PPT for the subject of International Business prepared as per the syllabus of Osmania University-Hyderabad INDIA This is very much useful for the students of the MBA program across all universities throughout the world

1. NOTES - INTERNATIONAL BUSINESS
Dr. Syed Valiullah Bakhtiyari

2. Stages Influence
Social and Cultural
Technological
Economic
Political
• Domestic
• International
• Multinational
• Global
• Transnational
Domestic
Business
International
Business
Approaches
• Ethnocentric
• Polycentric
• Regiocentric
• Geocentric
Influence
Export
Direct Investment
Licensing
Franchising
Turnkey Projects
Joint Venture
Mergers and Acquisition
Goals
• Market Share
• High Profit
• Risk Avoidance
• Resource Acquisition
• Expand Business Capacities
Advantages
• Low Price
• Variety of Goods
• High Living Standards
• Economic Growth
• Competitive Advantages
Problems
• Political risk
• Foreign Debt
• Exchange Instability
• High Cost
INTERNATIONAL BUSINESS MODEL

3. INFLUENCES
 Accurate Information e.g. Bata
 Timely Information e.g. Coca Cola
 Size of the Business
 Market Segmentation
 Potentiality of Markets
 Inter-Country comparative study
 Host Country’s Monetary System
 National Security Policies e.g.: USA
 Cultural Factors e.g. : Fiji
 Language
 Nationalism and Business Policy e.g.: USA ‘s Be American, Buy
American Made

4. STAGES OF INTERNATIONALIZATION
 Domestic Company
 Limits operation, Vision, Mission to National political boundaries
 International Company
 Focus on domestic practices but extend wings to foreign countries (Mere
export-import)
 MultinationalCompany
 Different strategy for different market
 GlobalCompany
 Either produce in one country and market globally or produce globally and
market domestically
 TransnationalCompany
 Produces, markets, invests and operates across the world

5. APPROACHES TO INTL. BUSINESS
Ethnocentric
Domestic companies
view foreign markets as
an extension to
domestic markets
Polycentric
Companies establish
foreign subsidiaries and
empowers its
executives
Regiocentric
Subsidiaries consider
regional environment
for policy/strategy
formulation
Geocentric
Companies view the
entire world as a single
unit

6. MODES OF ENTRY
Indirect
Exporting Joint Ventures
DirectExporting
TurnKey
Projects
Mergers and Acquisition
Direct
Investment
Licensing
arrangements
with foreign
companies
Franchising
arrangements
with foreign
companies
Management
Contracts
Contract
Manufacturing

7. GOALS OF INTERNATIONAL BUSINESS
 Toachieve higher rates of profits
 Expanding production capacity
 Severe competition in home country
 Limited home market
 Political stability vs. instability
 Availability of technology and human resources
 High cost of transportation
 Nearness to raw material
 Liberalization and Globalization
 Toincrease market share
 Higher rate of economic growth
 Tariffs and import quotas

8. ADVANTAGES OF INTL BUSINESS
 High living standards
 Increased socio-economic welfare
 Wider market
 Reduced effects of business cycles
 Reduced risks
 Large-scale economies
 Potential Untapped markets

9. ADVANTAGES OF INTL BUSINESS
 Opportunity for challenge to domestic business
 Division of labour and specialization
 Economic growth of the world
 Optimum and proper utilization of world resources
 Cultural transformation
 Knitting the world into a traditional village

10. PROBLEMS OF INTL BUSINESS
 Political factors
 Huge foreign indebtedness
 Exchange instability
 Entry requirements
 Tariffs, quotas and trade barriers
 Corruption
 Bureaucratic practices of Govt
 Technological pirating
 Quality Maintenance

11. INTERNATIONAL BUSINESS
ENVIRONMENT
INTERNAL EXTERNAL
Organisational
Structure
R&D
HR
Marketing
Productio
n
Finance
External Micro
Environment
External Macro
Environment
Shareholders Creditors Bankers &
Financial
Institutions
Competitors Suppliers
Customers
Social
&Cultural
Factors
Technological
Factors
Economic Political
International
Factors
Organisational
Structure
R&D
HR
Marketing
Production Finance
External Micro
Environment
External Macro
Environment
Market &
Intermediary

12. Multinational corporation

13. Multinational corporation/company
 Multinational corporation/company is an organization doing business
in more than one country.
 It is integrated global enterprise which links global resources with
global markets at profit
 These companies have sales offices or manufacturing facilities in many
countries
 Mnc’s have worldwide involvement and a global perspective in its
management and decision making

14. Features of MNC’s
• MNC,s consider opportunities throughout the globe though they do the business
in the countries
• MNC,s invest considerable portion of their assets internationally
• MNC,s engage in international production and operate plants in a number of
countries
• MNC,s take managerial decisions based on a global perspective.
• The international operations are integrated into the cooperation’s overall business

15. WHY COMPANIES BECOME MNCS
 Protection
 Tap global
 Increase market share
 Reduce cost
 Overcome tariffs
 Technological advantages

16. Growth of MNC
 Expansion of market territory
 Market superiorities
 Financial superiorities
 Technological superiorities
 Product innovation

17. Advantages and Disadvantages of MNC
 Creates the demand for the home country
products
 Boost up the industrial activity of the home
country
 Create unemployment for home country people
 Earns foreign exchange for the home country and
contributes for the balance of payment
 Get the benefits of foreign culture
 Produces the product required by the domestic
consumer in foreign countries with foreign
resources
 Saves the domestic country from environmental
pollution
 Get the customer for the country’s out dated
technology
countries ad cause
 Transfer capital to other
unfavorable balance of payment
 May not create employment opportunities to domestic
people by following geocentric approaches or
outsourcing business operations in various counties
like USA software companies outsourcing business
operation in India
 May neglect the industrial development of the home
country as the transnational companies follow the
secular approaches
 May cause erosion of the domestic culture
 May exploit the natural resources resulting in excessive
exploitation of naturalresources

18. UNIT II

19. GLOBALIZATION
interdependence of countries worldwide
 IMF defines globalization as, “the growing
through
economic
increasing
volume and variety of cross border transactions in goods and
services and of international capital flows and also through the
more rapid and widespread diffusion of technology”

20. COMPONENTS OF GLOBALISATION
Globalization of
Markets
Globalization of
Technology
Globalization of
Production
Globalization of
Investment

21. REASONS FOR GLOBALIZATION OF
MARKETS
 Large scale industrialization enabled massproduction
 Risk reduction bydiversification
 Increase profits and achievegoals
 Adverse business environment in homecountry
 Demand for their products in foreignmarkets
 Failure of domestic companies to cater the needs of customers

22. GLOBALIZATION
ADVANTAGES
 Free flow of capital, technology
 Industrialization
 Production facilities throughout the
world
 Increase in productionand
consumption
 Lower prices and highquality
 Jobs and Incomes
 Higher standard of living
 Balanced Human development
 Welfare and prosperity
DISADVANTAGES
 Kills domestic business
 Exploits human resource
 Unemployment and
underemployment
 Widening gap between rich andpoor
 Transfer of naturalresources
 National sovereignty at stake
 Commercial and political
colonialism

23. DRIVERS OF GLOBALIZATION
OF PRODUCTION
 Availability of high quality raw materials and components in other
countries
 Availability of skilled human resources at low cost
 Availability of inputs at low cost in foreign countries
 Liberal lab our laws in the foreign countries
 To reduce the cost of transportation and easy logistics management
 T
o design and produce the product as per the varying tastes of
customers in foreign countries

24. GATT
 The General Agreement on Tariffs and Trade (GATT) was
originally created by the Bretton Woods Conference as
part of a larger plan for economic recovery after World
War II.
 The GATT’s main purpose was to reduce barriers to
international trade.
 This was achieved through the reduction of tariff
barriers, quantitative restrictions and subsidies on trade
through a series of different agreements.
 The GATT was an agreement, not an organization.
 Originally, the GATT was supposed to become a full
international organization like the World Bank or IMF
called the International Trade Organization
 The agreement was not ratified, so the GATT remained
simply an agreement.
 The functions of the GATT have been replaced by the
World Trade Organization.

25.  GATT trade rounds
 Geneva Round – 1947 The first round’s duration was 7 months. 23
countries took part in the round. The main focus was Tariffs Signing
of GATT, 45,000 tariff concessions affecting $10 billion of trade.
 Annecy Round – 1949 The second round took place in 1949 in
Annecy, France. 13 countries took part in the round. The main focus
of the talks was more tariff reductions.
 Torquay Round – 1951 The third round occurred in Torquay,
England in 1950. 38 countries took part in the round. 8,700 tariff
concessions were made totaling the remaining amount of tariffs to
¾ of the tariffs which were in effect in 1948.

26.  Geneva Round - 1955-1956 The fourth round returned to Geneva
in 1955 and lasted until May 1956. Twenty-six countries took part in
the round. $2.5 billion in tariffs were eliminated or reduced.
 Dillon Round - 1960-1962 The fifth round occurred once more in
Geneva and lasted from 1960-1962. The talks were named after
U.S. Treasury Secretary and former Under Secretary of State,
Douglas Dillion, who first proposed the talks. 26 countries took part
in the round. Along with reducing over $4.9 billion in tariffs, it also
yielded discussion relating to the creation of the European Economic
Community (EEC).

27.  Kennedy - 1964 The sixth round’s duration was 37 months. 62
countries took part in the round and the main focus was Tariffs,
Anti-dumping. Its achievement was Tariff concessions worth $40
billion of world trade
 Tokyo Round - 1973-1979 Reduced tariffs and established new
regulations aimed at controlling the proliferation of non-tariff
barriers and voluntary export restrictions. 102 countries took part in
the round. Concessions were made on $190 billion worth.

28.  Uruguay Round - 1986-1994 The Uruguay Round began in 1986.
It was the most ambitious round to date, hoping to expand the
competence of the GATT to important new areas such as service,
capital, intellectual property, textiles, and agriculture. 123 countries
took part in the round. The Uruguay Round was also the first set of
multilateral trade negotiations in which developing countries had
played an active role

29. OBJECTIVES OF GATT
 To raise standard of living
 To ensure full employment and a large and steadily growing volume
of real income and effective demand
 To develop the full use of the resource of the world
 To expand production and international trade

30. ACTIVITIES OF GATT
 Tariff bargaining
 Bargaining on non- tariff trade barriers
 Elimination of quantum restriction
 Settlement of disputes between contracting parties

31. WORLD TRADE ORGANIZATION
 WTO was established on January 1, 1995
 WTO is the embodiment of the Uruguay Round results and the
successor to GATT
 Government became member of the WTO on its first day
 As of December 2000 there are 142 members of the WTO and 34
countries have an observer status
 28 members are there in waiting list

32. Functions of WTO
 Administering and implementing the multilateral and plurilateral
trade agreements which together make up WTO
 Acting as a forum for multilateral trade negotiation
 Seeking to resolve trade disputes
 Overseeing national trade policies
 Cooperating with other international institution involved in global
policy making

33. Ministerial
conference
General council
Disputes
settlement body
council
Director
general
trade policy review
body committees
Council
For
Trade
In
goods
Council
For
Trade
In
services
Council
For trade
Related
Aspects of
Intellectua
l
rights
Secretaria
t
Of the
WTO
Committee
On trade
And
developme
nt
Committe
e
On
Balance
Of
Payment
restrcitio
n
Committe
e
On‘
Budget
Finance
And
admin
Structure of WTO

34.  Ministerial conference: ministerial conference is the highest
hierarchical level in the organizational structure.
 All the member countries of WTO are the representative of the ministerial
conference
 The ministerial conference has the authority to make decision on all
matters relating to multilateral trade agreements
 General council: General council is the executives body of the WTO
 General council reports its decision and activities to the ministerial
conference
 There are forms of general council
Dispute settlement body
 Trade policy review body

35.  Council: The third level in the hierarchy is council
 Council for trade in goods: This council supervise the implementation and
functioning of all agreement relating to trade in goods
 Council for trade in service: This council overseas the implementation of all the
agreement relating to trade in services
 Council for trade related aspects of intellectual property rights: This council
overseas the implementation
 Committees: Various councils specified earlier, constitute committee
for administering the arrangement
 Committees on trade and development: This committee is concerned with the
issues concerning developing countries and particularly least developed countries
 Committee on balance of payments: some WTO members countries resort to trade
restrictive measures with a view to cope with their balance of paymentsproblems
 Committee on budget, finance and admin: this committee deals with the issues
relating to the budget, finance and administration of WTO

36.  Management bodies: plurilateral agreement of the WTO have their
management bodies. These management bodies report to the
general council
WTO provides a more powerful mechanism to solve disputes over trade
among the members countries

37. Difference between GATT and WTO
 It is a set of rules and multilateral
agreement
 It was designed with an attempt to
establish International Trade
Organization
 It was applied on a provisional basis
 Its rules are applicable to trade in
merchandise goods
 GATT was originally a multilateral
instrument, but plurilateral agreement
were added at a later stage
 Its disputes settlement system was
not faster and automatic
its own
 It is a permanent institution
 It is established to serve
purpose
 Its activities are full and permanent
 Its rules are applicable to trade in
merchandise and trade in services and
trade in related aspects of intellectual
property
 Its agreements are almost multilateral
 Its disputes settlement systems is fast
and automatic

38. UNIT IV

39. KINDS OF ECONOMIC INTEGRATION
 Free Trade Area: Group of countries agreeing to abolish all trade restrictions
 Customs Union: (i) Member countries abolish all restrictions (ii) They adopt a
uniform commercial policy of barriers and restrictions
 Common Market: (i) Member countries abolish all restrictions (ii) They adopt a
uniform commercial policy of barriers and restrictions (iii) They allow free
movement of human resource and capital
 Economic Union: i) Member countries abolish all restrictions (ii) They adopt a
uniform commercial policy of barriers and restrictions (iii) They allow free
movement of human resource and capital (iv)Achieve uniformity in monetary and
fiscal policy

40. EUROPEAN UNION
Evolutionary stages
 European coal and steel community
 European common market/European economic community
 European economic union

41.  Activities of EU
• Establishment/formulation of a common custom tariff and common commercial policy
with regard to non-member countries
 Abolition of all obstacles for movement of persons, services and capital among member
countries.
 Common policy in agriculture and transport
 Programmes to coordinate the economic policies and disequilibrium in balance of
payments of member countries.
 Establishment of European Social fund
 Establishment of European Investment Bank.

42. ORGANISATION OF EU
 European council is the administrative body of the EU.
 Each member country is represented by a minister in this council
 Each member country holds presidency for 6 months on rotation basis.
 The committee of permanent representatives called ‘Corper’ acts as secretariat of
the council.

43. ORGANISATION OF EU
Court of Justice
(Adjudicates
Disputes)
•Agriculture
•Social Security
•Completion of
Policy
Court of
Auditors
•EEC Budget
•Monitoring
expenditure
European
Commission
(Commissioners
andAssistants)
European Parliament
•Consultants
•Approvals
Advisory Committees
•Economic and social
•Monetary
•Coal & Steel Industry

44. NORTH AMERICAN FREE TRADE
AGREEMENT-NAFTA
 NAFTA came into being on January 1,1994.
 USA, Canada and Mexico together formed NAFTA
 Initial agreement was between USA and Canada in 1989which
was later extended to Mexico.

45. OBJECTIVES OF NAFTA
 To create new business opportunities particularly in Mexico
 Enhance competitive advantage of companies operating in USA, Canada and
Mexico.
 Reduce price of products and services
 Enhance industrial development
 To provide stable and predictable environment for investors
 To develop industries in Mexico, thereby reducing migration from Mexico to USA
 Improve and consolidate political relationship among member countries

46. MEASURES AS PER AGREEMENTOF
NAFTA
 Opening up of government procurement markets in member
countries
 Protection of IP rights of NAFTAmembers
 Simplification and harmonization of product standards in
member countries
 Free flow of employees and business people among member
countries
 Pollution control among USA-Mexico border

47. ASEAN-ASSOCIATION OF SOUTH EAST ASIAN
 A group of 6 membe
N
rsAT
viI
zOs
N
in
S
gapore, Brunei, Malaysia,
Philippines, Thailand and Indonesia in 1992 to establish a
Common Effective Preferential Tariffs(CEPT) plan which
resulted in creation of ASEAN.
 Organisation structure includes ASEAN economic ministers,
ASEAN foreign ministers, ASEAN secretariat, Fixed
committees and rotating committees.

48. INDIA ANDASEAN
 India became a sectoral dialogue partner of ASEAN in 1992. The
sectors were trade, investment, tourism and science and technology
 India became a full dialogue partner of ASEAN during fifth ASEAN
summit in Bangkok in 1995

49. AFTA-Asian Free TradeArea
 AFTAwas formed in September 1994.
 AFTAwas formed to develop ASEANtrade
OBJECTIVES
 To encourage inflow of foreign investment into this region
 To establish free trade area in the member countries
 To reduce tariff of the products produced in ASEAN countries

50. SAARC
 SAARC stands for South Asian Association for Regional Co-operation
 India, Bangladesh, Bhutan, Pakistan, the Maldives, Nepal and Sri
Lanka established SAARC on Dec 8, 1985.
 Afghanistan joined SAARC in April 2007.

51. OBJECTIVES OF SAARC
 To improve the quality of life and welfare of people
 To develop region economically, socially, culturally
 To provide opportunity for the people to live in dignity
 To enhance self-reliance of members
 To extend co-operation to other trade blocks
 To enhance co-operation with developing countries
 To have unity among member countries

52. ORGANIZATION STRUCTURE
 The council of SAARC is the highest policy making body
 The council is represented by the heads of the Government of the member
countries
 The Council meets once in two years
 This council is assisted by council of ministers
 The council of ministers is represented by foreign ministers of member
countries
 The council of ministers are assisted by standing committee which consists
of foreign secretaries of member countries

53. STANDING COMMITTEE
 Monitoring and co-ordinating the programmes
 Determining inter-sectoral priorities
 Mobilizing co-operation within and outside the region
 Standing committee is assisted by Programming
committee

54. PROGRAMMING COMMITTEE
 This includes the senior officials of the member countries. The
functions are
 Scrutinising budget of the secretariat
 Finalising annual schedule of the secretariat
 Carrying out the activities assigned by the standing committee
 Analysing reports of technical committees and SAARC
regional centres and submitting them to the standing committee.

55. TECHNICAL COMMITTEE
 This consists of representative of all member countries
FUNCTIONS
 Formulating projects and programmes in their respective
areas
 Monitoring and implementingprojects
 Submitting the reports to the standing committee through
the program committee

56. TECHNICAL COMMITTEE
 The technical committees of SAARC includes
 Agriculture
 Environment
 Rural Development
 Tourism and transport
 Communications
 Health and population activity
 Science and technology

57.  The Secretarial work is done by SAARC secretariat
located in Nepal.
 The secretary-General is the chief of the secretariat
 Ahmed Salim of Maldives is the oresent Secretary
General of SAARC

58. EXPORT PROCEDURES
Preliminaries
Offer and
Receipt of
confirmed
orders
Production
and clearance
of the
products for
exports
Shipment
Negotiation
of Documents
and
realization of
export
proceeds
Obtaining
various
export
incentives

59. PROFORMA INVOICE
Proforma Invoice includes the following:
 Name of the buyer: Complete details ofbuyer/importer
 Description of goods: Technical, chemical and physical features of
goods.
 Price: Unit wise and total price of the goods in internationally
accepted currencies or mutually agreed currencies.
 The forms used should be f.o.b., c and c.i.f ., f (Cost, Insurance and
Freight (CIF) vs. Free On Board (FOB)) or internationally accepted
form.

60. PROFORMA INVOICE
Payment Terms: Letter of credit, bill of exchange should be included.
Other obligations:
 Post sales service to be provided
 Providing spare parts
 Warranty/guarantee for equipment/technology
Confirmed Order: The buyer sends the confirmed order to the exporter by signing
the duplicate copy of the invoice which becomes the confirmed order

61. PROFORMA INVOICE
Export License: The exporter has to obtain the export license
from the authorities concerned if the items to be exported
requires license.
Procuring Finance: If the exporter does not have the required
finance then he should arrange it from various sources.

62. CUSTOMS CLEARANCE
 The exporter has to get custom clearance of the goods before they are
loaded on the ship. The list of documents to be furnished includes the
following:
 Proforma Invoice
 GR-I Form (Duplicate)
 AR-4 Form (Duplicate)
 Export License
 Letter of credit covering export order, export contract or order in
original
 Certificate of Inspection

63. CUSTOMS CLEARANCE
Form of Declaration (in duplicate)
Shipping bill (Five copies)
Quality control Inspection certificate(If required)
Original contract wherever available
Packing list
Letter of registration certificate (If applicable)

64. CUSTOMS CLEARANCE
 Export License: The exporter has to obtain the export license
from the authorities concerned if the items to be exported
requires license.
 Letter of Credit:A letter from a bank guaranteeing that a
buyer's payment to a seller will be received on time and for the
correct amount. In the event that the buyer is unable to make
payment on the purchase, the bank will be required to cover
the full or remaining amount of the purchase.

65. CUSTOMS CLEARANCE
 Certificate of Inspection: Certifying or non certifying about the
fulfillment of National export standards
 Form of Declaration:
Customs form completed and submitted by an exporter at the port
of export
(1) to
and
provide
value
information
of
on
exports
amount,
to
nature,
the
statistical office for compilation of foreign trade data,

66. CUSTOMS CLEARANCE
 Shipping bill: The bill contains thefollowing
 Name of theexporter
 Description and Quantity of goods
 Value of goods
 Number of packages and markings onthem
 Amount of drawbackclaimed
 Port ofDestination
V
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ile B
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67. NEGOTIATION OF DOCUMENTS AND
REALIZATION OF EXPORT PROCEEDS
 Government of India appointed a committee to recommend on the documentation in
export. Standardized documents suggested are as follows and the system is called as
‘Aligned Documentation System’
Invoice
Exchange control Declaration (GR Form)
Shipping Bill
Bill of Lading

68. Electronic business, or e-business, is the application of
information and communication technologies ICT in support of all
the activities of business. Commerce constitutes the exchange of
products and services between businesses, groups and individuals
and can be seen as one of the essential activities of any business.
Electronic commerce focuses on the use of ICT to enable the
external activities and relationships of the business with
individuals, groups and other businesses. The term "e-business"
was coined by IBM's marketing and Internet teams in 1996
E-business categories:
business-to-business (B2B) , business-to-consumer (B2C)
business-to-employee (B2E), business-to-government (B2G)
government-to-business(G2B) , government-to-government (G2G)
government-to-citizen (G2C) , consumer-to-consumer (C2C)
consumer-to-business (C2B)

69. E-business models
E-shops, E-commerce, E-procurement, E-malls
E-collaboration, E-auctions, Virtual Communities
Benefits of e- business
Increase revenue; Expand Client case, Reach niche market segments;
Lower operating costs; Better customer service, Enhancing Company image.
Alternative E-Business strategies
Basically the E- Business strategies are for growing the business, improving the
profits, in order to obtain the extended objective of e-business, the alternative
strategies shell be adopted which are as follows

70. E-Advertising - revenue generated from web site hits
E-retailing -revenue derived from direct Internet sales
E-Channel - revenue produced from maintenance of current
channel integrity
E-Affiliate - revenue made from paid marketing alliances
E-Franchise - revenue created from authorized agents
E-Subscription - revenue derived from payment for content
access

71. Other- Alternative e-business
strategies
Enterprise resource planning (ERP)
Electronic data interchange (EDI
e CRM or electronic customer relationship management
Automated online
Business relationship management
Customer intelligence (CI
Business intelligence (BI)
Database marketing
Partner relationship management (PRM)
Sales intelligence (SI

72. Documents for International
trade
Official Documents :Official documents are documents required for
the purpose of official (regulatory) authorization to export
Customs or Export
A certificate of origin
A health certificate
Commercial Documents
Commercial invoice , Packing list , Beneficiary certificate , Verification
documents
Transport Documents : Bill of lading, Waybill , Consignment note
Insurance Documents :Insurance certificate, and Insurance-policy

73. Global E-Marketing
:Global e -Marketing is the use of internet as a media to market and
promote your business globally. In today's world the most cost effective
method of global business promotion is e Marketing.
Advantages
Global Reach, Easy Marketing , economical, keep updated information,
more appealing to the customers
Challenges in E-Marketing
Understanding customer evolution
Charting changing technology
Weathering the storm that is understand the market environment
Integrating offline & online activities
Identifying key levers of competitive advantage

74. V-Unit
Global strategic planning is a process adopted by organizations that operate
internationally in order to formulate an effective global strategy. Global
Strategic Planning is a process of evaluating the internal and external
environment by multinational organizations, and make decisions about how
they will achieve their long-term and short-term objectives.
Global strategic planning process involves these steps:
Analyzing external environment
Analyzing internal environment
Defining the business and its mission statements
Setting corporate objectives
Quantifying goals
Formulating strategies
Making tactical plans

75. Methods of taking strategy
in Global strategic planning
Top Down planning
In this the decision will be taken at the top management level and the same
decision will moves on to all the levels of authorities in the organization
Bottom up planning
In this strategy the decision would start from the bottom or from the lower
management of the company and this will be communicated upward in the
organization
Iterative planning
Adopting either top down or bottom up method continuously until any
issue in the department is finalized or recon ciliated, this means in case
there is a conflict on any issue prevailing in the organization then until the
issue is settled down the method of planning will not be changed

76. Implementing Global
strategy
Build an Organization
Marshal resources (resources used),
Institute policies,
Pursue best practices and continuous improvement ,
Information and operating systems
Tying rewards to strategy and goals

77. Intercultural communication

78. Improving Intercultural
Communication
Avoid using slang and idioms, choosing words that will convey only the
most specific denotative meaning;
listen carefully and, if in doubt, ask for confirmation of understanding
(particularly important if local accents and pronunciation are a problem)
Recognize that accenting and intonation can cause meaning to vary
significantly; and
Respect the local communication formalities and styles, and watch for any
changes in body language.
Investigate their culture's perception of your culture by reading literature
about your culture through their eyes before entering into communication
with them.

79. Inter cultural Human
resource management
The human resources management in global perspective involves many
functions and the responsibility of HR becomes more prominent in global
scenario, the intercultural human resources management that is international
human resources management is supposed to perform these activities,
mentioned below.
Developing international market based staffing plans, Dealing with
employees in different parts of the world
Planning a global strategy which is acceptable implementable throughout the
world
Developing international leadership , Merging or integrating with other
companies across borders

80. Developing multicultural teams , Creating a global
vision/mission for international integration
Implementing transnational management matrices , Dealing
with cross-cultural conflict
Conducting major international negotiations , Implementing
major cultural change