Vision without action is a

daydream.
Action without vision is a
nightmare
*
* Interntional Business Management
*

International business refers to the trade

of goods, services, technology, capital and/or
knowledge across national borders and at a global.

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*
* Ways of Internationalization
*

• International Trade
• Exporting
• Importing (Global Sourcing)
• Frenchising
• Licensing
• International Investments
 International Portfolio investment
 Foreign direct investment (FDI)

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*
* GLobalization
*
What Is Globalization?
The shift toward a more integrated and
interdependent world economy.
Globalization is the process of interaction and
integration among people, companies, and
governments worldwide.
* The world is moving away from self-contained
national economies toward an
interdependent, integrated global economic
system
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*
* Global institutions
*
* Global institutions
* manage, regulate, and police the global marketplace
* promote the establishment of multinational treaties to
govern the global business system
* General Agreement on Tariffs and Trade (GATT)
* World Trade Organization (WTO)
* International Monetary Fund (IMF)
* World Bank
* United Nations (UN)
* G20

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* Comparing the Growth Rates of World GDP and World
* Exports
*

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*
*
*

Risks involved in International Business

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*
* Risks involved in IB
*

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*
*
*

Why do Firms Internationalize?

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*
* Why do Firms Internationalize?
*
1. Seek opportunities for growth through market
diversification

2. Earn higher margins and profits

3. Gain new ideas about products, services, and

business methods
4. Better serve customers that have relocated
abroad
5. Be closer to supply sources, benefit from global
sourcing advantages, or gain flexibility in the
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*
* Why do Firms Internationalize?
*
6. Gain access to lower-cost or better-value
factors of production

7. Develop economies of scale in sourcing,

production, marketing, and R&D

8. Confront international competitors more

effectively or prevent the growth of
competition in the home market

9. Invest in a potentially rewarding

relationships with foreign partners
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