INTERNATIONAL

BUSINESS
Instructor: Linh Nguyen
Session 3
DISCUSSIONS

You are working for AMAZON (e-commerce business). Your

company is planning to move their business into international
market and ASIAN market is one of their consideration. You
are asked to conduct a study to evaluate the potential of
ASIAN markets.

Question: Which country do you think Amazon should enter ?

Why?
BUSINESS ENVIRONMENT ANALYSIS

Natural

Cultural Political
INTERNATIONAL
BUSINESS
ENVIRONMENT

Economi
Legal
c
NATURAL ENVIRONMENT

TOPOGRAPHY CLIMATE

NATURAL RESOURCES POPULATION

ECONOMIC ENVIRONMENT

• Economics system
Command economies, market economy, mixed economy

• Economic indicators
GDP, PPP, inflation rate, foreign debt, FDI growth…

• Economic instability
• Economic transformation
POLITICAL ENVIRONMENT

Political stability: Stability of government and stability

of policies.
For international business: Stability of government
policies is of more concern than stability of the
government itself.
DIFFERENCES IN LEGAL SYSTEM

• Differences in contract law

• Property rights and corruption
• The protection of intellectual property
• Product safety and product liability

.
OVERALL ATTRACTIVENESS
DISCUSSIONS

Why a nation achieves

international success in a
particular industry ?
NATIONAL COMPETITIVE ADVANTAGE
FIRM STRATEGY, STRUCTURE AND
RIVALRY
The nature of domestic rivalry, and conditions that
determine how a nation’s firms are created, organized,
and managed

Italy has many top firms in design

industries such as textiles, furniture,
lighting, and fashion. Vigorous
competitive rivalry puts these firms
under constant pressure to innovate,
which has propelled Italy to leading
position in design, worldwide.
DEMAND CONDITIONS AT HOME
The strengths and sophistication of customer demand

Japan is a densely populated,

hot, and humid country with a
very demanding consumers.
These conditions led Japan to
become one of the leading
producers of superior, compact
air conditioners.
FACTOR CONDITIONS

Quality and quantity of labor, natural resources, capital,

technology, know-how, entrepreneurship and other
factors of production.

An abundance of cost –effective

and well-educated workers give
China a competitive advantage
in the production of laptop
computers
RELATED AND SUPPORTING INDUSTRIES

The presence of suppliers, competitors, and

complementary firms that excel within a given industry.

The Silicon Valley in

California is a great place to
launch a computer software
firm because it is a home to
thousands of knowledgeable
firms and workers in the
software industry
QUALITY OF NATIONAL BUSINESS
ENVIRONMENT

Source: Professor Michael E.Porter

MARKET OPPORTUNITIES
SKILLS: SEARCH TIPS

Data sources: Tổng cục thống kê, Worldbank, ADB bank, IMF, hiệp hội ngành nghề…

Previous papers: google scholar, tạp chí trong nước như: tạp chí kinh tế phát triển,tạp chí kinh tế
tài chính việt nam, tạp chí nghiên cứu kinh tế…