Cba 300 Ch 1 Notes

CBA 300 fraction 01 ? Dr. Sam Min CBA353 ? Office Hours Friday 800am 1000am ? Read your textual matter book first, come & take nones, and read newspapers ? Tests ar straightforward, text, weakly reading, and lectures analyze 1 September 14 Chapters 1, 2, 3 TEST 2 October 5 Chapters 4, 5, 6, 7 TEST 3 October 26 Chapters 8, 9, 10, 11 TEST 4 November 16 Chapters 12, 13, 14, 15 FINAL Final Week Chapters 16, 17, 18 Assignments & in-class activities Total (50 points) (50 points) (50 points) (50 points) (50 points) (30 points) 280 points CBA 300Section 01 The grading system will be as follows Total points Possible 280 252 and more = A 224 to 251 = B 196 to 223 = C 168 to 195 = D Less than 167 = F 2 3 ASSIGNMENTS 1-5 Please read any condition of your interest, which is related to International Business and (1) summarize the article (1/2 page) and (2) discuss what you learned from reading the article (1/2 page). Do not write more than 1 page. Use 12 font size, 1. 5 spaced, 1-inch ma rgins, and Times New Roman. This assignment is worth maximum 4 points. Due is on each exam date 4 Chapter 1 The Challenging World of International Business International Business 13e by Ball, Geringer, McNett, and Minor 5 Why you need world(a) line of descent sight? Having a conflicting perspective gives you an advantage not only for doing line of credit outside U. S. just now house servantally, where we have the most diverse fiat in the world. Carlos Gutierrez, the CEO of Kellogg & US 35th Secretary of Commerce 6CEOs of Fortunes larges American corporations powerfully believe (1) An internationalistic orientation should be an important part of college business education (2) International business skills and knowledge were important not merely for promotion to senior executive positions, but as well as for fight to entry- take positions, and crossways a broad array of functional as well as cross-functional areas (3) The above twain points are even more important for those anticipating international activities increase in the next five years. 7 My suggestions 1) Take IB course(s) (2) Consider going overseas (exchange program, intern, English teacher, volunteer, mission, and so on ) (3) Learn foreign language 8 Topics What is international business? IB Concepts and seven dimensions for globalizing a business What is different about international business? evolution of international firms and IB What is globalisation? The drivers of globalization 9 What is International Business? International Business (IB) any business transaction across national b hostelrys Trade in goods Cross-border services ? consulting, advertising, egal, financial, accounting ? tourism, banking, communications/media, construction management, etc. Company activity inputs may involve IB activity even if outputs do not Firms revenues may come entirely from the home farming Key raw materials, knowledge, processes may come partly or entirely from other countries Concepts of International Companies A Multidomestic Company has multi-country affiliates, each of which formulates its own business system based on perceived market difference A Global Company attempts to standardize and integrate operations worldwide in all functional areas. 1 The 7 Dimensions for Globalizing a Business 1. 2. 3. 4. 5. 6. 7. 1-12 crossroad Markets Promotion Where value is added Competitive strategy Use of non-home-country personnel Extent of global ownership in firm What is Different about International Business? International Business deals with 3 environmental forces 1. house servant 2. Foreign 3. International Domestic Business deals with the domestic market Butmay face foreign competition in domestic market 1-13 Why is International Business Different? Forces in the milieu ?environmental forces can be classified as external or internal. External forces are uncontrollable, but perhaps can be influenced by mgmt. Internal forces are controllable by mgmt, but not completely. 14 External Forces Competitive Kind, number, location Distributive For distributing goods and services Economic GNP, unit labor cost, ain consumption expenditure Socioeconomic Characteristics of human population Financial Interest rates, inflation rates, taxation 15 External Forces, contd. Legal Laws governing how international firms must operate Physical Topography, climate, and natural resources Political Forms of government, and international organizations Sociocultural Attitudes, beliefs, and opinions Labor Skills, attitudes of labor Technological Equipment and skills that affect how resources are converted to products 16 Internal Environmental Forces Factors of Production Capital, raw materials, and people Activities of the organization Personnel, finance, production, and marketing 17Explosive egress Exporting transportation of any domestic good/service to a destination outside a country or region The level of world merchandise exports increased from $2 one thousand million (1980) to $15. 24 trillion (2010). Service $365 billion (1980) to $3. 7 trillion (2010). 18 yield in the volume of world merchandise exports and production, 2000-2007 2000-07 World merchandise exports uncouth products Fuels and mining products Manufactures 5. 5 4. 0 3. 5 6. 5 2005 6. 5 6. 0 3. 5 7. 5 2006 8. 5 6. 0 3. 5 10. 0 2007 6. 0 4. 5 3. 0 7. 5World merchandise production Agriculture exploit Manufacturing World GDP 3. 0 2. 5 1. 5 3. 0 3. 0 3. 0 2. 0 1. 5 4. 0 3. 0 3. 0 1. 5 1. 0 4. 0 3. 5 4. 0 2. 5 0. 0 5. 0 3. 5 Note See the Metadata for the estimation of world aggregates of merchandise exports, production and GDP. 19 Growth in volume of world merchandise trade and GDP, 2000-11 (Annual % change) Source WTO 2011a Figures of 2011 are projections 20 Explosive Growth ? Foreign Direct Investment Direct investment in equipment, structures, and organizations in a foreign country level sufficient to obtain profound anagement co ntrol World stock of outward FDI was $19 trillion at the beginning of 2010 (9 times larger than what it was in 1990). 21 Number of International Companies Keeps expanding and the big pop off bigger. ExxonMobil sales for 2011 $486 billion Wal-Mart sales revenue for 2011 $446 billion 22 Globalization the process of transformation of local anaesthetic or regional things or phenomena into global ones. Technological globalization Political globalization Economic globalization Cultural globalization 23 Globalization Economic Globalization is the international integration of goods, technology, labor, and capital. refers to the implementation of global strategies which link and coordinate a firms international activities on a worldwide basis. 24 Drivers of Globalization Political Drivers Technological Drivers Market Drivers Cost Drivers Competitive Drivers 1-25 Political There is a inclination toward the unification and socialization of the global community. NAFTA and t he European Union present significant marketing opportunities for companies. the progressive reducing of barriers to trade and foreign investment by most governments. the privatization of much of the industry in formerly commie nations. 26 Technology Advancements in computers and communication technology are permitting an increased flow of ideas and information across borders. The Internet and network computing enable small companies to compete globally. Business to business commerce is experiencing significant savings by using the Internet for business exchanges. Foreign outsourcing more and more common 27 Globalization Forces Market As companies globalize, they also become global customers. Companies follow customers abroad in order to avoid a competitor stealing the account. The saturation of the home market also sends companies into foreign markets. issuance of global customers 28 Cost Economies of scale to reduce unit cost are always a management goal. Globalizing p roduct lines to reduce development, production, and inventory costs can help achieve economies of scale. Companies can also locate production in countries where production costs are lower. 29Competitive Competition continues to increase in intensity. Companies are defending their home markets from competitors by entering the competitors home markets to distract them. 30 Views On Globalization Arguments financial support Globalization Enhances socioeconomic development Concerns with Globalization Uneven results across nations and people Promotes more and better jobs harmful effects on labor and labor standards Decline in environmental and health conditions 1-31 $1. 25 per Euro rude(a) Oil ($94. 61) Gold ($1,653. 5) Corn ($8. 10 per bushel)