This document provides an introduction and definitions related to international business. It discusses the history of international trade dating back to ancient Phoenician and Greek merchants. It defines key terms like international business, foreign business, multidomestic companies, global companies, and transnational corporations. It also outlines five major forces (political, technological, market, cost, competitive) that are driving international firms to globalize their operations.
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.
International Business Shivaji University SyllabusIshwar Bulbule
1. The document discusses the concept of international business, which involves business transactions across national borders, ranging from small export/import firms to large multinational corporations.
2. It describes how international businesses have grown significantly with globalization and liberalization since the 1970s, dominating the global economy.
3. International businesses must balance global and local operations and considerations, such as complying with local laws while profiting in home countries. They must also manage employment responsibly across different cultures and regulations.
The document discusses several key topics related to globalization and international business:
1. It defines globalization as the integration of world economies through reduced barriers to trade, capital, technology, and labor movement. This includes the globalization of markets and production.
2. Factors driving increased globalization include advances in technology, trade liberalization, economic reforms, growing consumerism, and global competition.
3. International business refers to commercial transactions between two or more countries, including exports, imports, and transportation. Firms engage in international business to access new markets and take advantage of factors like lower costs and skilled labor in other countries.
4. Barriers to international trade include cultural differences, political risks
The Role of Multinational Corporations a Case Study- NestleNikita Jangid
1. A multinational corporation (MNC) is a company that operates in multiple countries, with management headquartered in one country but conducting business in several other host countries.
2. MNCs engage in activities like exporting, importing, and manufacturing across different countries. They take a global perspective in decision-making.
3. Some of the earliest MNCs included the Knights Templar in the 12th century, the British East India Company in 1600, and the Dutch East India Company in 1602. Today there are over 40,000 MNCs operating globally.
The document discusses the triad economies of the United States, European Union, and Japan, which dominate international business and foreign direct investment. It outlines several reasons why multinational enterprises from triad nations invest abroad, such as increasing sales and profits by entering new markets, reducing costs through lower labor or material costs, and protecting domestic and foreign market share from competitors.
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.
This document provides information about international business and regulatory bodies. It defines international business and lists factors that affect it such as cultural differences, logistics, and different laws between countries. It then discusses the structure and functions of the World Trade Organization (WTO) and includes a diagram. Finally, it provides short summaries of several international regulatory bodies: the European Union, United Nations, Organization for Economic Cooperation and Development (OECD), and International Accounting Standards Committee (IASC).
The document discusses various aspects of global business and international companies. It defines terms like multinational, global, international and transnational companies. It also discusses the forces driving globalization like political, technological, market, cost and competitive forces. As a result of this rush for globalization, international business has seen explosive growth with the world stock of foreign direct investment increasing eleven-fold from 1980 to 2000. International business faces a different environment than domestic business due to various uncontrollable external forces.
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.
International Business Shivaji University SyllabusIshwar Bulbule
1. The document discusses the concept of international business, which involves business transactions across national borders, ranging from small export/import firms to large multinational corporations.
2. It describes how international businesses have grown significantly with globalization and liberalization since the 1970s, dominating the global economy.
3. International businesses must balance global and local operations and considerations, such as complying with local laws while profiting in home countries. They must also manage employment responsibly across different cultures and regulations.
The document discusses several key topics related to globalization and international business:
1. It defines globalization as the integration of world economies through reduced barriers to trade, capital, technology, and labor movement. This includes the globalization of markets and production.
2. Factors driving increased globalization include advances in technology, trade liberalization, economic reforms, growing consumerism, and global competition.
3. International business refers to commercial transactions between two or more countries, including exports, imports, and transportation. Firms engage in international business to access new markets and take advantage of factors like lower costs and skilled labor in other countries.
4. Barriers to international trade include cultural differences, political risks
The Role of Multinational Corporations a Case Study- NestleNikita Jangid
1. A multinational corporation (MNC) is a company that operates in multiple countries, with management headquartered in one country but conducting business in several other host countries.
2. MNCs engage in activities like exporting, importing, and manufacturing across different countries. They take a global perspective in decision-making.
3. Some of the earliest MNCs included the Knights Templar in the 12th century, the British East India Company in 1600, and the Dutch East India Company in 1602. Today there are over 40,000 MNCs operating globally.
The document discusses the triad economies of the United States, European Union, and Japan, which dominate international business and foreign direct investment. It outlines several reasons why multinational enterprises from triad nations invest abroad, such as increasing sales and profits by entering new markets, reducing costs through lower labor or material costs, and protecting domestic and foreign market share from competitors.
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.
This document provides information about international business and regulatory bodies. It defines international business and lists factors that affect it such as cultural differences, logistics, and different laws between countries. It then discusses the structure and functions of the World Trade Organization (WTO) and includes a diagram. Finally, it provides short summaries of several international regulatory bodies: the European Union, United Nations, Organization for Economic Cooperation and Development (OECD), and International Accounting Standards Committee (IASC).
The document discusses various aspects of global business and international companies. It defines terms like multinational, global, international and transnational companies. It also discusses the forces driving globalization like political, technological, market, cost and competitive forces. As a result of this rush for globalization, international business has seen explosive growth with the world stock of foreign direct investment increasing eleven-fold from 1980 to 2000. International business faces a different environment than domestic business due to various uncontrollable external forces.
The document discusses international business and its increasing importance in the globalization era. It defines international business and outlines how globalization has impacted the field. The document also discusses key topics in international business like competitive advantage, actors, functions, challenges, and the role of information systems in gaining a competitive edge. It concludes that no country can exist in isolation today and that international business has become more important for countries due to globalization.
This document provides an overview of the key topics covered in an international business textbook. It discusses the growth of international business and defines it as transactions carried out across borders. It also highlights the opportunities and challenges of international business. The textbook will examine the environment, trade, investment, markets, strategy, operations, and future of international business. It will analyze how globalization has increased international access and will take a comprehensive look at conducting business internationally.
Global Business Practice Assignment - The changing relationships between Tran...Amany Hamza
This paper aims to distil and critically analyse the changing relations between TNCs and nation-states and to what extent other multilateral institutions do influence these relations.
The document summarizes the topics of an international business presentation, including:
1) The importance of international business and how it benefits materials sourcing, global opportunities, and political relations.
2) How culture influences global business through consumer behavior, communication styles, and business practices.
3) How governments can help or hinder international business through various policies and political risks.
The term globalization derives from the word globalize, which refers to the emergence of an international network of economic systems. Globalisation refers to rapid increase in the share of economic activity taking place across national borders. It goes beyond the international trade includes goods and services, delivered &sold & movement of capital.
Globalization or globalisation is the trend of increasing interaction between people or companies on a worldwide scale due to advances in transportation and communication technology, normally beginning with the steamship and the telegraph in the early to mid-1800s. With increased interactions between nation-states and individuals came the growth of international trade, ideas, and culture. Globalization is primarily an economic process of integration that has social and cultural aspects, but conflicts and diplomacy are also large parts of the history of globalization.
Globalization refers to the increasing integration of economies around the world through trade and financial flows. It involves two core aspects: the globalization of markets, with separate national markets merging into one large global market, and the globalization of production, through companies sourcing goods and services internationally. As markets globalized, international institutions emerged to help regulate trade and promote agreements between nations. While globalization has connected economies, critics argue it has also negatively impacted jobs, wages, and national sovereignty in some countries.
Managing people in global market notes @ mba bec doms on hrBabasab Patil
This document provides an overview of managing people in global markets. It discusses:
- The evolution of thinking around human resource management, moving from universal best practices to contingency-based and contextual approaches.
- Key approaches to managing employees such as HRM, which integrates people management into business strategy, and various HRM models.
- Managing human resources globally, noting the need to accommodate both local context and the company's varied, complex environment across many countries.
- The influence of national culture and institutions on HRM policies and practices, and how these must be adapted for each local context while still serving company interests.
A multinational enterprise (MNE) is a company headquartered in one country that has operations in other countries. MNEs have grown substantially in size, with some having annual sales larger than the GDP of many countries. As MNEs have expanded internationally, they have faced pressures from interest groups to restrict their activities and ensure they behave responsibly across different legal and cultural environments.
This document is a student assignment submitted by Devesh Nidaria for their MBA semester 4 course. It includes responses to two questions. The first question asks about the differences between GATT and WTO, which the response highlights that GATT was an international agreement providing a framework for international trade while WTO succeeded GATT and is the current international organization governing global trade relations and agreements. The second question asks about entry strategies for firms entering foreign markets, and the response discusses various reasons firms may enter foreign markets and strategies they can use such as following customers abroad, exploiting market opportunities, and defensive strategies. It also briefly discusses segmentation of global firms.
Global enterprises, also known as multinational corporations (MNCs), are large companies that operate internationally through a network of branches across multiple countries. MNCs are characterized by their huge size, extensive product offerings, advanced technology, effective marketing strategies, and global operations. The top 200 MNCs control over a quarter of the world's economy due to their vast capital resources, latest technologies, and strong brand recognition that allow them to sell products worldwide. MNCs have a significant impact on the global economy and exercise massive influence through their international operations.
The document discusses various topics related to international business management including globalization, trade liberalization, GATT, WTO, and foreign direct investment (FDI). Regarding globalization, it provides an overview of aspects like trade, capital flows, movement of people, and spread of knowledge across borders. It then discusses the positives of trade liberalization such as increased growth, poverty reduction, and new jobs. The summary compares GATT and WTO, noting that WTO replaced GATT and has broader coverage of trade in goods, services, and intellectual property with stronger dispute settlement procedures. It also explains that MNCs pursue different business strategies and may opt for FDI to enter foreign markets in order to gain high anticipated profits.
This document provides an overview of international financial markets and concepts. It discusses multinational corporations conducting international financial management and reasons why firms engage in international business. It also summarizes the foreign exchange market, balance of payments, factors affecting international trade and capital flows, and various international financial markets including the Eurocurrency market, Eurocredit market, and Eurobond market. The document is presented as part of a course on international financial management.
Here are some key differences that could impact international business:
- Different languages require translation of documents, websites, etc. and interpreters for meetings. This adds complexity and cost.
- Variations in business etiquette like formality of address, importance of gifts/meals, negotiation style could lead to misunderstandings or offense if not aware of cultural norms.
- Holidays, work schedules, and expectations around work-life balance may not align between cultures, complicating coordination of projects, meetings, and timelines.
- Hierarchy and decision making processes could be very different - decisions may involve many more people or layers of approval than expected.
- Attitudes toward authority, risk, innovation,
Multinational corporations in the global economy finalClaro Ganac
This document discusses globalization and multinational corporations. It defines key terms like globalization, foreign direct investment, and multinational corporations. It also outlines some of the main motivations for foreign investment, including being market-seeking, resource-seeking, strategic asset-seeking, or efficiency-seeking. Both the positive and negative impacts of foreign direct investment are discussed, such as job creation but also potential issues like sweatshops or environmental problems.
The document summarizes international trade and its importance for developing countries. It discusses how international trade has increased living standards globally by integrating economies. Developing countries have benefited from trade liberalization through faster economic growth, poverty reduction, and increased manufacturing exports. Further trade liberalization could realize even more gains, especially for the poorest countries. Key regional trade organizations that help developing countries participate in international trade, like AFTA and APEC, are also summarized.
This document provides an overview of key concepts related to product decisions in marketing and international business. It discusses factors that influence whether products should be standardized globally or adapted locally, including cultural differences, usage conditions, and government regulations. Product design, production decisions, branding, packaging, and quality standards are also examined. The challenges developing countries face in competing internationally with manufactured goods are noted.
This document provides an overview of international business. It defines globalization as the increasing integration of economies, technologies, and cultures across borders. The main drivers of globalization are advances in communication and transportation technologies, liberalization of trade, and growing consumer demand for foreign goods. International business involves cross-border transactions and can be pursued for market seeking, economic, and strategic motives like growth and risk spreading. While globalization increases competition, it also opens new market opportunities. The document outlines various forms of international business and considerations for operating internationally.
Amy McDonnell is being recommended for a position by her current office manager. The office manager writes that Amy has worked in the church office for 6 years, taking on various tasks like answering phones, filing, creating documents and flyers, and data entry. She is described as having a pleasant personality and always being willing to take on new tasks confidently. The office manager is certain that Amy would be a great addition to any staff.
This document discusses using PHP and MySQL to create a campus library search engine mobile app. PHP will act as an interpreter between the Android app and remote MySQL database, allowing data to be stored, retrieved, updated and deleted efficiently from the database. XAMPP will be used to host the MySQL database and PHP scripts locally for testing, mimicking a live server. The app will allow users to register, log in, and retrieve book information from the MySQL database through interactions with PHP scripts from their Android device.
The document discusses international business and its increasing importance in the globalization era. It defines international business and outlines how globalization has impacted the field. The document also discusses key topics in international business like competitive advantage, actors, functions, challenges, and the role of information systems in gaining a competitive edge. It concludes that no country can exist in isolation today and that international business has become more important for countries due to globalization.
This document provides an overview of the key topics covered in an international business textbook. It discusses the growth of international business and defines it as transactions carried out across borders. It also highlights the opportunities and challenges of international business. The textbook will examine the environment, trade, investment, markets, strategy, operations, and future of international business. It will analyze how globalization has increased international access and will take a comprehensive look at conducting business internationally.
Global Business Practice Assignment - The changing relationships between Tran...Amany Hamza
This paper aims to distil and critically analyse the changing relations between TNCs and nation-states and to what extent other multilateral institutions do influence these relations.
The document summarizes the topics of an international business presentation, including:
1) The importance of international business and how it benefits materials sourcing, global opportunities, and political relations.
2) How culture influences global business through consumer behavior, communication styles, and business practices.
3) How governments can help or hinder international business through various policies and political risks.
The term globalization derives from the word globalize, which refers to the emergence of an international network of economic systems. Globalisation refers to rapid increase in the share of economic activity taking place across national borders. It goes beyond the international trade includes goods and services, delivered &sold & movement of capital.
Globalization or globalisation is the trend of increasing interaction between people or companies on a worldwide scale due to advances in transportation and communication technology, normally beginning with the steamship and the telegraph in the early to mid-1800s. With increased interactions between nation-states and individuals came the growth of international trade, ideas, and culture. Globalization is primarily an economic process of integration that has social and cultural aspects, but conflicts and diplomacy are also large parts of the history of globalization.
Globalization refers to the increasing integration of economies around the world through trade and financial flows. It involves two core aspects: the globalization of markets, with separate national markets merging into one large global market, and the globalization of production, through companies sourcing goods and services internationally. As markets globalized, international institutions emerged to help regulate trade and promote agreements between nations. While globalization has connected economies, critics argue it has also negatively impacted jobs, wages, and national sovereignty in some countries.
Managing people in global market notes @ mba bec doms on hrBabasab Patil
This document provides an overview of managing people in global markets. It discusses:
- The evolution of thinking around human resource management, moving from universal best practices to contingency-based and contextual approaches.
- Key approaches to managing employees such as HRM, which integrates people management into business strategy, and various HRM models.
- Managing human resources globally, noting the need to accommodate both local context and the company's varied, complex environment across many countries.
- The influence of national culture and institutions on HRM policies and practices, and how these must be adapted for each local context while still serving company interests.
A multinational enterprise (MNE) is a company headquartered in one country that has operations in other countries. MNEs have grown substantially in size, with some having annual sales larger than the GDP of many countries. As MNEs have expanded internationally, they have faced pressures from interest groups to restrict their activities and ensure they behave responsibly across different legal and cultural environments.
This document is a student assignment submitted by Devesh Nidaria for their MBA semester 4 course. It includes responses to two questions. The first question asks about the differences between GATT and WTO, which the response highlights that GATT was an international agreement providing a framework for international trade while WTO succeeded GATT and is the current international organization governing global trade relations and agreements. The second question asks about entry strategies for firms entering foreign markets, and the response discusses various reasons firms may enter foreign markets and strategies they can use such as following customers abroad, exploiting market opportunities, and defensive strategies. It also briefly discusses segmentation of global firms.
Global enterprises, also known as multinational corporations (MNCs), are large companies that operate internationally through a network of branches across multiple countries. MNCs are characterized by their huge size, extensive product offerings, advanced technology, effective marketing strategies, and global operations. The top 200 MNCs control over a quarter of the world's economy due to their vast capital resources, latest technologies, and strong brand recognition that allow them to sell products worldwide. MNCs have a significant impact on the global economy and exercise massive influence through their international operations.
The document discusses various topics related to international business management including globalization, trade liberalization, GATT, WTO, and foreign direct investment (FDI). Regarding globalization, it provides an overview of aspects like trade, capital flows, movement of people, and spread of knowledge across borders. It then discusses the positives of trade liberalization such as increased growth, poverty reduction, and new jobs. The summary compares GATT and WTO, noting that WTO replaced GATT and has broader coverage of trade in goods, services, and intellectual property with stronger dispute settlement procedures. It also explains that MNCs pursue different business strategies and may opt for FDI to enter foreign markets in order to gain high anticipated profits.
This document provides an overview of international financial markets and concepts. It discusses multinational corporations conducting international financial management and reasons why firms engage in international business. It also summarizes the foreign exchange market, balance of payments, factors affecting international trade and capital flows, and various international financial markets including the Eurocurrency market, Eurocredit market, and Eurobond market. The document is presented as part of a course on international financial management.
Here are some key differences that could impact international business:
- Different languages require translation of documents, websites, etc. and interpreters for meetings. This adds complexity and cost.
- Variations in business etiquette like formality of address, importance of gifts/meals, negotiation style could lead to misunderstandings or offense if not aware of cultural norms.
- Holidays, work schedules, and expectations around work-life balance may not align between cultures, complicating coordination of projects, meetings, and timelines.
- Hierarchy and decision making processes could be very different - decisions may involve many more people or layers of approval than expected.
- Attitudes toward authority, risk, innovation,
Multinational corporations in the global economy finalClaro Ganac
This document discusses globalization and multinational corporations. It defines key terms like globalization, foreign direct investment, and multinational corporations. It also outlines some of the main motivations for foreign investment, including being market-seeking, resource-seeking, strategic asset-seeking, or efficiency-seeking. Both the positive and negative impacts of foreign direct investment are discussed, such as job creation but also potential issues like sweatshops or environmental problems.
The document summarizes international trade and its importance for developing countries. It discusses how international trade has increased living standards globally by integrating economies. Developing countries have benefited from trade liberalization through faster economic growth, poverty reduction, and increased manufacturing exports. Further trade liberalization could realize even more gains, especially for the poorest countries. Key regional trade organizations that help developing countries participate in international trade, like AFTA and APEC, are also summarized.
This document provides an overview of key concepts related to product decisions in marketing and international business. It discusses factors that influence whether products should be standardized globally or adapted locally, including cultural differences, usage conditions, and government regulations. Product design, production decisions, branding, packaging, and quality standards are also examined. The challenges developing countries face in competing internationally with manufactured goods are noted.
This document provides an overview of international business. It defines globalization as the increasing integration of economies, technologies, and cultures across borders. The main drivers of globalization are advances in communication and transportation technologies, liberalization of trade, and growing consumer demand for foreign goods. International business involves cross-border transactions and can be pursued for market seeking, economic, and strategic motives like growth and risk spreading. While globalization increases competition, it also opens new market opportunities. The document outlines various forms of international business and considerations for operating internationally.
Amy McDonnell is being recommended for a position by her current office manager. The office manager writes that Amy has worked in the church office for 6 years, taking on various tasks like answering phones, filing, creating documents and flyers, and data entry. She is described as having a pleasant personality and always being willing to take on new tasks confidently. The office manager is certain that Amy would be a great addition to any staff.
This document discusses using PHP and MySQL to create a campus library search engine mobile app. PHP will act as an interpreter between the Android app and remote MySQL database, allowing data to be stored, retrieved, updated and deleted efficiently from the database. XAMPP will be used to host the MySQL database and PHP scripts locally for testing, mimicking a live server. The app will allow users to register, log in, and retrieve book information from the MySQL database through interactions with PHP scripts from their Android device.
O documento discute o conceito de qualidade do gasto público e formas de combater o desperdício no setor público. Aborda questões como a distinção entre gastos de custeio e investimento, além de perspectivas para promover a inovação permanente por meio de diálogo, conhecimento e solidariedade entre os órgãos governamentais. Defende uma visão mais complexa do combate ao desperdício que considere a formulação, aplicação e execução adequada das políticas públicas.
Sabritas es una compañía mexicana líder en el mercado de snacks. Aunque ha reducido su publicidad, sigue siendo uno de los principales vendedores de comida chatarra en México. Introdujo productos como papas fritas en 1943 y logró popularidad en 1993 con la introducción de tazos coleccionables. Actualmente ofrece una variedad de snacks como Doritos, Cheetos, Ruffles y más, y se ha asociado con Pepsico para diversificar su oferta de papas fritas con diferentes sabores.
This certificate recognizes Ahmed Bechir Ktari as a Certified SOLIDWORKS Professional in Mechanical Design. It was issued by Gian Paolo Bassi, CEO of SOLIDWORKS, and Dassault Systèmes on October 22, 2016 at the Professional level. The certificate includes Ahmed's unique certification number.
Capturing learning cycles with open badges / Utilisation of web-based technol...Jisc
This session will use a simple, image-based presentation format, with inputs from local peers and practitioners who will focus on how, with Jisc’s support, they are making the most of digital, and giving you an opportunity to learn from their best practice.
With contributions from:
Robert Stewart, workforce development adviser (learning technology), Scottish Social Services Council
Nadar Jamooz
Jason Miles-Campbell, head of Jisc Scotland
Jisc Connect more in Scotland, 16 June 2016
The VLIR-UOS programme for Institutional University Cooperation (IUC) is an interuniversity cooperation programme of Flemish universities, which started in 1997. Based on a system of programme funding provided by the Belgian government, the IUC programme is directed at a limited number of partner universities in the South. The IUC programme focuses on the institutional needs and priorities of the partner universities in the South and is, in principle, demand oriented, seeking to promote local ownership through the full involvement of the partner both in the design and in the implementation of the programme.
This report contains the findings, conclusions and recommendations of the final evaluation of the IUC programme at the Universidad Central “Marta Abreu” de Las Villas (UCLV) in Cuba, which began in 2003.
Download the report:
http://www.vliruos.be/media/3600970/final_evaluation_of_the_iuc_programme_with_uclv_cuba.pdf
This document discusses talent management at AXA. It identifies talent as key people with high potential, including successors. AXA uses various methods to identify and develop talent, such as internal contests, networking opportunities, and challenging projects. Talent is developed through a mix of opportunities including mentoring, networking, and exposure. The goal is to boost performance and shape the organization for the future through spotting and developing talent at AXA.
This document provides an overview of international business. It begins by defining international business as carrying out business activities across national borders, including trade of goods, services, capital, and foreign direct investment. It then discusses the objectives of international business such as sales expansion, resource acquisition, risk minimization, and diversification. Next, it compares international business to domestic business, noting greater complexities in international business from varying political, legal, and cultural environments across countries. It outlines several modes of entering international business, including direct/indirect exports, counter-trade, and contractual agreements. Finally, it lists advantages such as increased welfare, wider markets, reduced effects of business cycles, and opportunities provided to domestic firms.
BUSINESS MANAGEMENT CH1&2 END OF CHAPTER QUESTIONS.pdfAlison Tutors
This document is based on Business Management module from Mancosa. It has 2 chapters thus:
- The nature of international business management
-International Trade and Investment
MGMT 4710
INTERNATIONAL BUSINESS
CHAPTER 1. GLOBALIZATION
I. INTRODUCTION
As individuals and organizations have expanded their operations across wider geographical areas, global events and competition are affecting almost all firms—large or small. Currently, over 20 percent of world production is sold outside of its country of origin, restrictions on imports continue to decline, the foreign ownership of assets as a percent of world production continues to increase, and world trade continues to grow more rapidly than world production.
Globalization refers to the broadening set of interdependent relationships among people from different nations. International business involves all commercial transactions, including sales, investments, and transportation—private and governmental—between parties of two or more countries.
II. THE FORCES DRIVING GLOBALIZATION
Several factors contribute to the trend toward increased globalization:
1. Increase in and Expansion of Technology:
Vast improvements in transportation and communications technology—including the Internet—have significantly increased the effectiveness and efficiency of international business operations.
2. Liberalization of Cross-Border Trade and Resource Movement
Over time, most governments have been lowering restrictions on trade and foreign investments. It is believed that international competition makes domestic producers more efficient, and gives citizens greater consumer choices and lower prices.
3. Development of Services That Support International Business
Services provided by national and multinational institutions greatly facilitate the conduct and reduce the risks of doing business internationally.
4. Growing Consumer Pressures
Because of innovations in transportation and communications technology, consumers are well-informed about and often able to access foreign products. This has forced competitors to respond to the needs of consumers from all over the world
5.
Increased Global Competition
The pressures of increased foreign competition often persuade firms to expand internationally in order to gain access to foreign opportunities and to improve their overall operational flexibility and competitiveness.
6. Changing Political Situations
The transformation of the political and economic policies of Eastern Europe and East Asia (China and Vietnam in particular) has led to vast increases in trade between these countries and the rest of the world.
7. Expanded Cross-National Cooperation
Governments have increasingly entered into cross-national treaties and agreements in order to gain reciprocal advantages for their own firms, to jointly address problems that one country cannot solve alone, and to deal with areas of concern that lie outside the territory of all countries.
III.
PROBLEMS WITH GLOBALIZATION
Anti-globalization forces have protested both peacefully and violently as they press for legislation and other means to stop or slow the globalization process. The issu ...
E:\Notes Of M Com 2\Converted Pdf Notes\International Businessguesta42743
This document provides an overview of international business. It defines international business as commercial transactions between two countries. It discusses why companies engage in international business, including expanding sales, acquiring resources, diversifying sources of sales/supplies, and minimizing competitive risk. Recent growth in international business is due to expansion of technology, liberalization of trade barriers, development of supporting services, and increased global competition. There are various modes of international business, including merchandise exports/imports, service exports/imports, foreign direct investment, and portfolio investment.
International business involves economic transactions that cross national borders. It includes trade of goods and services between individuals, companies, and organizations located in different countries. The main types of international business are export/import trade and foreign direct investment through wholly owned subsidiaries and joint ventures. International business transactions aim to satisfy objectives of participating entities and involve exchange of goods, services, capital, technology and knowledge across borders. Conducting business internationally presents unique opportunities but also challenges due to differing political, economic, legal and cultural environments between countries.
The document provides an overview of international business, including definitions, objectives, importance, modes, and terms. It discusses how international business allows for the optimization of resources and diversification of risk. Key terms are defined, such as multinational companies, global companies, and transnational companies. International business is described as important for earning foreign exchange, utilizing resources efficiently, achieving corporate objectives, spreading risk, improving efficiency, and gaining government benefits. Common modes of international business include imports/exports, tourism/transportation, licensing/franchising, turnkey operations, management contracts, and direct/portfolio investment.
This document discusses various topics related to international business including:
- The evolution of international trade from exporting to nearby countries to establishing foreign facilities.
- Characteristics and factors that affect international business such as the need for accurate and timely information, market segmentation, and regional trade organizations.
- Advantages of international business like increased standards of living, risk reduction, and cultural exchange.
- Problems faced by international businesses like political instability, currency fluctuations, and trade barriers.
The document discusses foreign direct investment (FDI) among the major economic blocs called the Triad: the United States, European Union, and Japan. It notes that FDI and trade have increased dramatically among Triad nations over the last decade. The document also discusses FDI flows to other major economies like China and trends in various regions like developing Asia and North-East Asia. It provides statistics on the levels of FDI inflows and outflows among Triad and other nations.
The document discusses the growth and factors affecting the growth of multinational companies (MNCs). It provides a history of MNCs from early trading companies to modern corporations. Key points discussed include:
1) MNCs have expanded globally due to growing international markets and their superior financial resources, technology, and ability to exploit product life cycles across borders.
2) Developing countries often invite MNCs to boost industrialization through access to capital, skills, and markets not available locally.
3) Common reasons for the growth of MNCs include protecting proprietary knowledge, reputation, and avoiding trade barriers by directly investing in foreign markets.
Born to be global and the globalization processPehr-Johan .docxAASTHA76
Born to be global and the globalization process
Pehr-Johan Norbäck∗
Research Institute of Industrial Economics
Lars Persson
Research Institute of Industrial Economics and CEPR
February 13, 2013
Abstract
During the last decades we have witnessed a large number of entrepreneurial
firms that reach the world market at a fast pace (”born global firms”). Our analysis
suggests that the ongoing globalization process indeed implies that born to be global
firms would be more prominent in the world economy due to the reduction of the
cost of exploiting good business ideas globally. However, our analysis also suggests
that entrepreneurial firms have incentive to sell their business to incumbents. Indeed
we show that ”born to be sold global firms” can be even more frequent as a result
of trade liberalization, the international deregulation of the market for corporate
control and the strengthening of international cartel policy.
1. Introduction
In the last decades have we have witnessed a large number of firms that become inter-
national leaders in a short time. Prominent examples are Google and Facebook which
∗We have benefitted from useful comments from Markus Andersson and participants in seminars at
the ISGEP WORKSHOP 2012 in Stockholm, Universidade Católica Portuguesa, and Stockholm School
of Economics. Financial support from the Marianne and Marcus Wallenberg Foundation and the Swedish
Competition Authority is gratefully acknowledged. Email: [email protected]
have generated exports revenues of substantial amount at impressive speed. Moreover, we
observe inventions made by small entrepreneurs being acquired by incumbents which use
them to gain a strong competitive advantage in the world market. Example of this type
of process is Skype who first was acquired by Ebay and later by Microsoft. The success of
these so called ”born global firms” has spurred an interest in the determinants and welfare
effects of these types of firms. The purpose of this paper is to contribute to the generation
of such knowledge.
The starting point of the paper is that entrepreneurial firms with a global potential
face considerable problems when trying to fully exploit the potential value of an inven-
tion or business idea internationally. Complementary assets such as distribution networks,
marketing channels, financial resources, manufacturing know-how and brand names — i.e.
assets typically held by large established firms - are often needed, and we observe a signif-
icant amount of inter-firm technology transfers, ranging from joint ventures and licensing
to outright acquisitions of innovations.1 Thus to understand the phenomena of born to
be global firms we need to understand how the economic environment affects the incen-
tive of business development for sale to incumbents relative business development for own
export.2
1Granstrand and Sjölander (1990) present evidence from Sweden, and Hall (1990) evidence from the
US that firms ac ...
This document provides an overview of key concepts in international business including definitions of international business, globalization, drivers of globalization, and models of internationalization. It discusses the globalization of markets and production. It also examines changing demographics in the global economy including shifts in world GDP, trade, foreign direct investment, and the nature of multinational enterprises. Finally, it outlines some of the debates around the impacts of globalization.
Presentation for international marketingPravin Rathod
This document provides definitions and descriptions of different types of companies that operate internationally:
- Domestic companies operate solely within their home country, while global companies operate across national borders and see the world as a single market without borders.
- Multinational corporations (MNCs) have operations in multiple countries, international sales, and a multinational mix of managers and owners. They earn profits across different international markets.
- Transnational corporations (TNCs) are owned and managed from the United States but operate in different countries, viewing the world as a single market.
- Multidomestic companies adapt their operations in each host country and have relatively independent subsidiaries, while multinational enterprises (
This document provides an overview of globalization, including its key drivers like declining trade barriers and advances in technology. It discusses how globalization has led to integrated global markets and dispersed global production. It also examines the changing nature of multinational enterprises and the global economy. The document outlines some of the debates around globalization's impact on jobs, wages, the environment, and national sovereignty.
This document provides an overview of Chapter 1 from a textbook on international business. It discusses the forces driving globalization, including advances in technology, liberalized trade policies, and increased cooperation between countries. It also examines why companies engage in international business to expand sales, acquire resources, and minimize risk. While globalization offers economic benefits, it also faces criticisms such as threats to national sovereignty and growing income inequality. The chapter concludes by noting how international business differs from domestic business due to varying political, legal, cultural, economic and competitive environments around the world.
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What are two main concerns that MNCs should evaluate when doing business in Russia?
Solution
Multinational corporations have existed since the beginning of overseas trade. They have
remained a part of the business scene throughout history, entering their modern form in the 17th
and 18th centuries with the creation of large, European-based monopolistic concerns such as the
British East India Company during the age of colonization. Multinational concerns were viewed
at that time as agents of civilization and played a pivotal role in the commercial and industrial
development of Asia, South America, and Africa. By the end of the 19th century, advances in
communications had more closely linked world markets, and multinational corporations retained
their favorable image as instruments of improved global relations through commercial ties. The
existence of close international trading relations did not prevent the outbreak of two world wars
in the first half of the twentieth century, but an even more closely bound world economy
emerged in the aftermath of the period of conflict.
In more recent times, multinational corporations have grown in power and visibility, but have
come to be viewed more ambivalently by both governments and consumers worldwide. Indeed,
multinationals today are viewed with increased suspicion given their perceived lack of concern
for the economic well-being of particular geographic regions and the public impression that
multinationals are gaining power in relation to national government agencies, international trade
federations and organizations, and local, national, and international labor organizations.
Despite such concerns, multinational corporations appear poised to expand their power and
influence as barriers to international trade continue to be removed. Furthermore, the actual nature
and methods of multinationals are in large measure misunderstood by the public, and their long-
term influence is likely to be less sinister than imagined. Multinational corporations share many
common traits, including the methods they use to penetrate new markets, the manner in which
their overseas subsidiaries are tied to their headquarters operations, and their interaction with
national governmental agencies and national and international labor organizations.
WHAT IS A MULTINATIONAL
CORPORATION?
As the name implies, a multinational corporation is a business concern with operations in more
than one country. These operations outside the company\'s home country may be linked to the
parent by merger, operated as subsidiaries, or have considerable autonomy. Multinational
corporations are sometimes perceived as large, utilitarian enterprises with little or no regard for
the social and economic well-being of the countries in which they operate, but the reality of their
situation is more complicated.
There are over 40,000 multinational corporations currently operating in the global economy, in
addition to approximately 250,000 overseas affiliates .
1) The document discusses international financial management (IFM) and provides definitions and overviews of key concepts in IFM.
2) IFM involves managing financial operations of international activities and deals with issues like foreign exchange risk, political risk, and opportunities from operating globally.
3) The document outlines objectives of IFM like profit and wealth maximization, and discusses differences between IFM and traditional domestic financial management.
1) The document discusses international financial management (IFM) and provides an overview of key concepts in IFM including definitions, objectives, theories of international trade, and recent changes in the field.
2) IFM involves managing financial operations of international activities and deals with issues like foreign exchange risk, political risk, and opportunities from operating globally.
3) Recent changes in IFM include the emergence of the Eurodollar market, floating exchange rates, integration of financial markets, and the functional unification of different types of financial institutions.
This document provides an overview of international financial management (IFM). It defines IFM as managing the financial operations of international activities of an organization. Key aspects of IFM include foreign exchange risk, political risk, and expanded opportunity sets due to operating globally. IFM objectives include profit maximization and wealth maximization. Theories justifying international trade are also discussed, such as absolute advantage, comparative advantage, and factor proportion theory. International financial institutions, markets, and services are also covered.
Global business today global 8th edition hill test bank.docxrightmanforbloodline
Global business today global 8th edition hill test bank Global business today global 8th edition hill test bank Global business today global 8th edition hill test bank
Global business today global 8th edition hill test bank.docx
Intro to international business
1. MNG 412 INTERNATIONAL BUSINESS LECTURE NOTES I
LECTURER: HECTOR EDWARDS INTRODUCTION & DEFINITIONS
International business though a relatively new discipline have been in
practice for a number of years.
International business can be traced to even before Christ, by the
Phoenician and Greek merchants. In 1600 the British East Indian
Company established foreign branches through out Asia. At about the
same time a number of Dutch companies joined together to form the
Dutch East India Company, with branch offices in Asia. American
colonial traders began operating in a similar fashion in the 1700s. A
number of multinational companies existed in the late 1800s. One of the
first to own foreign production facilities, have worldwide distribution
networks, and market its products under global brands was Singer
Sewing Machine. Other firms, such as J&P Coats (United Kingdom) and
Ford, soon followed, and by 1914, at least 37 American companies had
production facilities in two or more overseas locations.
Interestingly, American business moving overseas caused consternation
among Europeans similar to that caused by Japanese investments in the
United States today.
Although American firms were by far the largest foreign investors,
European companies were also moving overseas business. Friedrich
Bayer purchased an interest in a New York plant in 1865, two years after
setting up his plant in Germany. Then, because of high import duties in
his overseas markets, he proceeded to establish plants in Russia (1876),
France (1882), and Belgium (1908). Bayer is now one of the four largest
chemical companies in the world ($29 billion in 1999 sales), has 350
companies with operations in 140 countries.
The definition used in international business for globalization is that of
economic globalization, which is the international integration of goods,
technology, labour, and capital: that is, firms implement global strategies
which link and coordinate their international activities on a worldwide
basis.
The United Nations and the government of most developing nations have
been using transnational instead of multinational for decades to
describe a firm doing business in more than one country. The United
Nations Conference on Trade and Development (UNCTAD) employs the
following definition: “Transnational corporations comprise parent
enterprises and their foreign affiliates: a parent enterprise is defined as
one that controls assets of another entity or entities in a country or
countries other than its home country, usually by owning a capital stake.
2. An equity capital stake of at least 10 percent is normally considered as a
threshold for the control of assets in this context.”
Businesspeople, though, usually define a transnational as a company
formed by a merger of two firms of approximately the same size that are
from two different countries.
International business is business whose activities are carried out
across national borders. This definition includes not only international
trade and foreign manufacturing but also the growing service industry in
areas such as transportation, tourism, advertising, construction,
retailing, wholesaling, and mass communication.
Foreign business denotes the domestic operations within a foreign
country. This term sometimes is used interchangeably with
international business by some writers.
Multidomestic company (MDC) is an organization with multicountry
affiliates, each of which formulates its own business strategy based on
perceived market differences.
Global Company (GC) is an organization that attempts to standardize
and integrate operations worldwide in all functional areas.
International Company (IC) refers to both global and multidomestic
companies.
Forces Driving International Firms To Globalize Their Operations.
There are five major kinds of drivers that are leading international firms
to the globalization of their operations.
(1) Political
(2) Technological
(3) Market
(4) Cost
(5) Competitive
1. Political
There is a trend toward the unification and socialization of the
global community. Preferential trading arrangements, such as the
North American Free Trade Agreement and the European Union,
that group several nations into a single market have presented
firms with significant marketing opportunities. Many have moved
swiftly to enter either through exporting or by producing in the
area.
3. Two other aspects of this trend are contributing to the globalization
of business operations:-
(a) the progressive reduction of barriers to trade and foreign
investment by most governments, which is hastening the
opening of new markets by international firms and are both
exporting to them and building production facilities in them,
and
(b) the privatization of much of the industry in formerly
communist nations and the opening of their economies to
global competition.
2. Technology
Advances in computer and communication technology are
permitting an increased flow of ideas and information across
borders, enabling customers to learn about foreign goods.
Global communications networks enable manufacturing
personnel to coordinate production and design functions
worldwide so that plants in many parts of the world may be
working on the same product.
The internet and network computing enable small companies to
compete globally because they make possible the rapid flow of
information regardless of the physical location of the buyer and
seller.
The ease of obtaining information and making transactions on
the Internet has started to have profound effect on many firms
and especially on business-to-business commerce. Whereas
companies formerly used faxes, telephones, or mail to complete
their transactions, they now use the cheaper and faster
Internet.
3. Markets
As companies globalize, they also become global customers. For
years, advertising agencies established offices in foreign
markets when their major clients entered those markets to
avoid having a competitor steal the accounts. It is quite
common for a global supplier to make global supply contracts
with a global customer.
Finding the home market saturated also sends companies into
foreign market, especially when the marketer realizes there is a
convergence of customer tastes and lifestyles brought about by
increasing tourist travel, satellite TV, and global branding.
4. 4. Cost
Economies of scale to reduce unit costs are always a
management goal. One means of achieving them is to globalize
product lines to reduce development, production, and inventory
costs. The company can also locate production in countries
where the costs of the factors of production are lower.
5. Competition
Competition continues to increase in intensity. New firms, many
from newly industrialized and developing countries have
entered world markets in automobiles and electronics, for
example. Another competitive driving force for globalization is
the fact that companies are defending their home markets from
competitors by entering the competitors’ home markets to
distract them (example: Kodak-Fuji)
Many firms that would not have entered a single country
because it lacked sufficient market size have established plants
in the comparatively larger trading groups European Union,
ASEAN, Mercosur). Its one thing to be shut out of Belgium, but
it’s another to be excluded from all Europe.
Explosive Growth
There has been explosive growth in both the size and the number of U.S.
and foreign international concerns.
Foreign Direct Investment
One variable commonly used to measure where and how fast
internationalization is taking place is the increase in total foreign direct
investment (FDI). For example, the world stock of FDI is estimated to
have risen from $519 billion in 1980 to $4.117 trillion in 1998, an
eightfold increase in just 18 years.
Direct investment: the purchase of sufficient stock in a firm to obtain
significant management control.
Foreign direct investment is sufficient investment to obtain significant
management control. In the United States, 10 percent is sufficient; in
other countries, it is considered a direct investment until a share of 20 or
25 percent is reached.
Preliminary 1999 results reveal that cross-border mergers and
acquisitions ($720 billion) continue to be the driving force behind the
growth of FDI flow ($827 billion in 1999). The United States, the nation
with the highest sales of companies in 1999, was replaced by the United
5. Kingdom as the largest acquirer of foreign companies. These two
countries also represent for each other the principal home country as
well as host country.
International Companies
In 1999, UNCTAD, the United Nations agency in charge of all matters
relating to FDI and international corporations, estimated that there were
over 60,000 companies with half a million foreign affiliates that
accounted for 25 percent of global output. They account for two-thirds of
world trade. UNCTAD reports, “The world’s largest 100 transnational
corporations, measured in terms of foreign assets, hold a dominant
position in the new international production system. They now account
for US$4.2 trillion in total sales and hold a stock of total assets in excess
of US$4.2 trillion. General Electric is the world’s largest TNC, closely
followed by Ford Motor Company and Royal Dutch Shell Group.
Beginning in the 1980s, there has been a marked liberalization of
government policies and attitudes towards foreign investment in both
developed and developing nations. Despite this change in attitude, there
are still critics of large global firms who cite such statistics as the
following to “prove” that host governments are powerless before them:
(1) In 1998, only 23 nations had a gross national product (GNP)
greater than the total annual sales of General Motors, the
world’s largest international company.
(2) Also in 1998, the total amount of money spent in Wal-Mart
worldwide was greater than the sum of the GNPs of over 100
nations.
Recent Developments
There are more Asian and European international firms than there are
American. It was not always this way. Until the 1960s American
multinationals clearly dominated world business, but then the situation
began to change. European firms began challenging American
multinationals, first in their home countries and then in third-country
markets dominated by US companies. By 1970s large European and
Japanese businesses were expanding their overseas production facilities
faster than were American firms.
Fortune’s list of the top 100 industrial firms in the world ranked
according to sales in 1980, 1996, and 1999
1980 1996 1999
45 United States 32 United States 35 United States
42 Western Europe 38 Western Europe 45 Western Europe
6. 8 Japan 23 Japan 20 Japan
1 South Korea 4 South Korea
1 Brazil 1 Brazil
1 Mexico 1 Mexico
1 Venezuela 1 Venezuela
1 Canada
100 100 100
Countries with the most companies on the Fortune Global 500 list
1999 1995 1989
United States 179 153 167
Japan 105 141 111
France 36 42 29
Germany 38 40 32
United Kingdom 39 32 43
International Business differs from domestic business in that a firm
operating across borders must deal with the forces of three kinds of
environment – domestic, foreign, and international. In contrast, a firm
whose business activities are carried out within the borders of one
country needs to be concerned essentially with only the domestic
environment. However, no domestic firm is entirely free from foreign or
international environmental forces because the possibility of having to
face competition from foreign imports or foreign competitors that set up
operations in its own market is always present.
Forces in the Environment
Environment as used here is the sum of all the forces surrounding and
influencing the life and development of the firm. The forces themselves
can be classified as external or internal.
Uncontrollable forces are external forces over which management has no
direct control, although it can exert an influence.
The external forces are commonly called uncontrollable forces and
consist of the following:-
1. Competitive - kinds and numbers of competitors, their locations,
and the activities.
2. Distributive – national and international agencies available for
distributing goods and services.
7. 3. Economic – variables (such as GNP, unit labour cost, and personal
consumption expenditure) that influence a firm’s ability to do
business.
4. Socioeconomic – characteristics and distribution of the human
population.
5. Financial – variables such as interest rates, inflation rates, and
taxation.
6. Legal – the many kinds of foreign and domestic laws by which
international firms must operate.
7. Physical – elements of nature such as topography, climate, and
natural resources.
8. Political – elements of nations’ political climates such as
nationalism, forms of government, and international organizations.
9. Sociocultural – elements of culture (such as attitudes, beliefs, and
opinions) important to international businesspeople.
10. Labour – composition, skills and attitudes of labour.
11. Technological – the technical skills and equipment that affects how
resources are converted to products
The elements over which management does have some control are the
internal forces, such as the factors of production (capital, raw materials,
and people) and the activities of the organization (personnel, finance,
production, and marketing. These are controllable forces management
must administer in order to adapt to changes in the uncontrollable
environmental variables.
The domestic environment is composed of all the uncontrollable forces
originating in the home country that surround and influence the life and
development of the firm. Obviously, these are forces with which
managers are most familiar. Being domestic forces does not preclude
them from affecting foreign operations, however.
The Foreign Environment
The forces in the foreign environment are the same as those in the
domestic environment except that they occur in foreign nations.
However, they operate differently for several reasons, including:-
8. 1. Different Force Value
Even though the kinds of forces in the two environments are
identical, their values often differ widely, and at times they are
completely opposed to each other.
2. Changes Difficult to Assess
Another problem with foreign forces is they are frequently difficult
to assess, especially their legal and political elements. A highly
nationalistic law may be passed to appease a section of the
population. To all outward appearances, a government may appear
to be against foreign investment, yet pragmatic leaders may
actually encourage it.
3. Forces Interrelated
Forces are often interrelated this in itself is not a novelty, because
the same situation confronts a domestic manager. Often different,
however, are the types and degrees of interaction that occur. For
instance, the combination of high-cost capital and an abundance
of unskilled labour in many developing countries may lead to the
use of a lower level of technology than would be employed in the
more industrialized nations. In other words, given a choice
between installing costly, specialized machinery needing few
workers and installing less expensive, general-purpose machinery
requiring a larger labour force, management will frequently choose
the latter when faced with high interest rates and a large pool of
available workers.
The International Environment
The international environment is the interactions –
1. between the domestic environmental forces and the foreign
environmental forces and
2. between the foreign environmental forces of two countries when
an affiliate in one country does business with customers in
another.
This agrees with the definition of international business: business
that involves the crossing of national borders.
International organizations whose actions affect the international
environment are also properly part of it. These organizations include:-
1. worldwide bodies (e.g. World Bank),
2. regional economic grouping of nations e.g. North American Free
Trade Agreement), and
3. organizations bound by industry agreements (e.g. Organization
of Petroleum Exporting Countries).
9. Decision Making More Complex
Those who work in the international environment find that decision
making is more complex than it is in a purely domestic environment.
Consider managers in a home office who must make decisions affecting
subsidiaries in just 10 different countries (many internationals are in 20
or more countries). They not only must take into account the domestic
forces, they must also evaluate the influence of 10 foreign national
environments. Instead of having to consider the effects of a single set of
10 forces, as do their domestic counterparts, they have to contend with
10 sets of forces, both individually and collectively, because there may be
some interaction.
Another common cause of the added complexity of foreign environments
is managers’ unfamiliarity with other cultures. To make matters worse,
they will ascribe to others their own preferences and reactions. Thus, the
foreign production manager, facing a backlog of orders, offers the
workers extra pay for overtime. When they fail to show up, the manager
is perplexed: “Back home they always want to earn more money.” This
manager has failed to understand that the workers prefer time off to
more money.
International Business Model
The external or uncontrollable forces in both the domestic and the
foreign environments surround the internal forces controlled by
management. The domestic environment of the international firm’s home
country is surrounded by as many sets of foreign environments as there
are countries in which the company does business.
A solid understanding of the business concepts and techniques employed
in the United States and other advanced industrial nations is a requisite
for success in international business. However, because transactions
take place across national borders, three environments – domestic,
foreign, and international – may be involved instead of just one.
In international business, the international manager has three choices in
what to do with a concept or a technique employed in domestic
operations:
1. transfer it intact
2. adapt it to local conditions, or
3. not use it overseas.
International managers who have discovered that there are differences in
the environmental forces are better prepared to decide which options to
follow. To be sure, no one can be an expert on all these forces for all
nations, but just knowing that differences may exist will cause people to
“work with their antennas extended.” In other words, when they enter
10. international business, they will know they must look out for important
variations in many of the forces that they take as given in the domestic
environment.