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International Business: Session Time Topics

This document provides an overview of international business. It discusses factors that affect international business such as technological developments, trade barriers, and limitations of domestic markets. It also describes different types of international business organizations and the entities that facilitate international business. Finally, it examines competitive environments and how they influence a firm's process of internationalization.

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Harsh Ahuja
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46 views22 pages

International Business: Session Time Topics

This document provides an overview of international business. It discusses factors that affect international business such as technological developments, trade barriers, and limitations of domestic markets. It also describes different types of international business organizations and the entities that facilitate international business. Finally, it examines competitive environments and how they influence a firm's process of internationalization.

Uploaded by

Harsh Ahuja
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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International Business

Session One Time 1000 -1330 Topics


Relevance in present day environment Influences on international business Types of International Business Organizations facilitating international business

Levis

Objectives
To define International Business

To understand factors that affect international business

Organizational compulsions of international expansion


Spreading of risk: Periodic cyclic downturns and upward swings To strengthen bottom line: Limitation of domestic population To strengthen resource base: Increased in inexpensive resource base Personal ambitions of the policy making body/individual: Bias

Bandwagon Effect

Denial of First Mover Benefits to the Competitors

Influences on International Business


Technological developments and their rapid diffusion at global scale Dismantling of trade barriers

Emergence of business facilitators


Increasing limitation in terms of growth presented by domestic markets

Conducting of International Business


Goods

Services
Portfolio Capital Direct Investment

Exports and Imports


Visible exports and imports
Service exports and imports
Tourism and Transportation Performing Services Assets Utilization

Portfolio Capital
Marketable Securities Non - Marketable Investments

Direct Investments

Entities Nomenclature Commercial Transactions


MNC MNE TNC METNAT

Global and Multi Domestic Organizations


Organization can be both Global in some operational domains and multidomestic in other operational domains

Environments
Internal environments
External environments
Proximate environments Distant environments Constituents of external environments

Environment & International Business


Geography History Psychology Economics Social Sciences Legal system Political system

The Perspective of Competition

Competitive Environment
Every firm operates within its competitive environment Competitive factors
1. Product
Homogeneous
Compete more on price
Strategies emphasize cost saving by Superior equipment, technology, economies of scale Steel

Differentiated
Shakira and Pt. Ravi Shankar

Innovative

2. Organization Size
Larger the organization larger the resources relative to competitors
>Coke and Royal Crown

3. Market Size
Larger domestic market size invites competition less incentive for going international
>Whirlpool from US

Smaller market size needs expansion strategy and investment in overseas markets
> Electrolux from Sweden

4. Nature of Competition

International
Boeing and Airbus

Local
Wal Mart in India competing with next door grocer

Firm Process of Internationalization


Innovative Related Models
Sequential development
No regular export activity Export through independent representatives or agents Establishment of an overseas sales subsidiary Overseas production facility

Psychic Distances Uppsala Models


Totally disinterested firm Partially interested firm Exploring firm The experimental firm, undertaking exports on experimental basis Experienced small exporting firm Experienced large exporting firm

Leapfrogging Extent and intensity of commitment Transferability of experiential knowledge Collaborative arrangements

Environmental Forces Complicating Decision-making in International Business

Global Versus Nationally Responsive Practices

Country Versus Company Competitiveness Sovereign Versus Cross National Policies

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