Transcript International Business

MGT 464
International Business
Management
Professor Stone
Fall 2010
International Business: Strategy, Management, and the New Realities
Important Information
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Office: JH 4222
Phone: 805.660.8483
Office Hours: Mon 2-3 and 6-7; Thu 1-2
Text: Cavusgil, Knight & Riesenberger, 2008.
International Business: Strategy, Management
and the New Realities. Pearson. ISBN 978-0-13173860-7
International Business: Strategy, Management, and the New Realities
Class Content
• Weekly Quizzes
Chapter Reading and Geography
• Int’l Business Research Paper
Team project
• Int’l Business Paper Presentation
Team project
• Cases and Discussion Answers
4 at 3% each (2pages max.)
• Midterm Evaluations
2 m-c, non-cumulative at 15% each
• Final Evaluation (cumulative essay)
• Attendance, Particip. Instructor Eval.
7%
25%
5%
12%
30%
15%
(6%)
International Business: Strategy, Management, and the New Realities
Research Paper Overview
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4-person groups
Identify an international business opportunity (industry)
Select two potential host countries in which to operate
Evaluate potential and risk of the two countries
Select one country
Describe entry steps and considerations for your business in
that country.
Paper length approximately 30 pages, with MLA-style
references.
Present your results and conclusion at the end of the semester
International Business: Strategy, Management, and the New Realities
Research Paper Milestones
Sept. 2
Team formation in class
Sept. 16
Turn in proposal
Oct. 7
Turn in detailed outline
Nov. 11
Turn in first draft for feedback (optional)
Dec. 2
Team presentation
Dec. 9
Turn in final report
International Business: Strategy, Management, and the New Realities
Chapter 1
Introduction to
International Business
International Business
Strategy Management & the New Realities
International Business: Strategy, Management, and the New Realities
The Internationalization of Business
• Companies conduct value-adding activities on a
global scale, primarily to organize, source,
manufacture, and market
• A “level playing field” has made international
activities appealing to all types of firms- large
and small; manufacturing and service sectors
(e.g. banking, transportation, engineering and
design, advertising, and retailing). REALLY?
International Business: Strategy, Management, and the New Realities
The Nature of International Business
• All value-adding activities including
sourcing, manufacturing, and marketing,
can be performed in international locations
• The subject of cross-border trade can be
products, services, capital, technology,
know-how, and labor
• Firms internationalize via exporting,
foreign direct investment, licensing,
franchising, and collaborative ventures
International Business: Strategy, Management, and the New Realities
Globalization of Markets – a Macro Concept
Ongoing economic integration and growing
interdependency of countries worldwide.
• Integration is central to globalization,
which has resulted in the widespread
diffusion of products, technology, and
knowledge worldwide, regardless of where
they originate.
International Business: Strategy, Management, and the New Realities
Dimensions of Market Globalization
• Greater integration and interdependency of
national economies; leading to freer
movement of goods, services, capital, and
knowledge
• Rise of regional economic integration blocs
• Growth of global investment and financial
flows
• Convergence of consumer lifestyles and
preferences
• Globalization of production
International Business: Strategy, Management, and the New Realities
World Trade Is Growing Faster than GDP
Rapid integration of world economies is
fueled by factors such as the decline of
trade barriers, e.g. tariffs, liberalization of
markets, privatization and the economic
vitality of emerging markets. REALLY?
International Business: Strategy, Management, and the New Realities
Comparing the Growth Rates of World GDP
and World Exports
Data are 4 years old.
What’s been happening
Since 2006?
Leading Countries in International
Merchandise Trade, Total Value
Data are 9 years old.
What’s been happening
Since 2000?
Leading Countries in International
Merchandise Trade, as % of Nation’s GDP
What data does this
Chart represent? What is
Date of this chart?
Foreign Direct Investment (FDI) Inflows into World
Regions (in Billions of U.S. Dollars per Year)
Data are 5 years old.
What’s been happening
Since 2004?
Leading Countries in International
Services Trade, Total Value
What data does this
Chart represent? What is
Date of this chart?
Leading Countries in International
Services Trade , as % of Nation’s GDP
What data does this
Chart represent? What is
Date of this chart?
Why Study International Business?
• A facilitator of the global economy and
interconnectedness
• A contributor to national economic wellbeing
• A competitive advantage for the firm
• An activity with societal implications
• A source of competitive advantage for you
International Business: Strategy, Management, and the New Realities
An International Business Student Must…
• Understand cultural differences
• Know why firms in different countries trade
• Know how and why governments control
international trade
• Know how to analyze a country for its
potential for trade
• Know how to create an international
business opportunity
International Business: Strategy, Management, and the New Realities