1. introduction to international business

7/27/2019 1. Introduction to International Business

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conducts business transactions for goods

& services in only one country


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conducts business transactions for goods

& services across national boundaries


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foundation of world trade

mechanism linking one country to anotherby moving:

raw materials

finished goods

specialized services


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adapt to country differences

face a greater & complex range of problems

work within limits imposed by government

intervention & global trading systems

require converting funds & being susceptibleto fluctuations in currency rates


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improvement in communications technology

improvement in transportation services


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liberalization of trade restrictions

development of support services

increased global competition


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rise in democracy in the world

popular culture

English as an international language


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Profits = profit potential

Customers = new markets

Suppliers = needed raw materials

Capital = financial resources

Labour= lower labour costs


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trade barriers

language barriers

cultural barriers

piracy

differences in businessprocedures & standards

lack of skilled labour


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exchange of goods &

services by different

countries


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measure of economic well-being based on

the ability of people to buy the goods &

services they desire


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shift towards a more

integrated & interdependent

world economy


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Globalization leads to growth

& growth reduces poverty--- Jagdish Bhagwati


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planet is shrinking

outsourcing

anxiety created . . . transitions, layoffs,wage pressures


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stronger need to:

invest in training & upgrading skills

pursue job creation


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country in which an international company

is headquartered


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Philips . . . The Netherlands

BASF . . . Germany

Nestle . . . Switzerland

Sony . . . Japan

Gillette . . . United States

Michelin . . . France

Samsung . . . Korea

Proctor & Gamble . . . USA

Canon . . . Japan

Bayer . . . Germany

Boeing . . . USA


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foreign country inwhich an international

company operates


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someone who has left his/her home

country to live or work abroad, either for a

long period of time or permanently


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Confusion

state of being anxious, uncomfortable

and in need of information & advice


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Small Victories

daily interactions bring somesuccesses

and form an initial confidence in daily

affairs


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Honeymoon

time of wonderment, cultural immersion& infatuation


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Irritation & Anger

time when negatives may overtakepositives & the new culture becomes

a subject of criticism


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Reality

when a rebalance occurs, and one is

able to enjoy the new culture whilerecognizing less desirable elements


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cultural awareness & sensitivity

appreciation & respect for different lifestyles

high international awareness

desire to live &

work abroad


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active encouragement &

support from family, friends &

company

personal adaptability &

flexibility

technical competence in ones

job

leadership ability &

interpersonal skills


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level of sensitivity

experience with diverse backgrounds

ability to view different perspectives

ability to learn new languages

not aggressive compromise

peacekeeping


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maintaining & developing of an

organizations production or market

interests across national borders with either

local or expatriate staff


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process of running a multinational business

body of skills, knowledge & understandingrequired to manage cross-cultural

operations


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preference of an

employer to use its

own workers, both

at home & abroad


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preference of employer to use natives of

the host country to manage operations

there, but home-country residents to

manage home country


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preference of an employer to hire only the

best managers, regardless of their

citizenship


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preference of an

employer to employmanagers from a

variety of countries

in a region


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recruitment, retention & utilization of global

human resources

1. introduction to international business

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