GFOB 9/7/2012

TWO Practical Insights Ex. Mickey D’s trying to adjust to the local culture of India, Argentina, France, etc. Find an article to writ e a 3 page paper. 1st page: summarize article 2nd page: explain topics mentioned 3rd page: what do I think? Does this tactic work? Is it right or wrong? How has reading this article help you further understand the topics discussed in class.

Global Business Plan (GROUP) Project Select a country and an industry within that country. Form groups, select country, select industry. TIP: don’t go for developed countries. We want to present growth of countries less known of. Think latin America, Africa, Eastern Europe, Asia.

G-Pitch (GROUP) 5 minute business idea How quickly can you think and present your own business idea? A business idea that addresses a social problem. Ex. Social Problems: water shortage, food shortage, education facilities, diseases, medical care, health care.

ex. Course Participation is considered by your punctuality. International Business 1. MONEY IN ex. Wholly owned. Learn something. Foreign Portfolio Investment ex. Thus. Lol. International Investment: a. joint-venture. active learning. Foreign Direct Investment: ex. etc. strategic alliance b. (def. Stocks/bond. Japanese company because HQ are located there. Globalization No business is purely domestic. Nike: an American company whose products are made in China and imported to America.) International Trade: Import/Export ex. this is called your portfolio of investments -if you invest enough to become a board member and important shareholder and attain the right to vote. Honda: accords and civics made in America and made by parts source in the states.Boeing 2. ex. Import IN EXPORT OUT. revenues come directly back to Italy bc ownership of the hugo HQ in Serbia actually belongs to Italy. Money Out. preparedness. you still don’t run the company or have the say in day-to-day control of business activities. doe. ALL businesses should at least THINK internationally. What goes on internationally in business affects businesses domestically. Let fidelity manage savings (investing in Russian oil industry) going through fidelity and no control over day to day operations means not a direct investment! ex.YOU ARE A MANAGER. FIAT invests resources in the business’ day-to-day activites outside its home country. 9/10/12 .

Boeing is international because it SOURCES its products internationally What is the need to become international? To make more money. Boeing has its HQ in Chicago and manufactureing companies in WA but the planes itself come from 42 different countries. The question is exactly HOW international you are. 1. Company in 2 different countries. The richest country is the country with the most gold. Pier 1 imports 2. Nike makes its shoes in china but sold in the America Ex. -Import to another country. Ex. .International Business was known TRADE: IMPORT/EXPORT First international company was the EAST INDIA TRADING COMPANY – barter system that traded something of value with gold or silver. Ex. businesses increase the opportunity to ALSO. countries are interdependent due to natural resources. By going INTERNATIONAL. Coca cola – sold in 240 countries ex. When do you say a company is an international company? -When you have operations in another country. India. -outsources to different countries Ex. Countries with fewer gold reserves thus traded other things of value. • • America is a fixed piece of the pie. china. When business IN the United States are in demand the value of the US dollar goes up.

Economies of Scale. SO. Coca cola: sold in 204 countries. Ex. ex. Its profit margins decreased with all this new competition. it maintained the integrity of its products. which were made there at a fraction of the cost. some countries are specialized in certain products. Biggest McDonald’s in Russia ex. • ALSO. coca cola makes a lot more money by being the most efficient. Olive oil = Italy. Nike gets competition: reebok. • Profit margins of companies are higher outside of the united states than domestically. the quality. It’s REFRESHING:) so all they have to do is standardize coca cola to sell it across the board. By standardizing. KFC in Japan is a delicacy. By going outsourcing in China. if you ask whoever drinks coke and asks why they drink coke and collect the responses. new balance. mike increased its profit margin. adidas. Ex. some businesses need to outsource to stay competitive ex. the answer is quite similar. feta cheese = Greece. South Africa = diamonds • ALSO. Delivery services (separate from the companies itself) GLOBALIZATION of MARKETS Specialized form of international business. Saudi Arabia = richest oil reserves. armed KFC in India ex. Mercedes is a luxury brand in the united states ex. . By going international. HOWEVER. Nike stayed competitive due to OUTSOURCING. it needed to increase sales by expanding to avoid reducing cost substantially.Ex. But not everybody in those countries drink coke.

Fixed costs:rent variable cost: labor. “MADE IN CHINA” FACTS: wal mart has control of 5% of China’s GDP To stay competitive. supplies. wal mart outsources in china • • The most global markets are not consumer markets The most global markets are for industrial goods and materials that serve a universal need the world over .