International Business Management

FMG 26 Core Course

Term 3

Dr. Savita Gautam

Objectives of the course
• Understanding of globalisation
• Scanning of global markets
• Internationalisation theory
• Rise of emerging markets
• Regional trade blocks
• World trade organization
• Developing markets and managing exim business
Course Content
• 1-2 Globalisation & dynamic business environment
• 1-2 Analysis of the dynamic environment
• 3-4 Internationalisation
• 3-4 Concept of MNEs managing across borders
Understanding of the internationalisation process and
theories related
• 5 Emerging Markets and RTAs
• 6-7 WTO and International Regulatory environment
• 8-9 Government interventions and Controls
• 10 Managing Exim Business
Rules of the Game
• Required readings have been provided and pre- reading
before the class is a pre – requisite
• Extra readings can be given from time to time
• No late coming
• Once the attendance has been taken and submitted, no
alterations will be done
• If you are late for the class first time you will be given an
L, and marked present. After this any late coming will be
converted to absent
• No absenteeism during Guest lectures
Evaluation Component
• CP 10 marks

• Article discussions/ assignments 20 marks

• Industry analysis or developing a case study 20 marks (

group working)

• Finals 50 marks
Globalisation
• What is Globalisation?
• What is the difference between international and global?

• Global; worldwide, universal, unlimited, unbounded

• International : concerning two or more nations

• What is different when we go international?

What is different when we go international?

• Culture
• Language
• Currency/ exchange rate
• Geographic economic climate
• Demographic pattern
• Market competition
• Quality culture
• Regulatory frame work
• Technology / innovations
• What are the similarities/
What are the similarities?
• Basic human psychology
• Basic understanding of markets
• Economic indicator valuation
• Opportunities
• Each nation has an competitive advantage
• All governed by the same WTO rules

• International business- can lead to a win- win game

How do you go International?
• Local--- regional----- national----- International------- Global

• Glocal
Definitions of globalisation
• Integrating with the world economy

• Globalization is diffusion of practices, values and

technology that have an influence on people`s lives
worldwide.

• Globalization is a process fuelled by and resulting in,

increasing cross- border flows of goods, services, money,
people, information, and culture.
• Source:http://avalik.ttk.ee/pillej/gt_1_opiobjekt/module_1_globalization_definitions.html
• Acessed 15/1/2018
Another viewpoint
• Liberalisation,
• Countries dropping their borders/ borders getting porous
• Westernisation
• Americanisation
• Mac Donaldisation
• CocaColonization
• Disneyfication
What it means to me?
• Morning have lipton tea of
Hindustan levers (UK)
• Brush my teeth with colgate
(USA
• Wear a shirt from Van
Heusen (USA)
• Move to office in a FORD
car ( USA)
• Work in a global company
Amazon
• In the evening watch a
Hollywood film
• Have dinner at SUBWAY
• Sleep on a bed made by
IKEA
Height of globalization?
• What is the height of globalization?
• Answer: Princess Diana's death.

• Answer: An English Princess with an Egyptian boyfriend, crashes in

a French tunnel, driving a German car with a Dutch engine, driven by
a Belgian who was high on Scottish whiskey, followed closely by
Italian Paparazzi, on Japanese motorcycles, treated by an American
doctor, using Brazilian medicines!
• And this is sent to you by an Indian, using Bill Gates technology which
he stole from the Japanese.
• And you are probably reading this on one of the IBM clones that use
Taiwanese-made chips, and Korean made monitors, assembled by
Bangladeshi workers in a Singapore plant, transported by lorries
driven by Pakistanis, and finally sold to you by the Chinese!
• Here you have it:…Globalization!
Movers and Restraining factors of Globalisation

Source: RM Joshi, 2011

Globalisation
• Globalisation is now an
inevitable process, it is there to
stay
• Globalisation increases as
products/ services, labour,
capital, technology and
knowledge
International business and globalisation

• International business-business(firm)that engages in

international(cross-border)economic activities or the
action of doing business abroad. TATA MOTORS

• Global business-business around the globe, including

both international(cross-border)activities and domestic
business activities Decathalon, Hewlett Packard, Micro
Soft.
International Business- Types
• International trade products & services

• Exporting or Importing

• International Investments in The form of,

• Portfolio investments

• Foreign Direct Investments

Difference between Domestic and
International Markets
• Business environment
• Economic
• Socio- cultural
• Political
• legal
Globalisation/ International Business;
Risks?
• Risks associated with globalisation– so tread with care

• Finanacial crisis SE Asian 1990s

• USA financial crisis ---- 2008 ----- affected all parts of the
world
• Brexit?
Risks in Internationalisation
• Cross Cultural Risks: Japan Market for Mattel Toys USA

• Language can act as a barrier.

• NOVA

• Colour significance
• Country Risk (Political risk)

• Currency Risk refers to the risks associated exchange

rate fluctuations

• Commercial risks in terms of selection of business

partners, agents or business partners selection,
PEST Analysis
• Political

• Economic

• Social

• Technological
World AT DAVOS
• Concerns from the world leaders

• Climate Change
• Terrorism
• Globalisation backlash
• Education must be reimagined- in wake of AI &
automation
• Gender rights and equality
• Financial inclusion
• Sustainable business
What are the effects of globalisation?
• Debate over whether globalisation is good or bad?
• Thank you