International Business: Strategy, Management, and the New Realities MGT 464 International Business Management Professor Stone Fall 2010

International Business: Strategy, Management, and the New Realities Important Information Office: JH 4222 Phone: Office Hours: Mon 2-3 and 6-7; Thu 1-2 Text: Cavusgil, Knight & Riesenberger, International Business: Strategy, Management and the New Realities. Pearson. ISBN

International Business: Strategy, Management, and the New Realities Class Content Weekly Quizzes Chapter Reading and Geography 7% Int’l Business Research Paper Team project25% Int’l Business Paper Presentation Team project5% Cases and Discussion Answers 4 at 3% each (2pages max.)12% Midterm Evaluations 2 m-c, non-cumulative at 15% each30% Final Evaluation (cumulative essay)15% Attendance, Particip. Instructor Eval.(6%)

International Business: Strategy, Management, and the New Realities Research Paper Overview 4-person groups Identify an international business opportunity (industry) Select two potential host countries in which to operate Evaluate potential and risk of the two countries Select one country Describe entry steps and considerations for your business in that country. Paper length approximately 30 pages, with MLA-style references. Present your results and conclusion at the end of the semester

International Business: Strategy, Management, and the New Realities Research Paper Milestones Sept. 2Team formation in class Sept. 16Turn in proposal Oct. 7Turn in detailed outline Nov. 11Turn in first draft for feedback (optional) Dec. 2Team presentation Dec. 9Turn in final report

International Business: Strategy, Management, and the New Realities Chapter 1 Introduction to International Business International Business Strategy Management & the New Realities

International Business: Strategy, Management, and the New Realities The Internationalization of Business Companies conduct value-adding activities on a global scale, primarily to organize, source, manufacture, and market A “level playing field” has made international activities appealing to all types of firms- large and small; manufacturing and service sectors (e.g. banking, transportation, engineering and design, advertising, and retailing). REALLY?

International Business: Strategy, Management, and the New Realities The Nature of International Business All value-adding activities including sourcing, manufacturing, and marketing, can be performed in international locations The subject of cross-border trade can be products, services, capital, technology, know-how, and labor Firms internationalize via exporting, foreign direct investment, licensing, franchising, and collaborative ventures

International Business: Strategy, Management, and the New Realities Globalization of Markets – a Macro Concept Ongoing economic integration and growing interdependency of countries worldwide. Integration is central to globalization, which has resulted in the widespread diffusion of products, technology, and knowledge worldwide, regardless of where they originate.

International Business: Strategy, Management, and the New Realities Dimensions of Market Globalization Greater integration and interdependency of national economies; leading to freer movement of goods, services, capital, and knowledge Rise of regional economic integration blocs Growth of global investment and financial flows Convergence of consumer lifestyles and preferences Globalization of production

International Business: Strategy, Management, and the New Realities World Trade Is Growing Faster than GDP Rapid integration of world economies is fueled by factors such as the decline of trade barriers, e.g. tariffs, liberalization of markets, privatization and the economic vitality of emerging markets. REALLY?

Comparing the Growth Rates of World GDP and World Exports Data are 4 years old. What’s been happening Since 2006?

Leading Countries in International Merchandise Trade, Total Value Data are 9 years old. What’s been happening Since 2000?

Leading Countries in International Merchandise Trade, as % of Nation’s GDP What data does this Chart represent? What is Date of this chart?

Foreign Direct Investment (FDI) Inflows into World Regions (in Billions of U.S. Dollars per Year) Data are 5 years old. What’s been happening Since 2004?

Leading Countries in International Services Trade, Total Value What data does this Chart represent? What is Date of this chart?

Leading Countries in International Services Trade, as % of Nation’s GDP What data does this Chart represent? What is Date of this chart?

International Business: Strategy, Management, and the New Realities Why Study International Business? A facilitator of the global economy and interconnectedness A contributor to national economic well- being A competitive advantage for the firm An activity with societal implications A source of competitive advantage for you

International Business: Strategy, Management, and the New Realities An International Business Student Must… Understand cultural differences Know why firms in different countries trade Know how and why governments control international trade Know how to analyze a country for its potential for trade Know how to create an international business opportunity