The increasing interdependence of world economies, cultures, and populations.

The increasing interdependence of world economies, cultures, and populations.

• 1.
  Chapter One Globalization andInternational Business
• 2.
  Introduction The international dimensionof management and business due mainly to Globalization has become a major challenge to governments, institutions and Organizations. This helps explain why the area of international management (IM) is becoming more important within the academic setting.
• 3.
  3 What is InternationalBusiness?  International business: all commercial transactions between parties in two or more countries. o These transactions include the transfer of goods, services, technology, and capital to other countries, and involves exports and imports.
• 4.
  International Business
• 5.
  1-5 Globalization:  The ongoingsocial, economic, and political process that extends the relationships and inter-dependencies amongst nations, their people, their firms, their organizations, and their governments.  International business facilitates the globalization process.
• 6.
  International Business GLOBALIZATION
• 7.
  Globalization of Markets
• 8.
  Globalization of Production
• 9.
  Forces Driving Globalization Technologicalinnovation
• 10.
  Key Players inInternational Business
• 11.
  Need for InternationalBusiness More and more firms around the world are going global, including: Manufacturing firms. Service companies (i.e. banks, insurance, consulting firms) Art, film, and music companies.
• 12.
  12 Why Studying InternationalBusiness is Important?  Most companies are either international or compete with international companies.  Significant differences exist in countries such as: -Consumer tastes and preferences. -Distribution channels. -Culturally rooted value systems. -Business systems. -Legal systems.
• 13.
  Why Studying InternationalBusiness is Important?  These differences required that product features, product mix, marketing strategies and operating practices are customized to match conditions of a particular country. 13
• 14.
  Factors Contributing toFast Growth of International Business 1. Increase in and expansion of technology. 2. Development of services that support international business. 3. Growing consumer pressures. 4. Increased global competition. 5. Changing political situations. 6. Expanded cross-national cooperation.
• 15.
  An international businesshas many options for doing business, it includes: Exporting and importing goods and services. Giving license to produce goods in the host country. Starting a joint venture with a company. Opening a branch for producing & distributing goods in the host country. Providing managerial services to companies in the host country.
• 16.
  International business iseither private or governmental business relationships conducted across political boundaries of the country . It may be for profit or non-profit oriented. This combine selling and buying goods/services across political boundaries of the country, and it generally require to deal with multinational operations across national borders.
• 17.
  Reasons That FirmsEngage in International Business: 1. To expand sales: • Ericsson [Sweden] • Nestlé [Switzerland] • IBM [USA] • Sony [Japan]
• 18.
  1-18 2. To acquireresources: • Products components. • Foreign capital. • Technologies. • Information. 3. To minimize risk: • Diversify suppliers across countries. • Competitors’ advantages.
• 19.
  What is InternationalBusiness Management ? International Business Management : The management of business operations for an organization that conducts business in more than one country. International management requires knowledge and skills more than normal business expertise, such as familiarity with the business regulations of the nations in which the organization operates, understanding of local customs and laws.
• 20.
  International Business ManagersMust Understand The Importance of: Domestic and international law. Political science. Sociology. Psychology. Economics. Geography. Must be knowledgeable about the competitive dimensions of the international business environment.
• 21.
  International Business Managersshould have the knowledge and the skills to manage and handle cross-cultural processes, stakeholders, the capability to conduct transactions that may involve multiple currencies and environments in a right way. International Business Managers
• 22.
  1-22 Implications/Conclusions Managing an internationalbusiness differs from managing a domestic business because of : 1. Countries and cultures are different. 2. International business operations are more complex than domestic operations. 3. From one country to another, a company’s relative competitiveness will vary because of the differences in the local and foreign competitors that are present.