Lesson 1 - Copy.pptx

LESSON 1 INTRODUCTION TO INTERNATIONAL BUSINESS Lesson 1 BUSINESS 3 Introduction to International Business – International business – Drivers of international business 7 – Benefits of international business 9 – Scope of international business  international marketing,...

LESSON 1 INTRODUCTION TO INTERNATIONAL BUSINESS Lesson 1 BUSINESS 3 Introduction to International Business – International business – Drivers of international business 7 – Benefits of international business 9 – Scope of international business  international marketing, international investments, management of foreign exchange, procuring international finance from International Monetary Fund (IMF), World Bank, International Finance Corporation (IFC), International Development Association (IDA) etc., management of international human resources, management of cultural diversity, management of international production and logistics, international strategic management 11 DIFFERENCE BETWEEN DOMESTIC AND INTERNATIONAL BUSINESS SIMILARITIES 12 DIFFERENCES 1. ENVIRONMENT 1. LOGISTICS 2. PLAN AND STRATEGY 2. ADVERTISING AND PROMOTION 3. COMPETITION 3. APPROACH 4. DIFFERENCES IN CURRENCIES 4. NATURAL AND GEOGRAPHICAL 5. TARIFFS AND QUOTAS CONDITIONS 6. RESEARCH AND DEVELOPMENT 5. LEGAL SYSTEMS 7. HUMAN RESOURCES 6. MOBILITY OF FACTORS OF PRODUCTION 8. ORGANIZATIONAL VISION AND OBJECTIVE 7. SOVEREIGN POLITICAL ENTITIES 9. INVESTMENT 10. DISTRIBUTION 13 – Globalization 15 BASIC ACTIVITIES IN GLOBALIZATION Investment (particularly foreign direct investment), the spread of technology, the spread of strong institutions the spread of an educated workforce, 16 17 – Benefits and Criticism of Globalization BENEFITS 1. INCREASE IN 1. HIGHER VOLUME OF COMPETITIVE STRENGTH TRADE OF DOMESTIC INDUSTRY 2. CONSUMER WELFARE 2. ACCESS TO ADVANCED 3. DIVERSITY IN TECH PROFESSIONALIZATION 3. ACCESS TO FOREIGN AND MANAGEMENT INVESTMENT 4. REDUCTION IN COST OF PRODUCTION 5. GROWTH AND EXPANSION 19 20 CRITICISMS 1. THREAT TO DOMESTIC INDUSTRY 2. UNEMPLOYMENT 3. THREAT TO DEMOCRACY 4. ECONOMIC INSTABILITY 5. DISREGARD OF NATIONAL INTEREST 21 – Myths about globalization Stages of Globalization 23  – Risks in global business 1. POLITICAL AND REGULATORY RISKS 2. CULTURAL AND MANAGERIAL RISKS 3. EXCHANGE RISK 4. CREDIT RISK 5. TRANSPORT RISK 6. MARKET RISK ISSUES IN GLOBAL BUSINESS 1. ORGANIZATIONAL ASPECTS 2. RESOURCE ALLOCATION 3. LEADERSHIP 4. PLANS AND POLICIES 25 GLOBALIZATION AND INTERNATIONAL TRADE Ernesto Zedillo, the former president of Mexico, observed, "In every case where a poor nation has significantly overcome its poverty, this has been achieved while engaging in production for export markets and opening itself to the influx of foreign goods, investment, and technology." 26 – Globalisation and international trade – The future of globalisation Modes of Entry 30 31 32  https://www.inven.ai/company-lists/top-15-contract-man ufacturing-companies https://smallbusiness.chron.com/advantages-disadvanta ges-management-contracts-18886.html 33 34 35