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INTERNATIONAL BUSINESS

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Map of countries by GDP (PPP) per capita, based on the 2005 IMF data. Rank. Country ... ITALIAN INDUSTRIES RELATED TO FOOTWEAR. Parts of. Footwear. Leather ... – PowerPoint PPT presentation

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Title: INTERNATIONAL BUSINESS


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INTERNATIONAL BUSINESS
  • Ilan Bijaoui
  • 2006
  • ibii_at_netvision.net.il

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THE POLITICAL SPECTRUM
Rule people
Authoritarian Facist Communist
Authoritarian
Reactionary Conservative Liberal
Radical
Islam
Control souls
DEMOCRACY
TOTALITARISM
EconomyPolitics
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COMPARATIVE 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
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ECONOMIC SYSTEMS
   Market Allocation
Consumers allocate resources. Competition
Consumer Protection (USA)    Command Allocation
State Planners.    Mixed Systems Governmental
Expenditures/GDP 32 USA, 64 Sweden
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POLITICS AND MANAGEMENT DECISIONS
  • Political risks Micro (population) and Macro
    (government)
  • Government intervention Individual-communitarian
    paradigm

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INDEX OF ECONOMIC FREEDOM 
Source Heritage foundation www.heritage.org
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Map of countries by GDP (PPP) per capita, based
on the 2005 IMF data.
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  • International Monetary Fund, World Economic
    Outlook Database, April 2006 1
  • edit
  • See also

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Leading exporters and importers in world
merchandise trade, 2005   (Billion dollars and
percentage.)WTO
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Sources US International Trade Commission, US
Department of Commerce
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Source PRC General Administration of Customs,
China's Customs Statistics
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Income Gini coefficients in the world
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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
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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)
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NATURAL ENVIRONMENT
Raw materials
Energy costs
Geography
Pollution
Know how
Infrastructure
Change
TECHNOLOGICAL ENVIRONMENT
Regulation
Improvement
PM 4.4 Natural and technological environments
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DEMOGRAPHIC ENVIRONMENT
Age
Population
Family
Education
ECONOMIC ENVIRONMENT
Spending patterns
Economic
PM 4.3 Demographic and economic environments
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POLITICAL ENVIRONMENT
Interest groups
Enforcement
Legislation
CULTURAL ENVIRONMENT
Subcultures
Values
Shifts
PM 4.5 Political and cultural environments
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LEGAL 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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ORIENTATION 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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INTERNATIONAL STRATEGIES
      Domestic       International      
Multi-domestic, Multi National      
Global       Transnational
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INTERNATIONAL STRATEGY-EXPORTS
  • Local Distinctive Competence
  • Raw Material
  • Know how
  • Manpower
  • International risks
  • Knowledge protection
  • Investment protection

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STAGES OF DEVELOPMENT
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INTERNATIONAL STRATEGY OF SELECTED FIRMS
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(Source Michael E. Porter, Competitive Advantage
(New York Free Press, 1985), p.37.)
PM 11.2 The generic value chain
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ILLUSTRATIVE CONFIGURATION
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ILLUSTRATIVE CONFIGURATION
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ILLUSTRATIVE COORDINATION
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CONFIGURATION 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
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PORTERS DIAMOND
Chance Firm Strategy
Structure
Rivalry
Factor
Demand
Conditions
Conditions
Related Supporting
Government
Industries
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PORTERS DIAMOND DISCUSSION
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ITALIAN SUPPLIER INDUSTRIES TO FOOTWEAR
Leather Footwear
Parts of Design
Footwear Services
Leather Processed
working Leather
Machinery
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ITALIAN INDUSTRIES RELATED TO FOOTWEAR

Leather Leather
Leather Athletic Clothing
Handbags Footwear
Footwear
Parts of
Footwear

Design Services
Leather
Processed working
Leather Machinery
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PARTIAL 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
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