International business 5th griffin chapter 01

Chapter Objectives • Discuss the meaning of international business • Explain the importance of understanding international business • Identify and describe the basic forms of internati

Chapter Objectives

• Discuss the meaning of international business

• Explain the importance of understanding

international business

• Identify and describe the basic forms of

international business activities

• Discuss the causes of globalization

• Comprehend the growing role of emerging markets in the global economy

The Business of the Olympics

The Business of the Olympics

• Intense reflection of international business

• Government of games by IOC

• Competition for hosting

• Revenue sources for the Olympics

– Broadcast rights – Corporate sponsorships

How Does International Business

Differ from Domestic?

• Currency conversion

• Legal systems

• Culture

• Availability of resources

Why Study International

International Business Activities

• Exporting and Importing

• International Investments

• Licensing, Franchising, and Management Contracts

Exporting and Importing

• Exporting: selling of products made

in one’s own country for use or resale in other countries

• Importing: buying of products made

in other countries for use or resale

in one’s own country

Figure 1.1 Exports as a % of GDP

Visible and Invisible Trade

Exporting at Boeing

Other Forms of International Business Activity

Management contracts

Franchising Licensing

Variations of Organizations

Multinational Corporation

Multinational Enterprise

Multinational Organization

Multinational Corporations

(MNCs)

• Engage in foreign direct investment

• Own and control foreign assets

• Buy resources in multiple countries

• Create goods and services in multiple countries

• Sell goods and services in multiple

countries

Table 1.1 The Largest MNCs

Motives for Globalization

• To leverage core competencies

• To acquire resources and supplies

• To seek new markets

• To better compete with rivals

Environmental Change and

Globalization

Changes in Political Environments

Technological Changes

Figure 1.2 World Exports

as a % of World GDP

Figure 1.3 Foreign Direct Investment Relative to World GDP

Globalization and Emerging Markets

Framework of Book

• The World’s Marketplaces

• International Environment

• Managing International Business

• Managing International Business Operations