Strategy carried out in two or more countries.
Managers develop international strategies to:
allocate scarce resources and configure value-adding activities on a worldwide
participate in major markets
implement valuable p
Overview on Globalization of Markets
Globalization and technological advances have altered the international business
landscape more than any other trends.
In this class, globalization refers to the interconnectedness of national economies and
The Nature of International Business
All value-adding activities including sourcing, manufacturing, and marketing can be
performed in international locations.
International trade can involve products, services, capital, technology, know-how, and
The Four Risks of International Business
Essentials for Understanding Culture
Culture: The learned, shared, and enduring orientation patterns in a society. People
demonstrate their culture through values, ideas, attitudes, behaviors, and sym
FOUR MAJOR PARTICIPANTS IN INTERNATIONAL BUSINESS
1. Focal firm initiator of an international business transaction; e.g., MNEs and SMEs.
2. Distribution channel intermediary a specialist firm that provides distribution,
logistics, and marketing services i
TECH 4115, Global Technology
Group Research Project Presentation Guidelines
AFTER THE NO SHOW DEADLINE, students will be assigned a group and given a
country their group will research. Answer fully each of the sections below giving
examples. Use images an
National Capital: Hanoi
Mainland Territory: 331,211.6 sq. km, making
it slightly larger than New Mexico
Population: 85.79 million inhabitants (2009)
Cambodia, Laos, China
So You Want to do Business in
Brazil is one of the fastest emerging
countries in South America
During the 1st two centuries Brazil gained
attraction of other powers because of its
natural resources and land.
Brazil was claimed by Portugal in the 1500.
Kind of hello and goodbye,
literally meaning peace or safe
Stretches a distance equivalent to 1/8th of
the earths circumference.
Jakarta is the capital and located on the
island of Ja
TECH 4115, Global Technology
Individual Written Research Project Paper Topics and Guidelines
Research Topics - Please pick one of the following and email your choice to Dr.
Garsombke through the D2L Course Email function.
Type 4115 Research Topic in the e
Inappropriate Corporate Conduct Abroad
Examples: Firms may:
Falsify or misrepresent contracts or official documents
Pay or accept bribes, kickbacks, or inappropriate gifts
Tolerate sweatshop conditions or abuse employees
Mercantilism and Neomercantilism
Mercantilism: A belief popular in the 16th century that national prosperity results from
maximizing exports and minimizing imports.
Today, some argue for neomercantilism - the idea that the nation should run a trade
The New Global Challengers
Some 100 companies from emerging markets are poised to become important 21stcentury multinationals. Examples:
Brazil: Embraer, Sadia & Perdiago, Natura Mexico: America Movil, Grupo
India: Ranbaxy, Infosys, Tata Tea, WI
Levels of Regional Integration
Free trade area: Simplest, most common arrangement. Member countries agree to
gradually eliminate formal trade barriers within the bloc, while each member maintains
an independent international trade policy with countries o
Realities of Doing Business in Russia
High rate of piracy in software, music, DVDs, other goods
Anti-piracy laws and law enforcement are weak.
Obtaining business licenses requires bribing officials.
SMEs may spend 1/5 of their net income on bribes.
Governments intervene in trade and investment to achieve political, social, or economic
Governments impose trade and investment barriers that benefit interest groups, such as
domestic firms, industries, and labor unio
The Six Tasks of Global Market
Opportunity Assessment (GMOA)
1. Analyze organizational readiness to internationalize
2. Assess the suitability of the firms products and
services for foreign markets
3. Screen countries to identify attractive target markets
Foreign Market Entry Strategies
Importing or global sourcing: Procurement of products and services from foreign
Exporting: Producing products or services in one country (often the producers home
country), and selling and distributing them to cu
Challenges of International
Human Resource Management
Recruiting, managing, and retaining human resources at a firm with extensive global
operations are especially challenging.
For example, German firm Siemens has more than 400,000 employees in some 190
International Financial Management
It is the acquisition and use of funds for cross-border trade, investment, and other
MNEs must carry out transactions in a multitude of foreign currencies and diverse
environments characterized b
Standardization and Adaptation
Adaptation: Modifying elements of the marketing program to accommodate specific
customer requirements in individual foreign markets. E.g., industries in auto making,
Standardization: Efforts to make
Also called global outsourcing, global procurement, or global purchasing; it amounts to
Involves a contractual relationship between the buyer and the foreign supplier in which
the performance of a specific value-chain activity
FDI and Collaborative Ventures
Foreign direct investment (FDI): Strategy in which the firm establishes a physical
presence abroad by acquiring productive assets such as capital, technology, labor, land,
plant, and equipment.
Cross-border contractual relationship: Entering a formal agreement with a distributor,
joint venture firm, or other partner abroad. Often involves granting permission to use
intellectual property to a foreign partner.
Currencies and Exchange Rates
More than 150 currencies are in use worldwide.
Currency regimes are simplifying. E.g., the euro in Europe; the dollar in Panama and
Most currencies are not very convertible. The dollar, yen, pound, euro are hard