1. Welcome to class of International Business Dr
Welcome to class of International Business Dr. Satyendra Singh Professor, Marketing and International Business University of Winnipeg Canada

2. Objectives: History of International Business The Debate Definitions
Globalization
The International Business Model
Characteristics of International Business

3. History of International Business
Early Traders
Well before the time of Christ and Greek merchants
China stimulated the emergence of an internationally integrated trading system
“all roads lead to China”
17th Century Mercantilism/Colonialism
British East India Company
Dutch East India Company
France, Portugal, Spain …

4. Globalization Debate World Trade Organization Debate Against:
Extensive public protests about globalization and the liberalization of international trade
Debate
For:
poverty , living standards
Against:
Income inequality 
Labor standard 
Environmental health conditions 

5. Opposition to Globalization…!
Albania
Algeria
Burundi
Congo
Madagascar
Myanmar
Syria
Ukraine!

6. Opposition to Globalization!

7. Definitions International/foreign/multidomestic Firm Global Firm
An organization with multicountry affiliates
Each formulates its own business strategy on perceived market differences
Global Firm
an organization that attempts to standardize and integrate operations worldwide in most of all functional areas
Ratio of foreign to total employment
Ratio of foreign to total assets
20 countries

8. Globalization Globalization Coined by Theodore Levitt
“as if the entire world (or major regions of it) were a single entity; [such an organization] sells the same things in the same way everywhere”
Economic Globalization
International integration of goods, technology, information, labor, and capital
Process of making this integration happen

9. International Business Model

10. Characteristics of International Business…
Domestic Environment
All the uncontrollable forces in the home country that surround and influence the firm’s life and development
Shortage of foreign currency
FDI in home country
Foreign Environment
All the uncontrollable forces originating outside the home country that surround and influence the firm
different values (Conflict: bypass country A to serve B)
difficult to assess (Clause: quality of welfare/life)
Interrelated (Technology vs. mass labor)

11. Characteristics of International Busines
International Environment
Interaction between domestic and foreign environmental forces
Intl. Organizations (WTO, NAFTA…) affect businesses
Decisions are linked to other subsidiaries (strike)
Decision making more complex
Prefer time off vs. more money
Cultural differences
Self-reference criterion: decisions based on your own cultural values