Transcript INTERNATIONAL BUSINESS

University Of Finance & Administration
INTERNATIONAL BUSINESS
RELATIONS
[BA_IBR]
Pavla Bře čk
o vá [In g .,P h.D .]
pavla .b re ck
o va @
v sfs .c z
INTERNAT
I ONAL BUS
I NESS – m
a in a re a s
Full-time course = 12 lectures per 90 mins.
•
INTERNAT
I ONAL BUS
I NESS [I B], h
c ara cte ristics
, in dic
a to rs
.
•
WORL
D BUS
I NESS TERR
I TOR
I ES
, h
c allen g es
, n
i teg ra tion ,
a
m in tra din g lo
b cks [TR
I A
D , BR
I C]
•
GLOBAL BUS
I NESS ENV
I RONMENT
.
•
EMERG
I NG MARKETS
, c
h ara cte ristics
, fe a ture ,s s
e le cte d
a
m rk
e ts in e
d ta il
•
BR
I CS
•
Doin g busin ess n
i AS
I A
•
o
F re ig n a
m rk
e tan alysis
•
PRE
D IS
P OS
I T
I ONS o
f ro
w rkin g n
i IB
, e xp
a tria tion an d HR n
i IB
2.
EXAM te rms BA_
I BR
12 le cture s (p
e r 90 min s) - Fin is
h ed by:
ex
a m
o
C mp
le tion CON
D IT
I ONS = min . 12 o
p in tso uto f 30
 Activ e a
p rticip
a tion n
i h
t e le cture s
[active listening, discussing, reading, analyzing & interpreting of economic
articles or case study results, presence at lectures – 50%]
 a
C s
e studye la b
o ra tion & it’sa ctiv e pro fe ssion al pre zen ta tion
 K
n oe
lw d
g ee
t st
ALL BASED ON POINTS AS FOLLOW
5p oints = 3/5 presence (if less = 0 points)
p to 10p oints = success at CASE study
u
& its prezentation
p to 15p oints = TEST
u
TOTAL m
a x 30
12 – 14 points = E
15 – 17 = D
18 – 20 = C
21 - 23 = B
24 – 30 = A
CASE study / te a m pro je ct
CASE study on one of these topics:
1. BUSINESS RELATIONS
… worldwide. The world economy structuring nowadays, may be compared with the past /
possible prospects for future. Examples of certain (political) decisions => concrete influence on
business or business relations.
2. SMEs (Small & Medium Enterprises) and their role in a globalizing world
Companies up to 250 employees (acc.to European definition), their specifics, positives x
negatives, could contain some statistics or comparison in various countries. Their major role in
society, comparison of views on them in various countries or contexts.
3. FAMILY BUSINESS
…and their role in global business, positives x negatives, examples, specifics,
problem of handing over to next generations, comparisons in various countries etc.
4. PRODUCT PLACEMENT – market study
Placing of a product into a foreign market, including product description + argument
why it is suitable for export, analyses of the preferential market (why this market, structure and potential
of the target group), mapping competition, potentials + risks, argument why you think your product will
succeed.
5. NOT WIDELY KNOWN (UNUSUAL INFORMATION) about BRICS / EU / ASEAN or
another international trade grouping
CASE study -e la b
o ra tion
CASEs tudyo no n
e o f th
e s
e to p ic s:
1. Bu
s in
e ss R
e la tio n
s
. SME
2
s a nd th
e ir ro le ina g
lo b alizing w
o rld
. F
3
a mil y Bu
s in
e ss
. PRODUCTp la ce m
4
e nt – m
a rk
e ts tudy
. N
5
o t wid
e ly kn
o wn in
fo rm
a tio nab outa n inte rn
a tio n
a lg
ro
p ing
u
ELABORATION:
 Elaboration in teams per up to 8 people
 Presentation of the results
- ppt possible, cca 10 min., structured way, clear outcomes
(solutions, results)
PREZENTATION:
-u
p to 10 min
. /a ll th
e te a m m
e m
b e rs s h
o u
l db e in
v o lv e d
I TERATURE SOURCES
L
P v inná lite ra tu
o
ra / M
a nd
a to ryre a ding:
Charles W. L. Hill: Global Business Today, McGraw-Hill/Irwin, 7th edition,
2011
o
D p o ruč
e ná lite ra tu
ra / R
e c
o mm
e nd
e dre a ding:
Allan Sitkin, Nick Bowen: International Business, January 2010.
Stuart Wall, Dr. Bronwen Rees: International Business: A First Course,
September 2009.
Wild, J., Wild, K., Han, J.: International business: the challenges of
globalization. 4th ed. – Pearson, Upper Saddle River, 2008. ISBN: 978-013-174743-6.
Woods, M.: International business. Basingstoke, Palgrave, 2001. ISBN: 0333-75979-6.
Griffin, R.W., Pustay, M.W.: International business: a managerial
perspective. 5th int. ed. - Upper Saddle River, Prentice Hall, 2007. ISBN:
0-13-233532-8
6.
TR
I D
A –3a
m n
i o
w rl d tra din g lo
b cks
NAFTA
•
•
North American Free Trade Agreement
USA, CANADA, MEXICO
EU
•
28 countries
ASEAN
•
•
•
7.
East & South-East ASIA
Indonesia, Malaysia, Philippines, Singapore and Thailand from 1967
Brunei, Burma (Myanmar), Cambodia, Laos and Vietnam
TR
I A
D – NAFTA
NAFTA
member states
• FREE TRADE
AREA
• From 1994
•
Population:
457 million
Density:
25.1/km2
• GDP/capita:
35,490 USD
• Water 7.4%
8.
TR
I D
A – EURO
P EAN UN
I ON
EU member states
•
Economic
UNION
•
GDP / capita:
39.729 USD
•
Population:
- 501 million
- density:
115.9/km2
•
Water 3.08%
9.
TR
I D
A – ASEAN
ASEAN
•
Free Trade
Area
•
GDP / capita:
5,131 USD
•
Population:
600 million
(8.8% of world
population)
- density:
135/km2
10.
WORL
D BUS
I NESS
Features / consideration:
–
–
–
–
–
11.
Dollar / Euro ZONE
Business Culture
Law enforcement
Business Barriers
Business threats / opportunities
WORL
D BUS
I NESS CHALLENGES
F wh
e
c allen g es h
w ic
h wil l n eed
to e
b a
f c
e d by busin ess ife xp
a n din g
th eir n
i e
t rn ation alo p
e ra tion s:
• increased competition arising from a greater
freedom of world trade
• changing distribution of economic activity
across the globe
• acceptance of changes in corporate
structures in order to match the strategic
changes required to survive the global
marketplace
12.
WORL
D BUS
I NESS
o ssib
p
le P ROS
P ECT
h en
T
i te re stin g QUEST
I ON
[from an economic perspective]
is h
w a t th ea b
o ve m
e an s o
f rh
t e future :
• the 19th century was dominated by Great
Britain and Europe as colonial powers
• the 20th century by the USA as the great
economic power
• the 21st century will be controlled by Asia,
and China in particular
13.
ECONOM
I CI NTEGRAT
I ON
Economic (monetary) & Political
union
Common market
Customs union
Free trade area
14.
14.
ECONOM
I CI NTEGRAT
I ON
Description I .
Free Trade Area:
Type of trade bloc, a designated group of countries that have agreed
to eliminate tarrifs, quotas and preferences on most (if not all)
goods and services traded between them.
It can be considered the 1st - 2nd stage of economic integration
(Preferential trading area)
Customs union
Composed of a Free Trade area with a COMMON EXTERNAL
TARIFF. The participants set up common external trade policy,
but in some cases they use different import quotas.
Purposes for establishing a customs union normally include
increasing econ. efficiency + establishing closer political and
cultural ties between members
It is the 3rd stage of economic integration
15.
ECONOM
I CI NTEGRAT
I ON
Description I I .
Common / Single market
A single market is a type of trade bloc which is composed of a FTA (for goods)
with common policies on product regulation, and FREEDOM of
MOVEMENTof the FACTORS OF PRODUCTION (capital, labour) and of
enterprise and services.
The physical (borders), technical (standards) and fiscal (taxes) barriers among
the member states are removed to the maximum extent possible. These
barriers obstruct the freedom of movement of the four factors of production.
To remove these barriers the member states need political will and they have
to formulate common economic policies.
A common market is a first stage towards a single market, and may be limited
initially to a free trade area with relatively free movement of capital and of
services, but not so advanced in reduction of the rest of the trade barriers.
Economic union
16.
Type of trade bloc which is composed of a common market with a customs
union.
The participant countries have both common policies on product regulation,
freedom of movement of goods, services and the factors of production
and a common external trade policy.
EX
P ORT
h a t is?
W
–
w en o
h
y u tra d
e s
o m
e th in g o uto f h
t eo
c u
n try
. In
ec
o n omics
, an e xp
o rt isan yg oodo r o
c mm
o dity
,
tran sp
o rte d fro mon e o
c u
n try to an oth er o
c u
n try in a
leg itim
a te a
f s
h ion , typic
a lly fo r us
e n
i tra d
e .
h y to a im o
W
t
o rl d
w
busin ess
te rrito rie s?
h ye xp
W
o rt is
good
fo re c
o n omy /
o u
c
n try?
EMERG
I NG MARKETS
h a t ise e
W
m rg in g m
a rk
e te c
o n omy (EME)?
–
–
–
–
–
Em
e rging m
a rk
e ts are nations/markets with social or business
activity in the process of rapid GROW and
INDURSTRALIZATION.
Currently, there are 28 emerging markets in the world, with the
economies of CHINA and INDIA considered to be by far the two
largest.
The ASEAN–China Free Trade Area, launched on January 1,
2010, is the largest regional emerging market in the world.
An emerging market economy (EME) is defined as an
ec
o n
o my with lo w to midd
le p erca p ita in
co m
e .
• Such countries constitute approximately 80% of the global
population, and represent about 20% of the world's
economies. The term was coined in 1981 by the World Bank.
One key characteristic of the EME is an in
c re a s
e inb oth lo ca l
andfo re ign in
v e stm
e nt (p ortfo lio a nd dire ct). A growth in
investment in a country often indicates that the country has
been able to build confidence in the local economy
EMERG
I NG MARKETS [EM]
en te rin g
Sp
e cia l pro b
le ms e
r la te d o
t en te rin g EM
–
L cko f in
a
fo rm
a tio n p
( ro b le m
a tic d
a ta
o lle ctio n)
c
EM’s a
m rk
e t-p
o ten tia lan alysis:
–
–
–
–
–
–
–
–
M rk
a
e t SIZE
a rk
M
e t INTENSITY – estimates wealth, buying
power
a rk
M
e t GROWTHra te – GDP, energy
consumption etc.
a rk
M
e t CONSUMPTION CAPACITY – spending
capacity (% of middle class, core of buying power)
o mm
C
e rc ia l INFRASTRUCTURE – chanels for
com./distrib.
co n
E
o mic FREEDOM – free market principles
domination
a rk
M
e t RECEPTIVITY – market ‘openness’
o untr y RISK – of doing business
C
I ETNAM
V
• 80 mil l ion e
po p
le
• e st. 1945
• div ision n
i to 2 p
a rts (H
an oi /
a ig on – H
S
o C
h i Min h City)
• Vie tn am w
a r 1963 – 73
• M
e mb
e ro f ASEAN
• E
le m
e n tso f fre e tra d
e
prin cip
le s
• Dy
n amic
a lly d
e ve lo pin g
I ETNAM
V
I ETNAM
V
+
• competitive advantage:
p
e rsisten c
e , hardworking, humility
• education – better avg.in
south Asia (no illiteracy)
• not developed country
but growing rapidly (7-8%)
• relations (1/4 million of
V.studied in CZ –
backbone of V.economy)
22.
• bad infrastructure
• no history and exp. in
industry / engineering
• corruption
• QM missing => low VA
industries, no experience
• business culture (no longterm relations / businesses)
• very low law enforcement
• not fully liberalised envi
I ETNAM
V
Business doing
– Patience, long meetings / negotiations
– No long contracts – chaos: changing mind,
no reliability in European understanding (effort
to satisfy)
– No business drive in Euro perception
(enq./offers – lengthy via email)
– Personal contacts necessary / local
– No win-win (‘loss of face’ danger)
– Business cards handling
– ‘YES’ even if meant NO
I ETNAM
V
Business doing
CH
I NA
CH
I NA
+
• hard-working
• education – in towns and
industry areas
• no-VA parts (or
normalised) very cheap
• massive gov. investments
in infrastructure
• railways net / HSR (but
due to industrialization too
busy)
26.
• rising prices
• only large series /
payments in advance
• control (necessity of
Chinese citizen in the
business) - not fully
liberalised envi
• quality instability (no
sustainable Q)
• fractionalism
• no ENVI issues / labour
conditions
CH
I NA
Business doing
–
–
–
–
–
Smiles not usual in business
Nepotism, preference of family members
Patience – time to succeed
Seniority respect
Double check of mutual understanding /
samples precision etc.
– Contract – precision (parameters, samples
– signed etc.)
TA
I WAN
TA
I WAN
– Republic of China
– Capital: Taipei
– Population: 23
million
- Density: 668 /km2
TA
I WAN
+
• extremely hard-working
• good knowledge of English
(EU/USA education)
• industrial tradition (cca 30
years)
• no-VA parts (or normalised)
very cheap
• flexibility & professional
approach (enq./ sampling /
quality)
• ISO norms not a formality
• good infrastructure: airport /
HSR
• fully free market
30.
• raw materials import –
dependence on China
• changing EUR / USD
• status manipulation +
pretending “made in
Taiwan” (PRC reality)
• frequent typhoons
(supplies postponing)
TA
I WAN
Business doing
–
–
–
–
–
–
Professional, very polite
Business cards handling
Quick response / sticking on agreed
Willingness to sort out the claims
No need to double-check understanding
In machine production – taking shoes off in
offices
– Strong green teas at business meetings
TA
I WAN
Business doing
IN
D IA
IN
D IA
– Capital: New Delhi /
largest: Mumbai
– Language: Hindi,
English
– Population:
1,118,521,000
- Density: 361 /km2
- GDP per capita:
3,100 USD
IN
D IA
+
-
• good education, English
• distinctive ability
• bank sector highly
developed
• secluded economy
(extremely high import
taxes)
• large market with over
1mld. people / growing
purchasing power
• changing EUR / USD
• productivity
35.
IN
D IA
Business doing
– English
– Demanding negotiations, long
(several hours)
– Half-truths common
– Compromise necessary (Indian bargaining) + keep the positions
(manipulation resistance)
– Agreements – sticking on
INTERNATIONAL BUSINESS RELATIONS
Thank you for your attention
Ing. Pavla Břečková, Ph.D.
[email protected]