This document provides an introduction to international business management, globalization, and the trading environment of international trade. It discusses key topics such as the meaning and features of international business, the definition and dimensions of globalization, and the stages of globalization. It also outlines some of the key factors in the trading environment for international trade, including competition, technology, the economy, culture, politics/law, geography/infrastructure, and the structure of distribution. The overall document serves to introduce foundational concepts for understanding international business management in the context of globalization and international trade.
RSA Conference Exhibitor List 2024 - Exhibitors Data
Intro to IB, Globalization & Trading Environments
1. Introduction to International
Business, Globalization and
Trading Environment of
International Trade
International Business Management
Mrs. Charu Rastogi, Asst. Prof.
2. Agenda
Meaning and features of International Business
Management
Globalization
◦ Meaning
◦ Dimensions
◦ Stages
◦ Boon or bane
Trading Environment of International Trade
Mrs. Charu Rastogi, Asst. Prof.
3. International Business Mgt :
Meaning
Very simply, IB refers to business transactions
crossing national borders at any stage of the
transaction.
It refers to all business activities which involve
cross border transactions of goods, services,
resources between two or more nations.
Transaction of economic resources include capital,
skills, people etc. for international production of
physical goods and services such as finance,
banking, insurance, construction etc.
Mrs. Charu Rastogi, Asst. Prof.
4. International Business Mgt :
Features
Large scale operations
Integration of economies (uses diff resources from diff
countries)
Dominated by developed countries and MNCs (as they
have the best financial, human and technical resources)
Benefits to participating countries (foreign capital,
technology, industrial dev, employment)
Keen competition (weak position of developing cuntries)
Special role of science and technology
International restrictions (on capital and technology
flow; barriers, duties, trade blocks are there)
Sensitive nature (Any changes in the economic policies,
technology, political environment, etc. have a huge
impact)
Mrs. Charu Rastogi, Asst. Prof.
5. Globalization : Meaning
IMF defines globalization as: ‘the growing
economic interdependence of countries worldwide
through increasing volume and variety of cross-
border transactions in goods and services, freer
international capital flows, and more rapid and
widespread diffusion of technology’
Globalization is the movement towards the
expansion of economic and social ties between
countries through the spread of corporate
institutions and the capitalist philosophy that leads
to the shrinking of the world in economic terms
It is characterized by growing economic, financial,
trade, and communications integration.
Mrs. Charu Rastogi, Asst. Prof.
8. Globalization : Dimensions
Economic: global finance and economy,
multinationals, networking, international trade and
business, new labour markets, new development
cooperation
Political: human rights, international terrorism, war
and new security problems
Democracy: good governance by people’s
participation, Human rights.
Ecological: sustainable globalization: use of
common resources and legislation (biosphere;
water, forest, earth, air, atmosphere)
Cultural: multicultural society of different identities:
local, political, gender, family, religious, national,
Mrs. Charu Rastogi, Asst. Prof.
individual and social.
9. Stages of Globalization
Stages 1. Domestic 2. International 3. Multinational 4. Global
Strategic Domestically Export Oriented,
Multinational Global
Orientation Oriented Multi-domestic
Explosion of
Stage of Initial foreign Competitive Global
international
development investment positioning
operations
Cultural Of little Somewhat Critically
Very Important
Sensitivity importance important Important
Manager The least cost Many good
One best way Many good ways
Assumptions way ways
Mrs. Charu Rastogi, Asst. Prof.
10. Stage 1: Domestic
Market potential is limited to the home country.
Production and marketing facilities located at home
Surplus may or may not be exported
No overt efforts to develop foreign markets
Mrs. Charu Rastogi, Asst. Prof.
11. Stage 2: International
Which markets to enter?
Market entry strategies
◦ Off-shoring / global outsourcing (seeking cheaper source of
raw material or labour)
◦ Exporting
◦ Licensing
◦ Franchising
◦ Joint Ventures / Acquisitions
◦ Direct Investments
Mrs. Charu Rastogi, Asst. Prof.
12. Stage 3: Multinational
The domestic based company begins to carry out
its own manufacturing, marketing and sales in
the key foreign markets.
The company moves to a full insider position in
these markets, supported by a complete
business system including R & D and
engineering.
This stage calls on the managers to replicate in a
new environment the hardware, systems and
operational approaches that have worked so well
at home.
It forces them to extend the reach of domestic
headquarters, which now has to provide support
functions such as personnel and finance, to all
overseas activities.
Mrs. Charu Rastogi, Asst. Prof.
13. Stage 4: Global
The company moves toward a genuinely global mode of
operation.
To make this organizational transition, a company must
denationalize their operations and create a system of values
shared by corporate managers around the globe to replace
the glue a nation based orientation once provided.
Today's global corporations are nationality-less because
consumers have become less nationalistic. True global
corporations serve the interests of customers, not
Governments. They do not exploit local situations and then
repatriate all the profits back home, leaving each local area
poorer for their having been there.
They invest, they train, they pay taxes, they build up
infrastructure and they provide good value to customers in all
the countries where they do business.
IBM Japan, for instance, has provided employment to about
20,000 Japanese and over the past decade has provided
three times more tax revenue to the Japanese Government
than has the Japanese company Fujitsu
Mrs. Charu Rastogi, Asst. Prof.
14. Globalization : Boon or Bane
One man’s food is another man’s
poison.
Mrs. Charu Rastogi, Asst. Prof.
Media advertising is not permitted in Libya.SeveralEuropean countries restrain the use of children in commercial advertisements.In a number of countries, including India, the advertisement of alcoholic liquoris prohibitedIn countries like Germany, product comparisonadvertisements and the use of superlatives like ‘best’ or ‘excellent’ inadvertisements is not allowed the two mostimportant foreign markets for Indian shrimp are the U.S and Japan.Theproductattributes for the success of the product in these two markets differ.In the U.S.market, correct weight and bacteriological factors are more important rather thaneye appeal, colour, uniformity of size and arrangement of the shrimp which arevery important in Japan.A very interestingexample is that of the Vicks Vaporub, the popular pain balm, which is used as amosquito repellant in some of the tropical areas.