Cross-cultural literacy - an understanding of how cultural differences
across and within nations can affect the way in which business is
important to success in international business
There may be a
Question: What actions can managers take to compete more
effectively in a global economy?
Managers must consider
the benefits of expanding into foreign markets
which strategies to pursue in foreign markets
the value of collabor
B ASIC ENTRY DECISIONS
Question: What are the basic entr y decisions for firms
A f irm expanding internationally must decide
w hich markets to enter
w hen to enter the
Question: What type of firm benefits from expor ting?
Question: What do firms that want to expor t need to do?
F irms wishing to expor t must
i dentify export opp
I n todays global economy, firms must decide
STRATEGY, PRODUCTION, AND
w here to locate productive activities
w hat the long-term strategic role of foreign pro
Marketing Strategy to promote the sale of goods
International Marketing Concept of creating global or
dif ferent messages about products depending on where sold
Options used to increase sa
IB and Terrorism
Presented to UT (February 24, 2012)
Foundations of International Business - IB 320F
Dr. Elizabeth Danon-Leva
the premeditated, systematic threat or
use of violence
WSJ - April 14, 2000
Who's Afraid of Globalization?
By Gregg Easterbrook, a senior editor of the New Republic and author of "Beside
Still Waters: Searching for Meaning in an Age of Doubt" (Quill, 1999).
An awful lot is going on with this we
Made in America: Trend against outsourcing
brings jobs back from China
From Rock Center with Brian Williams
Sat Jan 14, 2012 9:59 AM EST
Manufacturing is now underway at Lincolnton Furniture in North Carolina.
By Sopan Deb
The United States ma
1. Which one of the following is not
considered when looking at the political
economy of a country?
A. Written Laws
B. Enforcement of Laws
C. Whether the society is a Free Market
D. If the society is Totalitarian
E. Geographic Location
2. Which of
1. The stock of foreign direct investment refers
the total accumulated value of foreignowned assets at any time.
the number shares of the foreign firm
held by local investors.
the amount of FDI undertaken over a
given time period.
Question: What is the political economy of a country?
A countrys political economy refers to its political, economic, and legal
These systems are interdependent, and interact
What have been stages in the evolution of the
international monetary system?
What are different systems used to manage
exchange rates today?
How did/does exchange rate adjustment occur
under various system
FIXED VS. FLOATING EXCHANGE
EXCHANGE RATES SINCE 1973
S ince 1973, exchange rates have become more volatile and
less predictable because of
the oil crisis in 1971
the loss of confidence in the dollar after U.S. inflation jumped
CULTURE AND THE WORKPLACE
1. Power distance - how a society deals with the fact that people
are unequal in physical and intellectual capabilities
2 . Individualism versus collectivism - the relationship between
the individual and his o
Is it relevant/possible to attempt ethical
decision-making in a multi-cultural
What are key issues with ethical dimensions
in international business?
What are major approaches to
Philosophical Approaches to Ethics
There are several approaches to business ethics including
the Friedman doctrine
the righteous moralist
the nave immoralist
Utilitarian and Kantian
What are the major theories which explain trade between countries?
How have these theories changed over time and why?
Which trade theories explain the patterns of trade we see today and
what trade p
The Pattern of International Trade
International trade theory helps explain trade patterns
Some patterns of trade are fairly easy to explain - it is obvious why Saudi
Arabia exports oil, Ghana exports cocoa, and Brazil exports coffee
But, why does Switzer
Influences on Trade and
Trade Policy, GATT, and
What are the reasons countries try to regulate
What are some of the mechanisms governments
use to control/regulate intern
Development of the World Trading System
Since World War II, an international trading framework has evolved to
govern world trade
in its first fifty years, the framework was known as the General Agreement
on Tariffs and Trade (GATT)
Since 1995, the framewo
Question: W hat is foreign direct investment?
F oreign direct investment (FDI) occurs when a firm invests
directly in new facilities to produce and/or market in a
foreign countr y
O nce a firm undertakes FDI it becomes a m
L EARNING OBJECTIVES (PART 1)
R egional economic integration - agreements between
countries in a geographic region to reduce tarif f and non-tarif f
barriers to the free flow of goods, ser vice
THE AMERICAS REGIONAL
NAFTA, FTAA, AND
L EARNING OBJECTIVES NAFTA/FTAA
W hat e vents/situations led up to NAFTA?
W hat are the basic characteristics of NAFTA ?
W hat has been the i mpact of NAFTA on the US
W hat i
The Foreign Exchange
Question: What is the foreign exchange market?
T he f oreign exchange market is a market for converting the
currency of one country into that of another country
Question: What is the exc
EXCHANGE RATE FORECASTING
Question: Should companies invest in exchange rate
forecasting services to help with decision-making?
T he e fficient market school - forward exchange rates are the
best predictors of future spot exchange rates
T he opening case explores the implications of changing
currency values on the profits of Australian retailer Billabong.
Billabong relies on the U.S. market for a significant share of
its total sales ( 50% ). Consequently, the company
D eterminants of Economic
The Political Economy can have a big effect on
the level of economic development and hence
attractiveness of a country as possible location
for sales or production.
D ETERMINANTS OF ECONOMIC
DEVELOPMENT HOW DO WE MEA