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1-1 International Business Environments and Operations, 13/e Global Edition Part One Background For International Business Copyright © 2011 Pearson Education
1-2 Chapter 1 Globalization and International Business Copyright © 2011 Pearson Education
1-3 Chapter Objectives To define globalization and international business and show how they affect each other To understand why companies engage in international business and why international business growth has accelerated To discuss globalization’s future and the major criticisms of globalization To become familiar with different ways in which a company can accomplish its global objectives To apply social science disciplines to understanding the differences between international and domestic business Copyright © 2011 Pearson Education
1-4 Introduction Globalization is the ongoing process that deepens and broadens the relationships and interdependence among countries. International Business is a mechanism to bring about globalization. Copyright © 2011 Pearson Education
1-5 International Business International business consists of all commercial transactions—including sales, investments, and transportation—that take place between two or more countries Increasingly foreign countries are a source of both production and sales for domestic companies Copyright © 2011 Pearson Education
1-6 Studying International Business is Important Most companies are either international or compete with international companies Modes of operations may differ from those used domestically The best way of conducting business may differ by country An understanding helps you make better career decisions An understanding helps you decide what government policies to support Copyright © 2011 Pearson Education
1-7 International Business: Operations and Influences Copyright © 2011 Pearson Education
1-8 Measuring Globalization A.T. Kearney/Foreign Policy Globalization Index Economic Technological Personal Contact Political Copyright © 2011 Pearson Education
1-9 Factors Contributing to Rapid Growth of International Business 1.Increase in and expansion of technology 2.Liberalization of cross-border trade and resource movements 3.Development of services that support international business 4.Growing consumer pressures 5.Increased global competition 6.Changing political situations 7.Expanded cross-national cooperation Copyright © 2011 Pearson Education
1-10 What’s Wrong with Globalization Threats to national sovereignty Economic growth and environmental stress Growing income inequality and personal stress Offshoring – the transferring of production abroad – is controversial in terms of who benefits when costs are reduced and whether the process exchanges good jobs for bad ones. Copyright © 2011 Pearson Education
1-111 Companies Engage in International Business To Expand Sales: pursuing international sales increases the potential market and potential profits To Acquire Resources: may give companies lower costs, new and better products, additional operating knowledge To Diversify or Reduce Risks: international operations may reduce operating risk by smoothing sales and profits, preventing competitors from gaining advantage Copyright © 2011 Pearson Education
1-12 Modes of Operation in International Business Merchandise exports and imports Service exports and imports Tourism and Transportation Service Performance Asset Use Investments Foreign Direct Investment (FDI) Portfolio Investment Copyright © 2011 Pearson Education
1-13 Multinational Enterprises Multinational Enterprises (MNEs) take a global approach to markets and production. Sometimes they are referred to as multinational corporations or companies (MNCs) or transnational companies (TNCs). Copyright © 2011 Pearson Education
1-14 Difference Between International and Domestic Operations When operating abroad companies may have to adjust their usual methods of carrying out business. Foreign conditions often dictate a more suitable method, and the operating modes used for international business differ from those used on a domestic level. Copyright © 2011 Pearson Education
1-15 Physical and Social Factors Affecting International Business Operations To operate within a company’s external environment, its managers must have knowledge of business operations and a working knowledge of social sciences, and how they affect all functional business fields. Copyright © 2011 Pearson Education
Physical and Social Factors Affecting International Business Operations Copyright © 2011 Pearson Education
1-17 Competitive Factors Affecting International Business A company’s competitive strategy influences how and where it can best operate. A company’s competitive situation may differ in terms of its relative strength and which competitors it faces. Copyright © 2011 Pearson Education
1-18 Competitive Factors Affecting International Business Copyright © 2011 Pearson Education
1-19 Future of International Business and Globalization Further globalization is inevitable. International business will grow primarily along regional rather than global lines. Forces working against further globalization and international business will slow down both trends. Copyright © 2011 Pearson Education
1-20 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2011 Pearson Education
Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 1- 1 A Framework for Human Resource Management,
Foreign Direct Investment Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall.
Chapter 2 Understanding International Business & Management.
3- Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1 Organizational Theory, Design, and Change Sixth Edition Gareth R. Jones Chapter.
5 chapter Based on: Business Essentials, 7 th Edition Ebert/Griffin © 2009 Pearson Education, Inc. Mr. AGUNG PRAPTAPA Teaching Material for MM 2010 BUSINESS.
The Personal is the Political Economic Who makes economic decisions? What is the current political economic context in which those decisions are made?
2-1 Copyright 2009 McGraw-Hill Australia Pty Ltd PPTs t/a Managerial Problem Solving by Wood Slides prepared by Robert Wood, Julie Cogin and Jens Beckmann.
Chapter 16 - slide 1 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall i t s good and good for you Chapter Sixteen Personal Selling.
1 Management of MNEs/MNCs Course Instructor: Ferdausi Sultana.
2 chapter Business Essentials, 7 th Edition Ebert/Griffin © 2009 Pearson Education, Inc. Business Ethics and Social Responsibility Instructor Lecture PowerPoints.
3.1 © 2010 by Pearson 3Chapter Information Systems, Organizations, and Strategy.
Copyright © 2007 Pearson Addison-Wesley. All rights reserved. Chapter 21 Multinational Tax Management.
The Manager as a Planner and Strategist McGraw-Hill/Irwin Contemporary Management, 5/e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Presented by. © 2012 ISACA. All rights reserved. No part of this publication may be used, copied, reproduced, modified, distributed, displayed, stored.
Copyright © 2007 Pearson Addison-Wesley. All rights reserved. Session 8 Chp 15 International Portfolio Theory and Diversification.
Copyright © 2011 Pearson Addison-Wesley. All rights reserved. Chapter 4 Comparative Advantage and Factor Endowments.
Management Information Systems MANAGING THE DIGITAL FIRM, 12 TH EDITION GLOBAL E-BUSINESS AND COLLABORATION Chapter 2.
Business Essentials: Unit 3 The U.S. Business Environment.
chapter National Differences in Political Economy McGraw-Hill/Irwin Global Business Today, 5e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.
CHAPTER 4 & 5 Conducting Country & Industry Research International Business: The New Realities1.
CONTEMPORARY MANAGEMENT (Lec:1) Asst. Prof. Management Science (USA), IMRAN HUSSAIN.
Globalization Chapter 13 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. This chapter: Explains globalization in more depth.
Slides prepared by Thomas Bishop Chapter 7 International Factor Movements.
1 TOURISM’S GROWTH and NATIONAL ECONOMIES 1. The National Economy 2. Factors affecting tourism’s contribution to GDP 3. Problems in measuring tourism’s.
Management Information Systems MANAGING THE DIGITAL FIRM, 12 TH EDITION GLOBAL EDITION MANAGING GLOBAL SYSTEMS Chapter 15 VIDEO CASES Case 1 Daum Runs.
The Future Path of Globalization...the sea brought Greeks the vine from India, from Greece transmitted the use of grain across the sea, from Phoenicia.
Chapter 4 Comparative Advantage and Factor Endowments.
1 Lectures 29-31: Foreign Direct Investment Determinants of FDI Evaluation of FDI Effects of FDI.
E-Marketing, 3rd edition Judy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 2: Strategic E-Marketing © Prentice Hall 2003.
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