1. An Overview of International Business.pdf - An Overview...

An Overview of International
Business
Introduction
GIM | PGDM 20-21 | Term V
Sangram Sinha

“ Your own mind is a sacred enclosure into
which nothing can enter except with your
permission”
- Arnold Bennett

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DO
COUNTRIES
STILL
MATTER ?
• Notion of sovereignty
• Concept of Nation + State = Nation-
State
• (People) (Land)
• Olsonian ”bandits”
• National Governance
• Why do Nations compete ?
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What is International Business ?
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8

Ancient Time
International Trade
• 3000 BCE : Sumerians & Egyptians with Harappan
civilization
• Evolution of Silk route opened by Han Dynasty (
206 BC – 220 AD)
• From Greek Civilization to the fall of Roman
empire in 5 th century – Europe traded spice with
Far East
• Sogdians ruled East-West trade route from 4 th to
8 th century AD
• Vikings & Varangians traded from 8
th
to 11
th
century and sailed through Scandinavia, Western
Europe & Russia
• Indian export of spices got mentions in history
post 850 AD.
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Middle Age International Trade
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Vasco da Gama started European spice
trade in 1498
1498
Dutch expedition (1595) & Dutch East
India Co. (1602)
1595
Dutch East India Co. goes bankrupt
1799
Opium War (1840) – Britain invades
China
1840
Late entry of Americans –
Massachusetts trading with Sumatran
in early 19th century. Siamese
American treaty (1833) calls for free
trade (except rice & arms)
early 19th century
Free Trade Agreement (1860) between
Britain & France under the presidency
of Napoleon III
1860

Modern Age
International
Trade -
Political
Events
• Treaty of Westphalia (1648) : Ending European War
• World War I (1914 – 1918 )
• Bolshevik Revolution (1917): Dismantling Tsar / USSR
• Treaty of Versailles / ILO (1919)
• World War II (1939- 1945)
• OEEC (1949) → OECD (1961)
• Council for Mutual Economic Assistance /COMECON (1949)
• 3 Big Groups
• BENELUX + France-Germany + Italy → ECSC (1951) →
EEC (Treaty of Rome, 1957)
• UK , Swiss, Nordic countries & Austria → Free Trade Area
• Spain, Portugal, Greece, Turkey → remained loose
• Tax Heavens : Andorra, Monaco, Liechtenstein, Virgin Islands
• Berlin Wall breakdown (1990)
• European Union → BREXIT (1918 – 19)
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Evolution of Trade
Theories
• Mercantilism (pre -16 th Century)
• Nation’s wealth = Accumulated treasure
• Gold & Silver → Currency
•