Chapter 20- Accounting & Finance in International Business
- Tax rules vary significantly by country and accounting standards reflect those rules
- An effort has been made to standardize the system led by the IASB
- The IASB has 16 me
Chapter 13- International Strategy
Strategy is how you get there. How you achieve those objectives?
What is Strategy?
- Strategy is the plan developed and executed by management to attain the firms
- Strategy is developed in relation to a few factor
Chapter 15- Global Structure Division
Basic Entry Decision
- Which Market to enter?
o Market evolution protocol
- When to enter?
o First mover vs. pioneering costs
Knowing you want to go into the market, but the time isnt right. So you have
5. The Custom Bike Company has set up a weighted scoring matrix for evaluation
of potential projects. Below are three projects under consideration.
a. Using the scoring matrix below, which project would you rate highest?
b. If the weight for Stron
Chapter 10- Foreign Exchange Market
Foreign Exchange Market
- Foreign exchange (Forex) refers to the changing of one currency into another.
- The Exchange Rate refers to the conversion rate from one to another.
- The Forex market allows both the sale/trad
Chapter 12- Global Capital Market
How Capital Markets work
- Investors (Companies, Individuals, and Institutions) looks to make additional return
on their capital. They go to intermediaries to facilitate this.
- Market Makers are the intermediaries and ar
Chapter 11- Global Monetary System
Global Monetary System
- The Global Monetary System is our reference term for the institutional
arrangements that govern exchange rates.
- Weve learned that the markets control the values of currencies and theyre
Chapter 9- Regional Economic Integration
Progressive integration model
- Free Trade Area: barriers to trade are removed for members (e.g. removal of
- Customs Union: adds a common external trade policy
- Common Market: adds the free movement of pr
Chapter 14- International Organizational Structure
What is Org Architecture?
- Organizational Architecture refers to the totality of a firms organization, including formal org structure,
control systems, incentives, org culture, processes and staff.
Chapter 19- Global Human Resources Management
- HRM refers to the activities an organization carries out to use its personnel
effectively. These activities include:
o Human Resource Strategy (Development and Implementation)
Given the basic information about the XYZ operations, the recommended option is #2
manufacture product in the US and export the product to the EU directly or indirectly, and set up
a wholly-owned subsidiary to do marketing. There are 3 main reasons for th
1. Foreign Direct Investment: when a firm invests directly in facilities to produce a market
or a product in a foreign country
Transportation costs and tariffs imposed on imports explain why firms prefer FDI
Maintain control over technolo
Group Project: Expected Outcomes
October 14, 2015
The topic of our group is Differences in Culture. We have initially divided the work by sub-topic:
a. Culture and i
September 28, 2015
It is unarguable that national differences in political economy affect countries economic
performance (Gross Domestic Product per capita), the cost of doing business, and countrie
Chapter 17- Global Production, Outsourcing & Logistics
Outsourcing- where the production is done.
Boeing Case Study: Read this case study (might be on the Final)
- Aircraft manufacture
- Boeing 3 years ahead schedule
- Sent the products over seas to manuf
Chapter 18- Global Marketing and R & D
Has Globalism made convergence real?
- Market Segmentation: the identification of distinct groups of consumers whose
purchasing behavior is distinct.
- We segment markets differently: geography, demography, socio-cul
Comparative advantage v absolute advantage (chapter 6)
Mercantilism (chp 6)
Year the euro came into place? 1999
How many members in the EU? 28
What is the EU?
What is a Joint venture?
o When two companies come together and become a new entity
Chapter 8- Foreign Direct Investment
Buy or Build?
- Foreign Direct Investment is normally tied to corporate expansion
- Corporate expansion into a new market triggers the question of acquisition or
development (known as greenfield or brownfield [redevelo
Chapter 7- Political Economy 2
Politics and Trade
- As trade becomes more integrated and countries more interdependent then it also
becomes a tool for political influence.
- Indeed, so much so that we can see political positioning or economic sanctions as
Chapter 14 Outline - Exporting, Importing, and Countertrade
This chapter focuses on how to export
Volume of global exporting has increased as it has become easier over time
Still remains a challenge for many firms
Smaller firms find it in
The Determinants of Economic Development
The political, economic, and legal systems of a country can have a profound impact on
the level of economic development of a country
The more developed, the more people want to do business there
Opening Case - The Polish Surprise
In the financial crisis of 2008-2009, Poland was the only country in the EU that
experienced economic growth
After four decades of communist rule, in 1989 Poland elected its first democratic
Chapter 10 Outline
Foreign Exchange Market is a market converting the currency of one country into that
of another country
Exchange Rate is the rate at which one currency is converted into another
The Functions of the Foreign Exchange Marke
Chapter 13 - Entering Foreign Markets
Two closely related topics
The decision of which foreign markets to enter, when to enter them, and on what
The choice of entry mode
Which Foreign Markets?
The choice must be based on an assessme
Chapter 12 - The Strategy of International Business
Opening Case - Ikea
IKEA has grown to become the largest furniture retailer in the world
300 stores in 26 different countries
Subtle differences between each country
Applications to local market (e.g
Ethics, Corporate Social Responsibility, and Sustainability - Making Toys Globally
In many countries, there is protection to ensure childrens toys are safe
The U.S. Consumer Product Safety Commission regularly issues recalls of toys
Chapter 8 Outline - Foreign Direct Investment
FDI occurs when a firm invests directly in facilities to produce or market a product in a
Once a firm undertakes FDI, it becomes a multinational enterprise
There are two main fo
Chapter 11 Outline
International monetary system refers to the institutional arrangements countries adopt
to govern exchange rates
Floating Exchange Rate is a system under which the exchange rate for converting one
currency into another is
Differences in Culture - Business Culture in China
The first McDonalds opened in Beijing and it did extremely well there
After 2 years of their 20 year lease, the government said that they had to vacate the
They took the government t