1. Group 5202
Perova Yana|Zvonova Sofia|Dangi Amaliya
Fefelova Marina| Gosteva Alexandra
THE FIRM AND
INTERNATIONAL BUSINESS
ENVIRONMENT
PLEKHANOV RUSSIAN UNIVERSITY OF
ECONOMICS
INTERNATIONAL BUSINESS SCHOOL
ECONOMICS OF THE FIRM
PROFESSOR: DOKUKINA A.A

2. TABLE OF CONTENTS
1. Introduction
2. The internationalization of business
2.1 Factors that have stimulated increased internationalization
3. Internationalization strategies
3.1 Exporting
3.2 International licensing and franchising
3.3 International alliances and joint ventures
3.4 Foreign ‘direct’ investment
4. Single markets and trading blocs
4.1 The EU
4.2 North American Free Trade Area and other trading blocs
4.3 The World Trade Organization (WTO) and GATT
5. Conclusion
6. Bibliography

3. INTRODUCTION

4. THE INTERNATIONALIZATION
OF BUSINESS
Factors that have stimulated increased
internationalization :
- The communications 'revolution’
- Improved transport and related infrastructure
- Market homogenization

5. INTERNATIONALIZATION
STRATEGIES
The major entry strategies are:
• exporting
• international franchising
• international licensing
• international (strategic) alliances
• foreign direct investment (FDI)

6. • Ex-works contracts
• Free-on-rail (FOR) contracts
• Free-alongside ship (FAS) contracts
• Free-on-board (FOB) contracts
• Ex-ship contracts
• Cost, insurance, freight (GIF) contracts
EXPORT CONTRACTS:

7. SINGLE MARKETS AND TRADING BLOCS
THE EU
NORTH AMERICAN FREE TRADE AREA AND OTHER
TRADING BLOCS
THE WORLD TRADE ORGANIZATION (WHO) AND GATT

8. International business is a necessity in
today’s world.
The gains for greater awareness and
knowledge of international business fare
immense for nations, multi-national
enterprises, trading companies, exporters
and even individuals. Understanding
international business environment
requires greater research and
information. The fulfillment of this
research could happen with greater
understanding of the framework for
analyzing the international business
environment.
CONCLUSION

9.  Ohmae, К. (1992). The Borderless Wor. London: Penguin.
 Piggott,J. and Cook, М. ("2001). International Business Economics: A
European Perspective, 2nd edn. London: Addison-Wesley-Longman.
 Sloman, J. (2003). Economics, 5th edn. London: FT Prentice Hall.
BIBLIOGRAPHY

10. QUESTIONS

11. 1) What are 3 factors which stimulate
increased internationalization?
 The communications 'revolution’
 Improved transport and related infrastructure
 Market homogenization
2) What are the major entry strategies?
 • exporting
 • international franchising
 • international licensing
 • international (strategic)
alliances
 • foreign direct investment
(FDI)
3) Types of export contracts…
 Ex-works contracts
 Free-on-rail (FOR) contracts
 Free-alongside ship (FAS) contracts
 Free-on-board (FOB) contracts
 Ex-ship contracts
 Cost, insurance, freight (GIF)
contracts
4) What is the
difference between
free-alongside and
free-on-board?
Free-alongside ship (FAS) contracts specify that the
goods shall change hands once the exporter has delivered
them to the docks and places them ready for loading onto
the ship. The importer (buyer) assumes responsibility for
the goods from the transfer of the goods onto the ship to
the destination.
Free-on-board (FOB) contracts go a few meters further
than FAS. The exporter assumes ownership of the goods
up to and including the placement of the goods on
the outgoing ship.
5) Which companies lend their
products to a globally homogeneous
demand?
Coca Cola, Big Mac, Microsoft
Windows, FoxPro, WordPerfect,
Zantac, Prozac, Levi jeans and French
ladies' fashions, Chanel and Yves
Saint-Laurent, Marlboro, Heineken,
Nestle,…………….