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IBT.docx - INTERNATIONAL BUSINESS AND TRADE INTERNATIONAL...

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INTERNATIONAL BUSINESS AND TRADEINTERNATIONAL BUSINESS AND TRADETackle the differences of each country in doingbusiness.INTERNATIONAL BUSINESS-Exchange of knowledge, goods and services,and resources among individuals andbusinesses in two or more countries.-Transaction that are carried out acrossnational borders to satisfy the objectives ofindividuals and organization-All commercial transactions that take placebetween two or more countries.1 Private and Government2 Sales3 Investments4 Logistics5 TransportationNATURE-Accurate information and timely-The size of the international businesssize matters in business industry-Market segmentationAgriculturalIndustrialVIETNAM – do not give theiragricultural market to their investors orinternational business trading-International markets have more potential thandomestic marketsApply on small countries, like Singapore.They are open for foreign parties orinternational trading.SCOPE-International marketing-International finance and investments-Foreign exchange-Global HRFEATURESinooffer ng countries in int’l trading-Large scale operationsallotted by investmentslike in POGO-Integration of economiesalliances andsegregation of countries-Dominated by developed countries and MNC’s-Benefits to participating countries-Keen competition-Special role of science and technology-International restrictionsIMPORTANCE1.Earn foreign exchange2.Optimum utilization of resources3.Achieve its objectives4.To spread business risks5.Improve organization’s efficiency6.Get benefits from government7.Expand and diversify8.Increase competitive capacityIB APPROACHES1 ETHNOCENTRIC APPROACH-Under this approach, target market is owncountry. Excessive production will export dueto change in customer taste preferences.2 POLYCENTRIC APPROACH-Under this approach, the companiescustomize the marketing mix to meet thetaste, performance and needs of thecustomers of each international market.3 REGIOCENTRIC APPROACH-Under this approach, the companyoperating successfully in a foreign countrythinks of exporting other neighbouringcountries of the host country.-At this stage, the concerned subsidiaryconsiders the regional environment (such aslaws, culture, policies etc.) for formulatingthe policies and strategies.4 GEOCENTRIC APPROACH-Under the approach, the company analysesthe tastes, preference and needs of thecustomers in all foreign markets and thenadopts a standardized marketing mix for allthe foreign marketsPROBLEMS-Political factors-High foreign investments and high cost-Exchange instability-Entry requirements-Tariffs, quota etc.-Corruption and bureaucracy-Technological policy-Quality managementENTRY STRATEGY1.EXPORTING-Direct-Indirect2.LICENSING-Agreementlicense from regulatory body tooperate their business-Patent, trademark, copyright, technology,production processes, and product-Licensee’s fee3.FRANCHISING-By franchisers to franchisee-Usage4.FOREIGN ASSEMBLYambassadors-Subsidiary-Local assembly5.TURNKEY OPERATION

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Term
Fall
Professor
BUSINESS
Tags
International Trade, Globalization, World Trade Organization

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