trade barriers like tariffs, quotas, and embargoes. Free trade provides benefits like increased specialization and competition that drives down prices. However, free trade also brings costs like job losses from increased import competition. Trade barriers protect domestic industries and jobs but also increase prices for consumers.
International trade involves the exchange of goods and services between nations through exports (goods and services sold abroad) and imports (goods and services bought from foreign producers). Nations can trade freely without barriers or impose trade barriers like tariffs, quotas, and embargoes. Free trade provides benefits like increased specialization and competition that drives down prices. However, free trade also brings costs like job losses from increased import competition. Trade barriers protect domestic industries and jobs but also increase prices for consumers.
This document discusses trade barriers such as tariffs and quotas that countries impose on imports. Tariffs are taxes on imported goods that raise their prices, making domestic goods more competitive. Quotas limit the quantity of imports allowed, creating shortages that also raise prices of imported goods. While trade barriers protect domestic industries and jobs, they ultimately hurt consumers by reducing competition and choice, and raising the costs of goods. Most economists agree that free trade is better for economic growth.
Trade barriers such as tariffs and quotas can limit international trade between nations. While trade barriers protect domestic industries and jobs, they also increase the prices consumers pay for goods by reducing competition. Most economists agree that free trade without barriers allows nations to benefit from higher standards of living through increased trade. Certain workers may lose jobs to imports in some industries, but consumers have access to less expensive, higher quality goods from other countries overall.
Trade barriers such as tariffs and quotas can limit international trade between nations. While trade barriers protect domestic industries and jobs, they can also increase prices for consumers and decrease overall economic efficiency. Most economists agree that allowing free trade between countries is generally beneficial, as it allows goods and services to be exchanged freely and both trading partners typically benefit.
This document provides an overview of protectionism and its effects on international trade. It defines protectionism as government policies that restrict free trade to protect local industries from foreign competition, through measures like tariffs, quotas, and subsidies. It then discusses different types of protectionist policies and their impacts. While protectionism aims to protect domestic jobs in the short-term, it ultimately makes countries less competitive and can strain foreign relations. The document also notes arguments for and against protectionism, and that while protection may help infant industries, it discourages innovation and leads to lower quality, more expensive domestic goods over time.
This document discusses trade barriers such as tariffs, quotas, and embargoes that countries impose to limit international trade. Tariffs are taxes on imported goods that raise their prices, while quotas limit the quantity of imports allowed. Embargoes completely prohibit trade with another country, often for political reasons. While trade barriers protect domestic industries and jobs, they also increase consumer prices and result in less competition compared to free trade among nations without such restrictions. Most economists argue that free trade is better for economic growth.
The document discusses various topics related to international trade such as the growth of international trade over time, protectionism versus free trade, and specific trade issues like the banana wars between the US and EU. It provides definitions of international trade and protectionism. Protectionism aims to restrict imports and protect local industries while free trade allows trade without government barriers. The document also notes both the benefits and criticisms of free trade, such as increased specialization but also potential job losses.
Trade barriers such as tariffs and quotas can limit international trade between nations. While trade barriers protect domestic industries and jobs, they can also raise prices for consumers and decrease overall economic efficiency by reducing competition. Most economists agree that allowing free trade between countries is generally beneficial, as it allows goods and services to be exchanged at better prices, resulting in higher standards of living. However, some workers may lose jobs as their industries face more international competition.
Trade barriers such as tariffs and quotas can limit international trade between nations. While trade barriers protect domestic industries and jobs, they can also raise prices for consumers and decrease overall economic efficiency by reducing competition. Most economists agree that allowing free trade between countries is generally beneficial, as it allows goods and services to be exchanged at better prices, resulting in higher standards of living. However, some workers may lose jobs as their industries face more international competition.
Trade barriers such as tariffs and quotas can limit international trade between nations. While trade barriers protect domestic industries and jobs, they can also raise prices for consumers and decrease overall economic efficiency by reducing competition. Most economists agree that allowing free trade between countries is generally beneficial, as it allows goods and services to be exchanged at better prices, resulting in higher standards of living. However, some workers may lose jobs as their industries face more international competition.
Trade barriers such as tariffs and quotas can limit international trade between nations. While trade barriers protect domestic industries and jobs, they can also raise prices for consumers and decrease overall economic efficiency by reducing competition. Most economists agree that allowing free trade between countries is generally beneficial, as it allows goods and services to be exchanged at better prices, resulting in higher standards of living. However, some workers may lose jobs as their industries face more international competition.
Trade barriers such as tariffs and quotas can limit international trade between nations. While trade barriers protect domestic industries and jobs, they can also raise prices for consumers and decrease overall economic efficiency by reducing competition. Most economists agree that allowing free trade between countries is generally beneficial, as it allows goods and services to be exchanged at better prices, resulting in higher standards of living. However, some workers may lose jobs as their industries face more international competition.
This document discusses trade barriers and their costs and benefits. It defines trade as the voluntary exchange of goods and services between countries, noting that both parties benefit. It then contrasts free trade with trade barriers such as tariffs, quotas, and embargoes. While trade barriers protect domestic industries and jobs, they ultimately raise prices for consumers and are discouraged by economists as they reduce overall standards of living. The document uses examples like EU tariffs and the US-Cuba embargo to illustrate different types of barriers.
This document provides notes on international trade concepts. It begins with reasons why nations trade, such as lower prices, greater choice, and differences in resources. It then discusses absolute and comparative advantage using an example of an industrialized country trading with a developing country. Key terms like imports, exports, tariffs, and protectionism are defined. Arguments for and against protectionism are outlined. The document concludes with an overview of the history and functions of the World Trade Organization.
This document discusses the key steps for launching a high technology venture, including screening technologies, preparing strategy and positioning, determining capital needs, building a management team, and implementing the launch framework. It emphasizes identifying market opportunities and technological feasibility during the screening process, developing a marketing plan including product positioning and pricing, leveraging alliances to reduce costs and risks, and establishing an exit strategy from the start.
This document outlines considerations and steps for selling a business venture. It discusses personal reasons like burnout or health issues, and business reasons like needing capital or new competition. Key steps include determining the company's valuation based on finances and strategic value, identifying the best buyer candidates like competitors or financial buyers, and choosing the best tax method like stock-for-stock. It also recommends keeping finances and projections updated, maintaining the business well to attract buyers, and allowing up to a year for the selling process from identifying candidates to closing the sale.
Buying an existing business or turnaround business and opening franchises are two options for entrepreneurship. When buying an existing business, advantages include an established business, lower costs, and established policies, while disadvantages include negative seller motivation and key employee losses. Evaluating a turnaround business requires analyzing assets, operations, and the business environment. Guidelines for purchasing turnarounds include establishing a clear market/product, determining profit margins, achieving sales, implementing financial controls, and analyzing statements. Franchising provides advantages like a proven product and business plan but also has disadvantages like restrictions and high startup expenses. Proper evaluation of the franchiser and an understanding of franchise fees are important.
This document discusses key financial documents and concepts for businesses: the balance sheet, income statement, statement of cash flows, financial projections, budgets, forecasts, and break-even analysis. It explains how to calculate and use ratios from the balance sheet to analyze a company's financial health. Preparing budgets, forecasts, and break-even analysis can help entrepreneurs understand their business's financial requirements and determine if a certain output level will be profitable.
This document discusses key components of developing an e-business strategy, including crafting a customer strategy to acquire and retain customers, and understanding their needs. It also discusses enterprise resource planning (ERP) to gather information across business units, supply chain management (SCM) and examples of Dell and Walmart's SCM strategies, customer relationship management (CRM) to grow revenue and provide excellent service, and e-procurement to automate ordering.
The document discusses building an organization for growth and outlines the entrepreneurial stages of a startup. It describes setting up a chief executive officer and board of directors to oversee management, strategic planning, major investments, policy, compliance, and financing. A board of advisors is also recommended to provide support through advice and networking. The stages include generating an idea, confirming viability, preparing a business plan, hiring a management team, seeking seed capital, additional capital, product launch, working capital raises, and potential merger or IPO. Risks include lack of realism, leaks, lack of funding or capital, competition, running out of money, poor market acceptance, and counteroffers.
This document discusses intellectual property and provides guidance on developing, managing, protecting, and exploiting intellectual property. It covers various types of intellectual property including patents, copyrights, trademarks, and trade secrets. It also discusses best practices for commercializing intellectual property, obtaining patents, protecting intellectual property on the internet, and legal considerations around intellectual property.
This document discusses various methods for obtaining growth funding for a business, including venture capital and private equity investment. It covers the venture capital process, evaluating and valuing a venture, and preparing presentations for investors. Key valuation methods include earnings valuation using price-earnings multiples and discounted cash flow valuation. The document provides guidelines on determining a company's value, selecting an appropriate valuation approach, and targeting the right investors.
This document discusses early stage funding sources for entrepreneurs, including personal funding through self-funding, moonlighting, or bootstrapping. It also covers angel financing, funding from friends and family, bank loans, programs from the Small Business Administration (SBA) like SBA loans and the SBIR program, small business investment companies, state development programs, and sources for finding investors like angel networks, venture capital firms, and investor directories. The most common sources of startup capital cited are personal savings, family, and bank loans.
This document discusses various aspects of setting up different types of business entities, including sole proprietorships, C corporations, S corporations, partnerships, and limited liability companies. It provides an overview of the key characteristics and considerations for each structure, such as liability, taxation, governance, and legal agreements. The document emphasizes choosing a structure based on the business goals and considering an LLC or S corporation for smaller businesses, and a C corporation if planning to raise capital or go public.
This document provides guidance on preparing an effective business plan by outlining each section and what they should contain. The sections include an executive summary, business description, market analysis, management team, operations, critical risks, and financial projections. The executive summary should capture investor interest with a 2-3 page overview of the business idea. The business description provides details on the company, product, and strategy. The market analysis demonstrates how the company will capture market share. The financial projections must convince investors the venture is financially viable.
This document provides an overview of how to analyze markets, customers, and competition when starting a new business. It discusses identifying niche markets, conducting market segmentation, evaluating competitors, developing a pricing plan, and positioning products or services. Key aspects covered include defining target customer segments, conducting competitive analyses, assessing strengths/weaknesses, and determining appropriate pricing strategies. The document provides questions to consider and sample evaluations for each step of the market analysis and planning process.
This document outlines how to evaluate new business opportunities through analyzing factors that create opportunities, identifying opportunity costs, and developing a framework to assess opportunities. It discusses preparing an opportunity analysis by asking evaluation questions, researching factors like technology and markets that influence opportunities, and determining where ideas originate. The document also provides guidance on conducting primary and secondary market research, identifying necessary resources, and evaluating financing alternatives.
The document outlines the entrepreneurial process, which consists of 6 steps: 1) identify an opportunity, 2) develop the concept and write a business plan, 3) determine required resources, 4) acquire financing/partners, 5) implement and manage, and 6) harvest the venture through exiting or expanding. It emphasizes identifying opportunities through changing demographics, technologies, regulations and developing a business plan to acquire necessary financing, expertise, distribution channels to implement a new product, service, or process. The entrepreneurial mindset involves constantly seeking opportunities for change and pursuing the best opportunities with discipline and engagement.
This document discusses bailment and pledge under Indian law. It defines bailment as the delivery of goods by one person to another for a specific purpose, to be returned once the purpose is accomplished. The bailor delivers the goods to the bailee. A bailment creates a legal duty for the bailee to take reasonable care of the goods and return them undamaged. A pledge is a type of bailment where goods are delivered as security for a debt; the pledgee can retain or sell the goods if the debt is not repaid. The key differences between bailment and pledge are that in a pledge the goods are delivered as security for a loan rather than for safekeeping or repairs, and the pledgee
This document defines contracts and their different types. A contract is an agreement that is enforceable by law. There must be an offer and acceptance, along with consideration and lawful object. Agreements can be valid and enforceable, voidable at the option of parties, void from the beginning, or unenforceable due to technical defects. Illegal agreements that violate laws are not permitted. Valid contracts contain all essential elements like free consent and create legal obligations between parties.
An offer is a willingness to do or not do something if the other party consents. An offer becomes an agreement when accepted by the offeree. For an offer to be valid it must be definite, clear, communicated, and not revoked before acceptance. Acceptance must be absolute, unconditional, communicated to the offeror, and given within a reasonable time. When these conditions are met, the offer and acceptance form a legally binding agreement.
An agent is a person employed to act on behalf of another person, called the principal. An agency relationship is formed when the principal consents to the agent acting on their behalf. The document outlines various types of agents including general, special, universal, and mercantile agents. It also discusses the duties of agents, which include following the principal's directions, rendering accounts, and not making secret profits. The rights of agents include the right to receive remuneration and lien. An agency can be terminated through agreement, revocation, completion of business, expiry of time, or death/insanity of the principal or agent.
- Consideration is something of value that is exchanged between parties in a contractual agreement. It can take the form of an act, abstinence from an act, or a promise. For the agreement to be valid, consideration must move from one party to benefit the other.
- Examples of consideration include payment of money for goods or services, a promise to refrain from certain acts, or mutual promises such as in an agreement to sell a car. Consideration needs to be real, not impossible to fulfill or uncertain.
- For consideration and the object of the agreement to be lawful, it cannot be forbidden by law, defeat legal provisions, involve fraud, injury to people or property, be regarded as immoral, or
This document discusses partnerships under Pakistani law. It defines a partnership as a voluntary association of two or more people who contribute money, property, time or skills to operate a business for profit and share losses. The key points covered include types of partnerships and partners, how partnerships are formed through partnership agreements, characteristics like unlimited liability and mutual agency between partners, and ways partnerships can dissolve.
SATTA MATKA SATTA FAST RESULT KALYAN TOP MATKA RESULT KALYAN SATTA MATKA FAST RESULT MILAN RATAN RAJDHANI MAIN BAZAR MATKA FAST TIPS RESULT MATKA CHART JODI CHART PANEL CHART FREE FIX GAME SATTAMATKA ! MATKA MOBI SATTA 143 spboss.in TOP NO1 RESULT FULL RATE MATKA ONLINE GAME PLAY BY APP SPBOSS
Recruiting in the Digital Age: A Social Media MasterclassLuanWise
In this masterclass, presented at the Global HR Summit on 5th June 2024, Luan Wise explored the essential features of social media platforms that support talent acquisition, including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok.
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
How MJ Global Leads the Packaging Industry.pdfMJ Global
MJ Global's success in staying ahead of the curve in the packaging industry is a testament to its dedication to innovation, sustainability, and customer-centricity. By embracing technological advancements, leading in eco-friendly solutions, collaborating with industry leaders, and adapting to evolving consumer preferences, MJ Global continues to set new standards in the packaging sector.
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...my Pandit
Dive into the steadfast world of the Taurus Zodiac Sign. Discover the grounded, stable, and logical nature of Taurus individuals, and explore their key personality traits, important dates, and horoscope insights. Learn how the determination and patience of the Taurus sign make them the rock-steady achievers and anchors of the zodiac.
Structural Design Process: Step-by-Step Guide for BuildingsChandresh Chudasama
The structural design process is explained: Follow our step-by-step guide to understand building design intricacies and ensure structural integrity. Learn how to build wonderful buildings with the help of our detailed information. Learn how to create structures with durability and reliability and also gain insights on ways of managing structures.
IMPACT Silver is a pure silver zinc producer with over $260 million in revenue since 2008 and a large 100% owned 210km Mexico land package - 2024 catalysts includes new 14% grade zinc Plomosas mine and 20,000m of fully funded exploration drilling.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Industrial Tech SW: Category Renewal and CreationChristian Dahlen
Every industrial revolution has created a new set of categories and a new set of players.
Multiple new technologies have emerged, but Samsara and C3.ai are only two companies which have gone public so far.
Manufacturing startups constitute the largest pipeline share of unicorns and IPO candidates in the SF Bay Area, and software startups dominate in Germany.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
Top mailing list providers in the USA.pptxJeremyPeirce1
Discover the top mailing list providers in the USA, offering targeted lists, segmentation, and analytics to optimize your marketing campaigns and drive engagement.
3 Simple Steps To Buy Verified Payoneer Account In 2024SEOSMMEARTH
Buy Verified Payoneer Account: Quick and Secure Way to Receive Payments
Buy Verified Payoneer Account With 100% secure documents, [ USA, UK, CA ]. Are you looking for a reliable and safe way to receive payments online? Then you need buy verified Payoneer account ! Payoneer is a global payment platform that allows businesses and individuals to send and receive money in over 200 countries.
If You Want To More Information just Contact Now:
Skype: SEOSMMEARTH
Telegram: @seosmmearth
Gmail: seosmmearth@gmail.com
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
3. Introduction
Japan and US: Skis, baseball, rice
French protect their film and broadcast
industry from foreign competition e. g.
US: CNN (French version), American TV
shows,
Neutrogena to Russia. Tariff for
pharmaceuticals: 5% duty, soap
15%, cosmetics 20%.
4. An Overview
Yesterday’s competitive battles: Western
Europe, Japan and US
Tomorrow’s competitive battles: Latin (South)
America, Eastern
Europe, China, Russia, India, Asia and Africa.
Worldwide competition and significant
advantage of product availability
Satellite communication and global companies
Tendency of protectionism gains momentum
5. The 20th to 21st Century
Countries have been more interdependent, have
greater opportunities for international trade
First half of the 20Th century: Two world wars and
recession
Second half of the 20th century: World divides into
socialism and capitalism
US infused capitalism to rest of the world
Dissolution of colonial powers
Benefits of the foreign economic assistance by US was
tremendous e. g. agricultural products, manufactured
goods and services.
6. World trade and US multinationals
Rapid growth of war torn economies and
previously underdeveloped countries led to new
global marketing opportunities
During 1950s US companies started export
By 1960s US MNC were facing two major
challenges:
Resistance to FDI (in foreign countries)
Increasing competition
Latin America: Expropriate (seize) USFDI
Europe: Strong public demand to limit FDI
7. World trade and US MNC Cont .
US supremacy was challenged
Competition arose from
Japan, Germany, other industrial world and
many developing countries
Less developed countries were reclassified as
newly industrialized countries e. g.
Brazil, Mexico, China, S.
Korea, Taiwan, Singapore, Hong Kong
8. World trade and US MNC Cont .
Developing countries like Venezuela, Chile
and Bangladesh established state owned
enterprises (SOE)that operated in other
countries
Bangladesh, the sixth largest exporter of
garments to US owns a mattress company in
Georgia.
9. The Twenty First Century
Growth of US economy slowed down
Organization for economic cooperation and
development (OECD) estimates that the
economies of member countries will expand
for the next 25 years
The WB estimates that
Brazil, China, India, Indonesia and Russia will
have a major share in world trade
10. Twenty first century Cont. . .
Thus economic power will shift from
Japan, US and EU to Latin America, Eastern
Europe, Asia and Africa
Companies are more efficient to improve
productivity e. g. Matsushita continue to
expand their global reach
Nestle is consolidating its dominance in
global consumer markets by acquiring and
marketing country’s local brands.
11. Balance of payment
The system of accounts that records a
nation’s international financial transactions is
called balance of payment
It is maintained on a double entry book
keeping system as in assets and liabilities or
debit and credit.
It is a record of condition
12. Balance of payment Cont . . .
There are three accounts:
Current Account: Export, import and services
plus unilateral transfer of funds
Capital account: Direct investment, portfolio
investment, short term capital movements to
and from countries and the official
Reserve account: Export and import of
gold, increases and decreases of foreign
exchange and increase and decrease in liabilities
to foreign central banks.
13. Protectionism: Logic and illogic
1. Protection of an infant industry
2. Protection of the home market
3. Need to keep money at home
4. Encouragement of capital accumulation
5. Maintenance of standard of living and real
wages
6. Conservation of natural resources
7. Industrialization of a low wage nation
14. Protectionism: Logic . . . Cont. . .
8. Maintenance of employment and reduction
of unemployment
9. National defense
10.Increase of business size
11.Retaliation and bargaining
15. Free Trade vs. Trade Barriers
Nations can trade freely with each other or
there are trade barriers.
Free Trade: Nothing hinders or gets in the
way from two nations trading with each
other.
Trade Barriers: Trade is difficult because
things get in the way.
There are costs and benefits related to free
trade as well as trade barriers.
16. Free Trade - Benefits
When nations specialize and trade, total world
output or sales is increased.
Companies can produce for foreign markets as
well as domestic markets (markets in the home
country).
This means there is potential for making more
money as there are more markets to sell goods
or services in.
More variety of goods are available from a
world market than just a domestic market.
Prices of goods are decreased through
increased competition
17. Free Trade - Costs
The domestic (home) country can lose money
because the foreign goods allowed into the
market increase competition and make it less
likely people will buy domestic products.
Example: In the U.S., people might want to
buy a foreign automobile like a Honda or
Toyota instead of an American made car.
Increased competition means lower prices.
Less money will go into the domestic market
place and this can cause factories to be closed
and jobs to be eliminated.
18. Trade Barriers – Three Types
Barriers to trade are things that hinder or
get in the way of trading.
They can be cultural, physical , or economic.
Cultural barriers: language, currency, belief
system.
Physical barriers: mountains, rivers, etc.
Example: The Alps Mountains in Europe
Economic barriers: government rules that
restrict, block or discourage international trade
between countries.
19. Trade Barriers - Economic
• The most common: trade barriers are:
tariffs, which are taxes on imports.
quotas
Voluntary export restraints (VERs)
Boycotts and embargos
Monetary barriers
Standards (QA, Health)
Antidumping penalties: Predatory pricing (Prices
lower that the cost)
20. Tariffs
A tariff is a tax put on goods imported from
abroad and sometimes referred to as custom
duties.
It is the most used and most familiar type of
trade restriction.
The effect of a tariff is to raise the price of the
imported product.
It makes imported goods more expensive so
that people are more likely to purchase
domestic products.
The money received from the tariff is collected
by the domestic government.
21. Quotas
A quota is a limit on the amount of goods that
can be imported.
Putting a quota on a good creates a shortage,
which causes the price of the good to rise and
makes the imported goods less attractive for
buyers. This encourages people to buy
domestic products.
A quota on shoes, for example, might limit
foreign-made shoes to 10,000,000 pairs a year.
If Americans buy 200,000,000 pairs of shoes
each year, this would leave most of the market
to American producers.
22. Voluntary Export Restraint – VER or
Orderly Market Agreement (OMA)
This is a self imposed restriction by an exporting
country to export certain commodity. Primarily
this is a preemptive measure in view of the
threat of restriction that the importing country
may impose for import e. g. Japan imposed a
VER on its auto exports into the U.S. as a result
of American pressure in the 1980s. The VER
subsequently gave the U.S. auto industry some
protection against a flood of foreign competition.
23. Voluntary Export Restraint – VER or Orderly
Market Agreement (OMA) Cont.
There are ways in which a company can avoid a
VER. For example, the exporting country's
company can always build a manufacturing
plant in the country to which exports would be
directed. By doing so, the company will no
longer need to export goods, and should not be
bound by its country's VER e. g. Honda built its
manufacturing plant in Detroit during late
eighties based on this policy.
24. Boycotts and Embargoes
Boycotts and Embargoes are a
government order which completely
prohibits trade with another country.
If necessary, the military actually sets
up a blockade to prevent movement of
merchant ships into and out of
shipping ports.
Example: US for Iran, Iraq and Cuba
25. Embargoes (cont . . .)
The embargo is the harshest type of trade
barrier and is usually enacted for political
purposes to hurt a country economically
and thus undermine the political leaders
in charge.
Such was the case with the Cuban
embargo which has been in place since
the 1960s.
26. Monetary Barrier
This is imposed through
Blocked currency
Differential exchange rates (e. g. for desirable
goods one unit to one unit of currency, for
less desirable 1 unit local currency to 2 unit
of importing currency etc. and
Government approval requirement for
securing foreign exchange
27. Standards
It is imposed to protect health and safety.
The standard varies from country to country
Imposed for food items as well as items with
technical specifications e. g. Jute rope for
ships etc.
Shelf life of medicines
28. Trade Barriers - Benefits
Most barriers to trade are designed to
prevent imports from entering a country.
Trade barriers provide many benefits:
protect homeland industries from competition
protect jobs
help provide extra income for the government.
Decreases the costs of these goods
– through increased competition
29. Trade Barriers - Costs
Tariffs increase the price of imported
goods.
Less competition from world markets
means there is an increase in the price.
The tax on imported goods is passed
along to the consumer so the price of
imported goods is higher.
30. International Trade Barriers
Common Arguments
-Jobs Are Destroyed by Trade
-Worker Wages Are Hurt by Trade.
-National Security Is Threatened by Trade.
-Special Industries with Unique and Substantial
Economic Potential will not mature without
Protection from Trade.
-Unfair Competition Undermines the Benefits of
Trade.
Major International Trade Agreements
EU, NAFTA, ASEAN
31. The Omnibus Trade and
Competitiveness Act
• Formed in 1988
• Designed to deal with trade
deficits, protectionism, and overall fairness to
trading partners.
• To deal the trading partners on ‘how they
operate’ rather than ‘how we want them to
behave’
• More a reciprocative Act
32. North American Free Trade
Agreement (NAFTA)
Began on January 1, 1994
Between Canada, the United
States and Mexico
NAFTA pros and cons
33. Association of Southeast Asian
Nations (ASEAN)
Established on August 8th, 1967
10 member countries
-Brunei
Darussalam, Cambodia, Indonesia, Laos, Mal
aysia, Myanmar, Philippians, Singapore, Thail
and, and Vietnam
34. European Union
What is the EU?
27 member states
The Economic and Monetary Union (EMU):
16 member states
-10th Year of the Euro
35. GATT
The General Agreement on Tariffs and Trade
(GATT) was first signed in 1947. It regulates
trade among 153 countries.
Was designed
To provide an international forum
That encouraged free trade between member states
By regulating and reducing tariffs on traded goods
Providing a common mechanism for resolving trade
disputes.
36. GATT Cont . . .
• Conducted eight rounds of talks
• The Uruguay Round, completed on December
15, 1993 after 7 years of negotiations, resulted in an
agreement among 117 countries to reduce trade
barriers and to create more comprehensive and
enforceable world trade rules.
• The Uruguay Round agreement went into effect on
January 1, 1995.
37. GATT Cont. . .
The GATT's main objective was the
“Reduction of Barriers to International Trade”
This was achieved by reducing:
Tariff barriers
Quantitative Restrictions
Subsidies on trade through a series of
agreements
38. GATT Cont.
The agreement covers 3 main elements:
1. Trade shall be conducted on a
nondiscriminatory basis
2. Protection shall be afforded domestic
industries through custom tariff
3. Consultation shall be the primary method
to solve trade problems
39. GATT Cont. . .
Eliminate trade barriers on services through
general Agreement on Trade and Services
(GATS)
Trade related Investment Measures (TRIMs)
established under GATT mentioning
investment restriction can be a major trade
barrier and can be challenged
Better integration of agricultural and textile
areas into overall trading system
40. WTO
The World Trade Organization
(WTO) reiterates the objectives
of GATT
i. e. Reduction of Barriers to
International Trade
41. Functions of WTO
Administering and Implementing the multilateral and
plurilateral trade agreements
Acting as a forum for multilateral trade negotiations
Seeking to resolve trade disputes (e. g. genetically
modified food)
Overseeing national trade policies
Cooperating with other international institutions
Maintaining trade related database
Acting as a watchdog of international trade
Forum for successful negotiation to open markets in
telecommunication and IT equipments
42. Skirting the spirit of
GATT and WTO
• China was asked to become a WTO member
and to show good faith in reducing tariffs and
other restrictions on trade.
• When companies are found to dumping, the
country places an extra tax on the product to
offset the advantage o flower price.
• Countries are negotiating bilaterally e. g. USA
and Singapore, EU with South American
countries.
43. IMF
IMF member 181 countries.
Objectives:
Stabilization of foreign exchange
rates
Establishment of freely convertible
currencies
44. IMF Cont. . .
To cope up with universally floating exchange
rates IMF has developed Special Drawing
Rights (SDRs)
SDR is in effect ‘PAPER GOLD’ represents an
average base of value derived from the value
of major currencies
45. WORLD BANK
Goals:
Reduction in poverty
Improvements in living standards by
promoting sustainable growth and
investment in people
46. WORLD BANK Cont.
There are five institutions in the world bank Group
each of which performs the following services:
Provides loan,
Providing technical assistance,
Lending directly to the private sector
Providing investors with investment guarantees
against non commercial risks like war etc
Promoting increased flow of international
investment by providing facilities
47. Protests against Global Institutions
Basic complaints against WTO, IMF and others
are as follows:
Environmental concerns
Workers exploitation
Domestic job losses
Cultural extinction
Higher oil prices
Diminished sovereignty of nations