Strategy and opportunity assessment; Role of strategy in IB; Estimating market potential; Choosing a strategy; Entering and operating in international markets - exporting and importing, collaborating ventures and strategic alliances, licensing, franchising; Global outsourcing; MNCs and Foreign Direct Investment in the world economy - concept, types and trends.
5. Accessing Global market opportunities
Accessing organizational readiness to internalize
Accessing the suitability of product and services for
foreign market
Screening the countries to identify target market
Accessing industry market potential
Choosing the foreign business partners
Estimating countries self potential
20. Foreign Direct Investment(FDI)
•FDI is a Investment placed directly in business operations in a
foreign countries
•It is a act of moving business activities across the national
border
21. TRENDS OF FDI
• Fall in global FDI inflow
• Rise in inward FDIs to developing economies
• Rise in FDIs inflows toAsian developing
countries
• Fall in FDIs within the regional blocks
• Continuous shift of FDIs to service sector
22. Types of FDI
Green Field Investment
And Acquisition
Foreign Portfolio
Investment
25. MULTINATIONAL COMPANY(MNC)
(Major actor of international business)
A company which operates it’s operation in two or
more countries simultaneously.
Subsidiaries
companies
(Host Countries)
Parent Company
(Home Country.)
Give orders.
Report to HO.
26. More information about MNC
• AfterWorldWar II there has been rapid growth in
MNC.
• MNCs alone cover 2/3 rd of world trade and remaining
1/3 rd by intra-firms.
• MNCs look world map as it has no boundaries.
27. Different from trans-national corporation (TNC)
TNC is a company that maintain significant
operations in more than one country but
decentralizes management to the local country.
28. CHARACTERSTICS OF MNC
(Quality that makes something or somebody identifiable.)
1. Simultaneous operation in multiple countries.
2. Factors of production from multiple countries
3. System from the home country applied to the
host countries.
4. Virtual independence for subsidiaries.
29. TYPES OF MNCs
Basis of management
orientation.
Ethnocentric
Regiocentric
Basis of organization
purpose
Raw Material Seeker
Market seeker
Polycentric Cost minimizer
Geocentric
30. HOME
COUNTRY
HOST
COUNTRIES
ADVANTAGES AND DISADVANTAGES
OF MNCs
ADVANTAGES DISADVANTAGES
Political Benefits Economic
Economic Benefits Political
Cultural Benefits Cultural
Environmental
Cost of FOP equitable around the
world and also they help to
stabilize price of countires.
Flush out valuable capital and
competitive technologies in
foreign countries weakening
country’s competitive
advantages.
