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INTERNATIONAL TRADE & COMPETITIVENESS
4/21/2017
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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
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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
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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
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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
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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
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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
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National Differences Political Systems Economic Systems Democracy
Communism Socialism Economic Systems Market Economy Command Economy Mixed Economy 4/21/2017
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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
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National Differences Culture Difference Social Structure Language
Religion Education Political Philosophy Economic Philosophy 4/21/2017
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Ethics in International Trade
Employments Practices Human Rights Corruptions Environmental pollutions 4/21/2017
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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
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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
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International Trade Theory
Implication for Manager Location First Mover Advantage Government Policy Case Study IBM LOGITECH ArcelorMittal Steel 4/21/2017
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Regional Economic Integration
Political Union Economic Union Common Markets Custom Union Case Study European Union SAARC 4/21/2017
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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
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International Monetary System
Gold Standard Fixed Exchange Rate System Pegged Exchange Rate System Floating Exchange Rate System Convertibility Partial Full 4/21/2017
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Strategy of International Trade
International Strategy Localization Strategy Transnational Strategy Global Standardization Strategy 4/21/2017
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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
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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
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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
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Other Issues Global Research & Development Human Resources Management
International Financial Management International Accounting Standards International Logistics 4/21/2017
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THANK YOU 4/21/2017
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