Title: INTERNATIONAL BUSINESS
1INTERNATIONAL BUSINESS
- Ilan Bijaoui
- 2006
- ibii_at_netvision.net.il
2THE POLITICAL SPECTRUM
Rule people
Authoritarian Facist Communist
Authoritarian
Reactionary Conservative Liberal
Radical
Islam
Control souls
DEMOCRACY
TOTALITARISM
EconomyPolitics
3COMPARATIVE MEASURES OF FREEDOM
POLITICAL RIGHTS
Fair elections, representatives with power,
political parties, rights of minorities
CIVIL RIGHTS
Freedom of press, equality under law, social
freedom, government-corruption
4ECONOMIC SYSTEMS
Market Allocation
Consumers allocate resources. Competition
Consumer Protection (USA) Command Allocation
State Planners. Mixed Systems Governmental
Expenditures/GDP 32 USA, 64 Sweden
5POLITICS AND MANAGEMENT DECISIONS
- Political risks Micro (population) and Macro
(government) - Government intervention Individual-communitarian
paradigm
6INDEX OF ECONOMIC FREEDOM
Source Heritage foundation www.heritage.org
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25Map of countries by GDP (PPP) per capita, based
on the 2005 IMF data.
26- International Monetary Fund, World Economic
Outlook Database, April 2006 1 - edit
- See also
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29Leading exporters and importers in world
merchandise trade, 2005 (Billion dollars and
percentage.)WTO
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38Sources US International Trade Commission, US
Department of Commerce
39Source PRC General Administration of Customs,
China's Customs Statistics
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43Income Gini coefficients in the world
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46 MOTIVATION PUSHES AND PULLS TO
INTERNATIONALIZE
TRADITIONAL MOTIVATIONS(Bartlett) Expand
sales, acquire resources, minimize risk . Secure
Key Supplies Access Low Cost Factors Local
Market Saturation-Competition Market Seeking
Behavior Technology Vernon Product Life
Cycle
47 EMERGING MOTIVATIONS Economic,
Technological, Social Developments Amortization
of RD Expenditures(public telephone switching
systems) Shortening Product Life
Cycle Scanning Learning Capabilities Compe
titive Positioning (Cross Subsidization)
48NATURAL ENVIRONMENT
Raw materials
Energy costs
Geography
Pollution
Know how
Infrastructure
Change
TECHNOLOGICAL ENVIRONMENT
Regulation
Improvement
PM 4.4 Natural and technological environments
49DEMOGRAPHIC ENVIRONMENT
Age
Population
Family
Education
ECONOMIC ENVIRONMENT
Spending patterns
Economic
PM 4.3 Demographic and economic environments
50POLITICAL ENVIRONMENT
Interest groups
Enforcement
Legislation
CULTURAL ENVIRONMENT
Subcultures
Values
Shifts
PM 4.5 Political and cultural environments
51LEGAL ENVIRONMENT
- Public International Law International
conventions, custom - International Court of Justice (ICJ)
- Private International Law
Common Law-tradition-precedent (English) US,
India, Singapore- detailed contracts - Civil law(Codified) (Napoleonic Code)
Thailand, Japan China. US Uniform Commercial
Code. - Theocratic law Islamic law Shariah
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53ORIENTATION OF MANAGEMENT COMPANIES
Ethnocentric Home Country
Superior, Similarities
Regiocentric
Geocentric Similarities
Differences Similarities
Differences In a world region
In home host
Countries
Polycentric
Each Host Country is Unique,
Differences
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55INTERNATIONAL STRATEGIES
Domestic International
Multi-domestic, Multi National
Global Transnational
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57INTERNATIONAL STRATEGY-EXPORTS
- Local Distinctive Competence
- Raw Material
- Know how
- Manpower
- International risks
- Knowledge protection
- Investment protection
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67STAGES OF DEVELOPMENT
68INTERNATIONAL STRATEGY OF SELECTED FIRMS
69(Source Michael E. Porter, Competitive Advantage
(New York Free Press, 1985), p.37.)
PM 11.2 The generic value chain
70ILLUSTRATIVE CONFIGURATION
71ILLUSTRATIVE CONFIGURATION
72ILLUSTRATIVE COORDINATION
73CONFIGURATION OF ACTIVITIES
High
Simple Global Strategy
Extensive Coordination among subsidiaries
Coordination of Activities
Country-centered strategy by multinationals
operating in one country
Export-based strategy, decentralized marketing
Low
Geographic Dispersed Geographic
Concentrated
74PORTERS DIAMOND
Chance Firm Strategy
Structure
Rivalry
Factor
Demand
Conditions
Conditions
Related Supporting
Government
Industries
75PORTERS DIAMOND DISCUSSION
76ITALIAN SUPPLIER INDUSTRIES TO FOOTWEAR
Leather Footwear
Parts of Design
Footwear Services
Leather Processed
working Leather
Machinery
77ITALIAN INDUSTRIES RELATED TO FOOTWEAR
Leather Leather
Leather Athletic Clothing
Handbags Footwear
Footwear
Parts of
Footwear
Design Services
Leather
Processed working
Leather Machinery
78PARTIAL CLUSTURING IN DANISH ECONOMY
Barley, Malt Food
Processing Refrigeration
Yeast Equipment
Equipment
Pork Beer
Dairy Industry
Trypsin
Fermentation Purification (Enzyme)
Insulin Equipment
Technology
Fermented Insulin
Fermented Enzymes