INTERNATIONAL BUSINESS

Nguyen Thi Quynh Nga

 Textbook and readings
1. Hill, C.L.W. (2010) International Business: Competing in the
global marketplace 4th Ed. McGraw-Hill Irwin, Boston et al ii
2. Daniels, J., Radebaugh, L. and Sullivan, D. (2011) International
Business: Global Edition, 13th edition, Prentice Hall.
3. Marios. I.K, International business: A Global Perspective
4. Business across culture: Fons Trompenaars
5. Giáo trình kinh doanh quốc tế: TS. Phạm Thị Hồng Yến
6. Giáo trình kinh doanh quốc tế: PGS.TS. Nguyễn Thị Hường – Đại
học kinh tế quốc dân
7. TT hỗ trợ hội nhập QT: https://trungtamwto.vn/
8. TT hỗ trợ hội nhập QT TPHCM: https://www.hoinhap.org.vn/
Textbooks
 Learning requirements
❖ Before class you have to:
• Answer all the review questions which teacher mentioned in the
previous chapter

• Complete the activity and case studies

❖ In class:
 Grading
Attendance: 10%
Group assignment: 20%
Mid-term test 10%
Final exam: 60%
Note:
- You have to meet two following
requirements:
- Attendance not less than 75%
(15 minutes late equal to absence)
- Mid – term score might be over 4
 Mid-term assignment
• Each group will consider the viability of
starting or expanding business internationally
in a particular business sector of a selected
country
• The groups should provide an integrated
international business plan that makes
recommendations regarding the preferred
type of international business strategy,
country evaluation, entry modes, and
organizational structure.
 Mid-term assignment
• Step 1: Select a country for analysis and the
business as well.
• Step 2: Obtain as much relevant information
about the country as possible. This may involve
research in the library, reference to relevant
Internet sites and/or discussion with those having
relevant experience and information
• Step 3: Identify the strategies; tactics and
implementation plan which provide the road map
to success for your business.
 CONTENTS
• Chapter 1: Globalization
• Chapter 2: National Differences in Culture
• Chapter 3: National Differences in Politics
• Chapter 4: National Differences in Economics
• Chapter 5: International Business Strategies
• Chapter 6: Modes of Entries
• Chapter 7: The organizational structure
• Chapter 8: Business Ethics and Social
Responsibility
Globalization Chapter 1 (Daniels)
The Cultural Environments Facing Chapter 2 (Daniels)
Business Chapter 4 (Hills)
The Political and legal Environments Chapter 3 (Daniels)
facing business Chapter 2 (Hills)
The Economic Environments Facing Chapter 4 (Daniels)
Business Chapter 2 (Hills)
Country Evaluation and Selection Chapter 13 (Daniels)
Chapter 12 (Daniels)
The Strategy of International Business
Chapter 13 (Hills)
The Organization of International
Chapter 16 (Daniels)
Business
Chapter 14 (Daniels)
International Market entry modes
Chapter 14 (Hills)
 International Business
Fiteenth Edition, Global Edition

Chapter 1
International Business
and Globalization

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 Learning Objectives (1 of 2)

1-1 Relate globalization and international

business (IB) to each other and explain why
their study is important
1-2 Grasp the forces driving globalization and IB
1-3 Discuss the major criticisms of globalization

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Learning Objectives (2 of 2)
1-4 Assess the major reasons companies seek to
create value by engaging in IB

1-5 Define and illustrate the different operating

modes for companies to accomplish their
international objectives

1-6 Recognize why national differences in

companies’ external environments affect how
they may best improve their IB performance

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Factors in IB Operations
Objective 1-1
Figure 1.1 Factors in IB Operations

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Factors in IB Operations

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Globalization and IB
Objective 1-1

• What is Globalization?
• Why Globalization?
• The connection between Globalization and IB.
• Why study IB?

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Introduction
(Jonh Daniel, 2015): International business
consists of all commercial transactions between
two or more countries.
• The goal of private business is to make profits.
• Government business may or may not be
motivated by profit.
 The four modes of supply are as follows:

• Mode 1:Cross-border.
• Mode 2:Consumption abroad.
• Mode 3:Commercial presence.
• Mode 4:Presence of natural persons
 The four modes of supply are as follows:
• Mode 1: Cross-border
• Definition: services supplied from the territory of one WTO
Member into the territory of any other Member
• Mode 2: Consumption abroad
• Definition: services supplied in the territory of one WTO
Member to the service consumer of any other Member
• Mode 3: Commercial presence
• Definition: services supplied by a service supplier of one
WTO Member, through commercial presence, in the territory
of any other Member
• Mode 4: Presence of natural persons
• Definition: services supplied by a service supplier of one
WTO Member, through the presence of natural persons of a
Member in the territory of any other Member
Globalization and IB
Objective 1-1

• What is Globalization?

Globalization is the widening and deepening of interdependent relationships among

people from different nations. small countries can rely on big/rich countries and vice versa

The term sometimes refers to the elimination of barriers to international movements of

goods, services, capital, technology, and people that influence the integration of world
economies. --> INPUT OF PRODUCTION

EX: tariffs, NTB - SPS, TBT, ...

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Globalization is the widening and deepening of
interdependent relationships among people from
different nations. The term sometimes refers to the
elimination of barriers to international movements
of goods, services, capital, technology, and people
that influence the integration of world economies.
(John. D. Daniels)
Globalization refers to the shift toward a more
integrated and interdependent world economy
(Charles. W. Hill)
What is Globalization ?

BETTER COMMUNICATION between

countries
Integration
multilateral
organizations
--> to exchange
G&S better,
reduce barriers,...
 Globalization and IB
Objective 1-1

• Why Globalization?
Globalization enables us to get more variety, better quality, or lower prices.
• The connection between Globalization and IB.
The global connections between supplies and markets result from the activities of IB, which
are all commercial transactions.
Case: VNese company has to change their business model to compete with foreign companies
Traditional taxi has to change the booking process

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 Globalization of Markets

…refers to the merging of

historically distinct and separate
national markets into one huge
global marketplace

- Falling trade barriers → easier to sell

internationally
-The tastes and preferences of consumers
are converging on some global norms
- Same basic products worldwide
- “German market” or the “American
market”, only the global market
Upward and downward process:
Market -> focus on the output
Production -> focus on the factors of production
Globalization of
Production

…refers to the sourcing of goods and

services from locations around the
globe to take advantage of national
differences in the cost and quality of
factors of production like land, labor,
energy and capital

- Companies compete more

effectively by lowering their overall
cost structure or improving the
quality or functionality of their
product offering
 Smile curve
global value chain: hàng hóa đc break down thành nhiều giai đoạn khác nhau. Trc đây chỉ export finished products. Các thuật ngữ Made IN không còn phù hợp
mà giờ là made BY.
In recent years, Bitis invested resources in RND or booked celebrities. The resources are not focused on only the manufacturing stage.
Vingroup invested in RND and created Xanh SM using green energy.

main stage
McDonald’s menu

28
The Forces Driving Globalization and IB
Objective 1-2

• Although hard to measure, Globalization:

−Has been growing.
−Is less pervasive than generally thought <=>
(unwelcome effects are less than what was
thought)
−Has economic and noneconomic dimensions.
−Is stimulated by several factors.

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Factors in increased Globalization
Objective 1-2

•The Forces Driving Globalization and IB

− Rise in and application of technology
− Liberalization of cross-border trade and resource
movements
− Development of services that support IB
− Growth of consumer pressures
− Increase in global competition
− Changes in political situations and government
policies
− Expansion of cross-national cooperation

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Activity Minute:

•Break students into small groups and ask

them to rank order the globalization factors
based on most important (10) to least
important (1), based on their perspective.

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 Drivers of Globalization
-The decline in barriers → free flow of goods, services, and capital. (GATT, WTO)

- The technological changes (productions, telecom, transportation..)

Criticisms of Globalization and IB
Objective 1-3

• Sovereignty
• Environment
• Some people may lose jobs
• Increase to personal stress

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Why engage in IB?
Objective 1-4 Assess the major reasons companies seek to create value by
engaging in IB.

• Sales expansion
• Resource acquisition
• Risk reduction

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Activity
In your point of view, you choose anti or support
the globalization. Explain.
 … Anti
- Firms collapse, job losses
- Wealth - Poverty gap
- Child, women labor
- Environmental degradation
- The cultural imperialism of global
media and MNEs
- Financial crisis
- Country sovereignty
Support…
- New production and
business opportunities
- New markets, new
production sources
- Lower prices for goods
and services.
- Greater economic growth
- Higher consumer income,
and more jobs
IB Operating Modes
Objective 1-5

• Merchandise Exports and Imports

• Service Exports and Imports
• Investments

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Types of International Organizations
Objective 1-5

• MNE
• Multinational Enterprise
• Collaborative Arrangements

Collaborative arrangements denotes companies’ working

together, for example:

• Joint ventures.
• Licensing agreements.
• Management contracts, minority ownership.
• Long-term contractual arrangements.

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Factors Affecting Ability to Operate Abroad
Objective 1-6

• Physical factors
• Institutional factors
• Competitive factors

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