Stages of development of IB

1. EVOLUTION OF INTERNATIONAL
BUSINESS

2. EVOLUTION OF INTERNATIONAL BUSINESS
INTRODUCTION:
Most of you have the experience of browsing
internet
products
and visiting different websites, knowing the
and services offered by various companies
across the globe.
International Business focuses on global resources,
opportunities to buy / sell world wide.

3. EVOLUTION OF INTERNATIONAL BUSINESS
 First phase of globalization in 1870
 Ended with World war I (1919) driven by
Industrial Revolution in UK, Germany and USA
 Sharp increase in trade due to the import of raw
materials and exporting finished goods to their
overseas.

4. EVOLUTION OF INTERNATIONAL BUSINESS
 Prolonged recession
before world war II
 GATT by 23 countries in 1947 aiming at
the establishment of the International
Trade Organization

5. EVOLUTION OF INTERNATIONAL BUSINESS
 GATT: General Agreement on Trade and Tariffs.
 GATT provided a frame work for a series of
“rounds” of negotiations by which tariffs were
reduced.
 Efforts to convert GATT into WTO were
intensified during 1980.
 GATT was replaced by the WTO on
1st january,1995
o The efforts of IMF, IBRD (World bank) and
WTO led to the “Globalization of business”
particularly during 1990s

6. SHIFT FROM INTERNATIONAL MARKETING
TO INTERNATIONAL BUSINESS
 In 1980s multinational companies produced the
products in home countries and marketed them in
various foreign countries.
 Later, MNCs started locating their plants and other
manufacturing facilities in host countries.
 Thus, the scope of the international trade
is expanded into international marketing
and international marketing is
expanded into
international business.
 The 1990s and the new millennium clearly
indicate rapid internationalization and
globalization.