Slides Chapter 1 - Introduction

INTRODUCTION TO
INTERNATIONAL BUSINESS
LEARNING OUTCOMES
• Understand the terms of International
Business including Globalization/
Internationalization
• Recognize the challenges of International
Business comparing with Local Business
• Recognize the changing Demographics of
Global Economy
• Understand how the process of globalization
creates opportunities and challenges for
management practice.
International Business  all
business activities across nation borders.
International Commerce
BASIC TERMS  Trade of goods and services
between nations.
International/Foreign
Investment  focusing on global
investment as a part of an investment
portfolio
INTERNATIONAL VS LOCAL BUSINESS
• Differences in territory & business area

• What makes International business harder to manage ?
1. All countries are different.
2. Complexity of International Business Management
3. Framework of the international trade and investment system
4. International Monetary system & Exchange Rate
INSTITUTIONAL-BASED VIEW
Focus on dynamic interaction between institutions
and organizations
Challenges & Opportunities of International Business
differs and depends on the targeting nation.
Information/Knowledge of countries are required
(including cultures, language, market
characteristics)
Changing the product to adapt to each market.
VIETNAMESE LYCHEE IN JAPAN
STARBUCKS IN JAPAN
• Smaller serving size

• Lower sugar levels
• Matcha flavored item
• Budget-friendly premium
products
• Call customers by a
number instead of their
name
• Cozy living
• Seasonal Marketing
• Online on LINE
Etc.
RESOURCE-BASED VIEW
Internal factors decides International Business
Challenges and Opportunities depends on Internal factors.
Company’s resources and abilities decide the strategy & the
success in International Business
Develop optimal products and services to enter foreign
market.
RESOURCE-BASED VIEW
VRIO models
Institution-based
view
Decides the
success of an
organization in
International
Business
Enviroment
Resource-based
view
INTERNATIONAL BUSINESS
DRIVERS
• Expand the market
• Optimize the use of resources
• Taxes
• Limited competitive advantages and opportunities in local market.
• Protect domestic market
• Mitigate the risk
• Government incentives
GLOBALIZATION TRENDS
BASIC TERMS
Globalization vs Internationalization
• Globalization  Bring all nations close together.
• Internationalization  Make things adaptable
• Multinational Enterprises: Headquarter relates to 2

different countries.
• Transnational Corporation: Headquarter in 1
country, business runs in many countries
• Global Firm/International Corporate  Operates
in more than 1 country.
GLOBALIZATION OF MARKET
• Growing interdependency among the economies of

the world; multinational nature of sourcing,
manufacturing, trading, and investment activities;
increasing frequency of cross-border transactions and
financing; and heightened intensity of competition
among a larger number of players. (Hout et al. 1982)
 Make all markets in the world unite.
 Build standards of products and services
 Emerging global markets: BRIC
BRIC
25% WORLD’S LAND COVERAGE
40% WORLD’S POPULATION
COMBINED GDP (PPP) of $20 trillion
GLOBALIZATION
IN PRODUCTION
Take advantage of
resources/services/products from
different nations
Based on differences in price and

GLOBALIZATION quality of factors of production
IN (human resource, energy, natural
PRODUCTION resource, etc.)
 Lower the price and increase
product’s quality
TYPICAL INTERNATIONAL ORGANIZATIONS
• The General Agreement on Tariffs and Trade

(GATT)
• The World Trade Organization (WTO)
• The International Monetary Fund (IMF)
• The World Bank (WB)
• The United Nations (UN)
Mission:
• Regulation, management, and supervision of the global
market.
• Establish an international legal system to operate a
global business system
DRIVERS OF GLOBALIZATION
• Declining Trade and investment barriers

• Role of technological change
DECLINING TRADE AND
INVESTMENT BARRIERS
VALUE OF WORLD TRADE, WORLD PRODUCTION, NUMBER
OF REGIONAL AGREEMENTS AND WORLD POPULATION
FROM 1960 TO 2020
TECHNOLOGY DEVELOPMENT
• WHAT TECHNOLOGICAL INNOVATIONS
PROMOTE THE PROCESS OF GLOBALIZATION ?
TECHNOLOGY DEVELOPMENT
Communications Internet of Things
Transportation
Digital Technology
Technology
DEVELOPMENT OF TRANSPORTATION MAKES
WORLD SMALLER
1500 -1840 1850 - 1930 1950s 1960s
Propeller Jet
Steam locomotives aircraft passenger
Best average speed of horse- average 65 mph. 300 - 400 aircraft, 500
drawn coaches and sailing Steamships average 36 mph. - 700 mph.
ships, 10 mph. mph.
Source: P. Dicken, Global Shift (New York: Guillford Press, 1992) p. 104.
ASIA-EUROPE STRATEGIC TRADE ROUTES
Factors promoting globalization
(Total Global Strategy II, Goege Yip)
Market
Toàn cầu Goverment
Cost hóa
Competitors
FORMS OF PARTICIPATION IN THE WORLD MARKET
• Export  International Commerce
• Cooperation Agreement (licensing, franchising,

Production Contracts, Management Contracts…)
• Foreign direct investment (FDI)

GLOBAL COMPETITIVENESS INDEX
(WORLD ECONOMIC FORUM – WEF)
• Economic/Political system
• Infrastructure
Environment • Information technology application
COMPETITIVENESS INDEX
• Macroeconomic environment stability

• Strengths
Human Capital • Abilities/Skilss
GLOBAL
• Product and Service Market

• Labor Market
Markets • Finance systems
• Market Size
Innovative • Innovation Priorities
Ecosystem • Accepting and adapting Innovation
Transformation • Active in business activities

Readiness • Active in transformation
COMPARING TO OTHER ASIAN
COUNTRIES
Score Ranks/140 countries Score Ranks/140 countries
Political and Economic Systems

COMPARING TO OTHER ASIAN
COUNTRIES
INFRASTRUCTURE
SO SÁNH VỚI CÁC NƯỚC ASEAN
Technology Application
SO SÁNH VỚI CÁC NƯỚC ASEAN
Macroeconomics environment stability
RESEARCH: VIETNAM IN 2022
1. To which country does Vietnam export the

most ?
2. From which country does Vietnam import
the most ?
3. Which industry has the highest export
turnover?
VIETNAM GLOBAL COMPETITIVENESS INDEX(WEF)
RANK GRADE
GLOBAL COMPETITIVENESS INDEX
2020
1. Political & Economic system
2. Infrastruture
3. Macroeconomics Environment Stability
4. Basic Education & Health
5. Higher Education & Vocational Training
6. Efficiency of commodity markets
7. Efficiency of Labor markets
8. Technology Readiness
10. Market Size

Slides Chapter 1 - Introduction

Uploaded by

Copyright:

Available Formats

Slides Chapter 1 - Introduction

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Slides Chapter 1 - Introduction

Uploaded by

Copyright:

Available Formats

INTRODUCTION TO

• Differences in territory & business area

• Smaller serving size

• Multinational Enterprises: Headquarter relates to 2

• Growing interdependency among the economies of

Based on differences in price and

• The General Agreement on Tariffs and Trade

• Declining Trade and investment barriers

Communications Internet of Things

• Cooperation Agreement (licensing, franchising,

• Foreign direct investment (FDI)

• Macroeconomic environment stability

• Product and Service Market

Transformation • Active in business activities

Political and Economic Systems

1. To which country does Vietnam export the

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.