INTERNATIONAL TRADE & COMPETITIVENESS 4/21/2017

Competition Try to win Success or Failure Success means Powerful, Efficient Powerful is a comparative word Depends on Time, Occasion, Product, Place Continuous Process 4/21/2017

International Trade Globalization of Markets Removing Trade Barriers General Agreements on Tariffs and Trade Established in 1947 Membership grow from 19 to 120 Nations Tariff Reduction was spread in eight round World Trade Organization Establish in 1995 under the Uruguay Round Membership grow to 148 members by 2005 General Agreement on Trade in Services 4/21/2017

International Trade Globalization of Markets Convergence of Consumers taste & Preferences Creating basic global market Example Coca-Cola Soft drinks, Visa Cards, Sony Play Station Video Games, McDonald’s hamburgers Removing Geographical Barriers Communication Systems Internet Development of Ports & Sea Routes 4/21/2017

International Trade Globalization of Production Advantage in Labour Cost Advantage in Capital Cost Advantage in Materials Cost Innovation Technology & Research and Development Human Resources Government Policies & Incentives 4/21/2017

International Trade Globalization of Production (Examples) IBM Think Pad X31laptop computer Products Design in USA Case, keyboard and hard disk made in Thailand Display screen and memory in South Korea Built-in wireless card in Malaysia Micro processor and sales in USA Assembly in Mexico 4/21/2017

International Trade Benefits to Nation Benefits to Firms Rapid Economic Development Employment opportunities Increase in National Wealth Benefits to Firms Cost Reduction Economic Scale of Production Improve Enterprise Value 4/21/2017

National Differences Political Systems Economic Systems Democracy Communism Socialism Economic Systems Market Economy Command Economy Mixed Economy 4/21/2017

National Differences Legal Systems Economic Development Property Rights The Protection of Intellectual Property Product Safely and Product Liability Economic Development Developed Economy Under Developed Economy Developing Economy 4/21/2017

National Differences Culture Difference Social Structure Language Religion Education Political Philosophy Economic Philosophy 4/21/2017

Ethics in International Trade Employments Practices Human Rights Corruptions Environmental pollutions 4/21/2017

International Trade Theory Mercantilism The Theory of Absolute Advantage The Theory of Comparative Advantage The Heckscher-Ohlin theory of factor endowments The Product Life Cycle Theory New Trade theory 4/21/2017

International Trade Theory Porter’s Theory of National Competitive Advantage Factor endowments Domestic Demand Conditions Relating & Supporting Industries Firm Strategy, Structure, and Rivalry 4/21/2017

International Trade Theory Implication for Manager Location First Mover Advantage Government Policy Case Study IBM LOGITECH ArcelorMittal Steel 4/21/2017

Regional Economic Integration Political Union Economic Union Common Markets Custom Union Case Study European Union SAARC 4/21/2017

The Foreign Exchange Market Function of Foreign Exchange Market Currency Conversion Foreign Exchange Risk Exchange Rate Determination Interest Rate and Inflation Foreign Exchange Reserve Investor Psychology 4/21/2017

International Monetary System Gold Standard Fixed Exchange Rate System Pegged Exchange Rate System Floating Exchange Rate System Convertibility Partial Full 4/21/2017

Strategy of International Trade International Strategy Localization Strategy Transnational Strategy Global Standardization Strategy 4/21/2017

Strategy of International Trade Strategy Requirement Value Creation Cost Reduction Pressure Local Responsiveness Economic Scale of Production Leveraging Product & Competencies Creating a Value Chain 4/21/2017

Strategy of International Trade Entry Strategy Which Foreign Markets Timing of Entry Scale of Entry Modes of Entry Exporting Turnkey Projects, & Greenfield Venture Licensing, Franchising, & Joint Ventures 4/21/2017

Strategy of International Trade Modes of Entry Acquisition & Mergers Strategic Alliances Core Competencies & Entry Mode Technical Know-how Management Know-how Human Resources Advantage 4/21/2017

Other Issues Global Research & Development Human Resources Management International Financial Management International Accounting Standards International Logistics 4/21/2017

THANK YOU 4/21/2017