INTRODUCTION TO

INTERNATIONAL BUSINESS
LECTURE # 1
BUS685, SEC # 1

Dr. Muslima Zahan

Assistant Professor
School of Business and Economics
North South University
Dhaka, Bangladesh

Summer 2020
WHAT IS INTERNATIONAL BUSINESS(IB)
 International Business
 Foreign Business

 Multi-domestic company

 Global company

 International company
WHAT IS DIFFERENT ABOUT IB
 Influence of External and Internal Environmental Forces
 Competitive,financial, economic, Political, Socio-cultural,
Labor, Technological etc.
 The Domestic Environment
 The Foreign Environment

 The International Environment

A BRIEF HISTORY OF IB
GROWTH OF INTERNATIONAL FIRMS
AND IB
 Expanding Number of International Companies
 Foreign Direct Investment and Exporting are growing
Rapidly
 What is Driving the Globalization of Business
 WORLD MERCHANDISE TRADE VOLUME, 2015-
2018
SOURCE: WTO AND UNCTAD, WTO SECRETARIAT ESTIMATES.
WORLD MERCHANDISE EXPORTS AND IMPORTS
BY LEVEL OF DEVELOPMENT, 2012Q1-2017Q4
(VOLUME INDEX, 2012Q1=100)
WHAT IS DRIVING THE GLOBALIZATION OF
BUSINESS
 What is globalization
 The drivers of globalization
 Political etc.
 Motives for entering foreign Market
 Increase profit and sales
 Protect markets, profits and sales

 The 7 Dimensions for Globalizing a Business

 Product, markets, promotion, place (for value addition),
competitive strategy, non-home country personnel use, and
extent of global ownership
MOTIVES FOR ENTENING FOREIGN
MARKETS
 Increase profits and sales
 Enternew markets, Faster growing market
 New market creation, Improves communication
 Obtain greater profits, Greater revenue.

 Protect markets, profits and sales

 Protect domestic market, lack of foreign exchange, local
production, geographic diversification.
SUMMARY
 Understand what international Business is and why it is
important
 Comprehend why and how international business differs
from domestic Business.
 Appreciate that international business has a long and
important history in the world’s development
 Appreciate the dramatic internationalization of markets.
 Understand the five kinds of drivers, all based on change,
that are leading firms to internationalize their operations.