1. University Of Finance & Administration Pavla Břečková [Ing., Ph.D.]
INTERNATIONAL BUSINESS
[NA_IB]
Pavla Břečková [Ing., Ph.D.]

2. INTERNATIONAL BUSINESS – main areas
Full-time course = 12 lectures per 90 mins.
INTERNATIONAL BUSINESS [IB], characteristics, indicators.
WORLD BUSINESS TERRITORIES, challenges, integration, main trading blocks [TRIAD, BRIC]
GLOBAL BUSINESS ENVIRONMENT.
EMERGING MARKETS, characteristics, features, selected markets in detail
BRICS
Doing business in ASIA
Foreign market analysis
PREDISPOSITIONS for working in IB, expatriation and HR in IB

3. 12 lectures (per 90 mins) - Finished by: exam
EXAM terms N_IB
12 lectures (per 90 mins) - Finished by: exam
Completion CONDITIONS = min. 12 points out of 30
Active participation in the lectures
[active listening, discussing, reading, analyzing & interpreting of economic articles or case study results, presence at lectures – 50%]
Case study elaboration & it’s active professional prezentation
Knowledge test
ALL BASED ON POINTS AS FOLLOW
5 points = 3/5 presence (if less = 0 points)
up to 10 points = success at CASE study
& its prezentation
up to 15 points = TEST
TOTAL max 30
12 – 14 points = E
15 – 16 = D
18 – 20 = C
= B
24 – 30 = A

4. CASE study / team project
CASE study on one of these topics:
1. BUSINESS TRENDS / opportunities in the next 10 years
Largest threats & opportunities from the point of view of international business, where it (IB) is going. Areas where it is likely to find the business opportunities during next 10 years + explain what brought you to such results.
2. EXPORT STRATEGY
Mid term view (3-5 years). What it should lie in, generally - how to support export (of CZ enterprises), concrete forms + in which business and industry areas (if in any / if not in all of them) + explain why
3. Finding the COMPETITIVE ADVANTAGE for the Czech Republic / or other country
Competitive advantage + consequently what areas of business and industry should be preferential (if any) + what to do for succeeding in international business from the point of view of competitive advantage (micro and macro view). Possibly also what kind of business environment (or changes in the present one) would help developing the CZ businesses competitive advantage?
4. PRODUCT PLACEMENT – market study
Placing of a product into a foreign market, including product description + argument why it is suitable for export, analyses of the preferential market (why this market, structure and potential of the target group), mapping competition, potentials + risks, argument why you think your product will succeed.

5. CASE study - elaboration
CASE study on one of these topics:
1. BUSINESS TRENDS / opportunities in the next 10 years
2. EXPORT STRATEGY
3. Finding the COMPETITIVE ADVANTAGE for a country
4. PRODUCT placement – market study
ELABORATION:
Elaboration in teams up to 8 people
Presentation of the results
- ppt possible, cca 15 min., structured way, clear outcomes (solutions, results)
PREZENTATION:
- up to 15 min. / all the team members should be involved 5

6. Team projects presentation - schedule
24/2/2014 introductory lesson, setting the teams, choosing topics
10/3/2014 consulting on the team projects
24/3/2014 consulting on the team projects
7/4/2014 guest lecture Steffen Schwarz – part of the course & test
Entrepreneurship: Germany and Europe
21/4/2014 Easter
5/5/2014 presentation of teams, concluding the course

7. LITERATURE SOURCES Povinná literatura / Mandatory reading:
Charles W. L. Hill: Global Business Today, McGraw-Hill/Irwin, 7th edition, 2011
Doporučená literatura / Recommended reading:
Allan Sitkin, Nick Bowen: International Business, January 2010.
Stuart Wall, Dr. Bronwen Rees: International Business: A First Course, September 2009.
Wild, J., Wild, K., Han, J.: International business: the challenges of globalization. 4th ed. – Pearson, Upper Saddle River, ISBN:
Woods, M.: International business. Basingstoke, Palgrave, ISBN:
Griffin, R.W., Pustay, M.W.: International business: a managerial perspective. 5th int. ed. - Upper Saddle River, Prentice Hall, ISBN:

8. EXCHANGE across border
INTERNATIONAL BUSINESS
What is international business?
= exchange of goods and services undertaken by business bodies across the national border with the foreign business bodies
= cross-border commercial
transactions
INT business =
EXCHANGE across border

9. INTERNATIONAL BUSINESS
CONSISTS IN:
Barter / Import / Export
International TRADE
FDI / Portfolio investment / WOS etc.
International INVESTMENT
Licensing / Franchising / Management contracts etc.
Other forms of int. business ACTIVITY 9. 9

10. International INVESTMENTS - generally
FDI = Foreign Direct Investment
investments made for the purpose of ACTIVELY CONTROLLING PROPERTY, assets, or companies located in host countris
home x host country
Forms of FDI
GREENFIELD (new facility)
ACQUISITION of (or merger with existing local firm)
Portfolio Investment
purchases of foreign financial assets (stock, bonds, certificates, deposits) for a purpose OTHER than CONTROL
INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. /

11. How IB differs from DOMESTIC business?
currencies – conversions, risks, rates securing
culture – behavior, business practice
resources
technology – way of producing
often legal system – laws

12. How IB differs from DOMESTIC business?
Cases create legal precedents
COMMON / CASE law
Detailed listing what IS and IS NOT permissible
CIVIL law
Based on the faith & practice of a particular religion
RELIGIOUS law
Often in communist and dictatorships
is whatever the country’s bureaucrats say it is
BUREAUCRATIC law

13. TERRITORIAL COMMODITY
STRUCTURE of IB
TERRITORIAL
COMMODITY

14. TERRITORIAL COMMODITY
STRUCTURE of IB
= portfolio of all the business territories the company or country makes business with
TERRITORIAL
= portfolio of all the business commodities the company or country makes business with
COMMODITY

15. Special hot issue: INTELLECTUAL PROPERTY
products of the mind (SW, screenplays, music, chemical formula
for a new drug).
can be protected by PATENTS, COPYRIGHTS, TRADEMARK
PATENT – grants the inventor of a new product or process exclusive rights for a defined period to the manufacture, use, or sale of that invention
COPYRIGHT – exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit
TRADEMARK – designs and names, often officially registered, by which merchants or manufacturers designate and differentiate their products
15.

16. Business threats / opportunities
WORLD BUSINESS
Features / consideration:
Dollar / Euro ZONE
Business Culture
Law enforcement
Business Barriers
Business threats / opportunities
16.

17. the 20th century by the USA as the great economic power
WORLD BUSINESS
possible PROSPECT
The interesting QUESTION
[from an economic perspective]
is what the above means for the future:
the 19th century was dominated by Great Britain and Europe as colonial powers
the 20th century by the USA as the great economic power
the 21st century will be controlled by Asia,
and China in particular
17.

18. GLOBAL BUSINESS ENVIRONMENT
Session one is devoted to a discussion of the global context within which IB must function in the 21st century.
The aim is to describe the external framework which exists today and which will influence company strategies in the international arena.
There are clearly some factors that will be more important than others in determining the likelihood of success in international markets:
The state of the world economy and the rules and regulations governing INT trade and investment are critical
The political and social environment also impinges on businesses, i.e. consideration of the role of culture in IB / importance of cultural empathy to business success

19. International ENVIRONMENT
GLOBAL
MACRO
MICRO

20. GLOBAL BUSINESS ENVIRONMENT
Awareness of the GENERAL ENVIRONMENT – 2 levels of understanding
BROAD
= relevant to most companies
[includes economy, political, tech. world and sociological issues]
SPECIFIC
= important to the individual business
[includes customer / supplier relations, investor requirements, workplace issues]
Factors at BROAD level of IB understanding
– influences on the IB environment
20. 20

21. IB OPERATIONS (micro / operational level)
Manufacturing
Assembling
Distribution
Selling
21.

22. FACTORS with SIGNIFICANT INFLUENCES on IB
(BROAD level of understanding IB)
POLITICAL
Integration of LDCs and
Centrally planned economies
into INT economy
Difficulties (& oppo)
raised by econ.inequalities
Role of OECD, WTO,
World Bank, EU commiss.
direction of INT
Trade & Investment
Environmental
concerns
ECONOMIC
INT economic agreem.
(liberalisated trade & capital
flows) => led to establishing
REGIONAL ECONOMIC
GROUPINGS - 3 main
trading blocks TRIAD
GATT ( ) =>WTO
2 particular issues of
Importance for FUTURE:
Labour standards
Environmental issues
TECHNOLOGICAL
Economic cycles
in 50 years waves:
Prosperity
Recession
Depression
Recovery
INFROMATION &
COMMUNICATION wave
(1980/90’)
driven via NETWORKS
(comps, tech based com.,
production, control systems)
TRANSPORTATION
22.

23. QUESTIONS to prove knowledge in IB
What is International business? Characterize, please.
What IB consists in? 3 main categories.
What is BARTER?
What is FDI?
What is HOME x HOST country?
What is Portfolio investment?
How IB differs from DOMESTIC trade? What are the main differences?
What law / legal systems do you know?
What is territorial / commodity structure of IB?
GLOBAL business environment – 2 levels: Broad and Specific. Can you explain?
Factors influencing IB: Political / Technological / Economic

24. Thank you for your attention
INTERNATIONAL BUSINESS
Thank you for your attention
Ing. Pavla Břečková, Ph.D.