Presentation on INTERNATIONAL BUSINESS

Presented by: Ritu Jain MBA, Sem- III Roll No.: 01670500026
Hermes College of Engineering and Management

Globalization
Free cross- border movement of goods, services, capital, information and people. Intensification of cross- national economic, political, cultural, social and technological interactions that leads to the establishment of transnational structures and the integration of economic, political and social processes on a global scale.
Hermes College of Engineering and Management

Dimensions of Globalization
Globalization of Production

Globalization of Corporations and Industry

Globalization of Markets

Globalization

Globalization of Technology

Globalization of Competitions

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International Business (IB)

Conduct of business activities beyond the national boundaries. Comprises of all the commercial transactions taking place between two countries.

International Business = business among multiple countries

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Some Important Terms in IB

International Trade: Imports of goods and services by a firm to a foreign- based buyer(importer) or from a seller(exporter) International Marketing: Focuses on firmlevel marketing practices across the border, including identification and targeting, entry mode selection, marketing mix and strategic decisions to compete in international markets
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Continued...
International Investment: Cross- border transfer of resources and business activities. International Management: Applications of management concepts and techniques in a cross- country environment and adaptation to different social- cultural, economic, legal, political and technological environment.
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Why Companies go International?

Marketseeking Motives
Marketing opportunities due to life cycles Uniqueness of product or service Profitability Spreading R & D costs Achieving economies of scale

Domestic Company

Economic Motives

Strategic Motives

Growth Risk Spread

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Reasons for Growth of IB

Rapid increase in communication and advancement in technology Liberalization of cross- border movements of trade and resources Development of supporting services Consumer pressure Improvement in political relations
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Types of IB
Trading Manufacturing and Marketing Sourcing and Marketing Global Sourcing for Production Market Entry and Operating Firms (Joint Venture, Franchising, Contract Manufacturing, etc.)
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IB Decision
Domestic Company
Company Objectives Company Resources Market Potential Environmental Factor

Market Selection Decision Entry and Operating Decision Marketing Mix

Product Place Price Promotion

International Organization Decision

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EPRG Framework of International Orientation

Ethnocentrism (Home Country Orientation) Polycentrism (Host Country Orientation)

EPRG Framework Regiocentrism (Regional Orientation) Geocentrism (World Orientation)

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