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International Business: Strategy, Management, and the New Realities

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Title: International Business: Strategy, Management, and the New Realities


1

MGT 464 International Business Management
Professor Stone Fall 2010
International Business Strategy, Management, and
the New Realities
2
Important Information
  • Office JH 4222
  • Phone 805.660.8483
  • Office Hours Mon 2-3 and 6-7 Thu 1-2
  • Text Cavusgil, Knight Riesenberger, 2008.
    International Business Strategy, Management and
    the New Realities. Pearson. ISBN
    978-0-13-173860-7

International Business Strategy, Management, and
the New Realities
3
Class Content
  • Weekly Quizzes Chapter Reading and Geography 7
  • Intl Business Research Paper Team
    project 25
  • Intl Business Paper Presentation Team
    project 5
  • Cases and Discussion Answers 4 at 3 each
    (2pages max.) 12
  • Midterm Evaluations 2 m-c, non-cumulative
    at 15 each 30
  • Final Evaluation (cumulative essay) 15
  • Attendance, Particip. Instructor Eval. (6)

International Business Strategy, Management, and
the New Realities
4
Research Paper Overview
  • 4-person groups
  • Identify an international business opportunity
    (industry)
  • Select two potential host countries in which to
    operate
  • Evaluate potential and risk of the two countries
  • Select one country
  • Describe entry steps and considerations for your
    business in that country.
  • Paper length approximately 30 pages, with
    MLA-style references.
  • Present your results and conclusion at the end of
    the semester

International Business Strategy, Management, and
the New Realities
5
Research Paper Milestones
  • Sept. 2 Team formation in class
  • Sept. 16 Turn in proposal
  • Oct. 7 Turn in detailed outline
  • Nov. 11 Turn in first draft for feedback
    (optional)
  • Dec. 2 Team presentation
  • Dec. 9 Turn in final report

International Business Strategy, Management, and
the New Realities
6

Chapter 1 Introduction to International
Business International Business Strategy
Management the New Realities
7
The Internationalization of Business
  • Companies conduct value-adding activities on a
    global scale, primarily to organize, source,
    manufacture, and market
  • A level playing field has made international
    activities appealing to all types of firms- large
    and small manufacturing and service sectors
    (e.g. banking, transportation, engineering and
    design, advertising, and retailing). REALLY?

8
The Nature of International Business
  • All value-adding activities including sourcing,
    manufacturing, and marketing, can be performed in
    international locations
  • The subject of cross-border trade can be
    products, services, capital, technology,
    know-how, and labor
  • Firms internationalize via exporting, foreign
    direct investment, licensing, franchising, and
    collaborative ventures

9
Globalization of Markets a Macro Concept
  • Ongoing economic integration and growing
  • interdependency of countries worldwide.
  • Integration is central to globalization, which
    has resulted in the widespread diffusion of
    products, technology, and knowledge worldwide,
    regardless of where they originate.

10
Dimensions of Market Globalization
  • Greater integration and interdependency of
    national economies leading to freer movement of
    goods, services, capital, and knowledge
  • Rise of regional economic integration blocs
  • Growth of global investment and financial flows
  • Convergence of consumer lifestyles and
    preferences
  • Globalization of production

11
World Trade Is Growing Faster than GDP
  • Rapid integration of world economies is
  • fueled by factors such as the decline of
  • trade barriers, e.g. tariffs, liberalization of
  • markets, privatization and the economic
  • vitality of emerging markets. REALLY?

12
Comparing the Growth Rates of World GDP and World
Exports
Data are 4 years old. Whats been happening
Since 2006?
13
Leading Countries in International Merchandise
Trade, Total Value
Data are 9 years old. Whats been happening
Since 2000?
14
Leading Countries in International Merchandise
Trade, as of Nations GDP
What data does this Chart represent? What is Date
of this chart?
15
Foreign Direct Investment (FDI) Inflows into
World Regions (in Billions of U.S. Dollars per
Year)
Data are 5 years old. Whats been happening
Since 2004?
16
Leading Countries in International Services
Trade, Total Value
What data does this Chart represent? What is Date
of this chart?
17
Leading Countries in International Services
Trade , as of Nations GDP
What data does this Chart represent? What is Date
of this chart?
18
Why Study International Business?
  • A facilitator of the global economy and
    interconnectedness
  • A contributor to national economic well-being
  • A competitive advantage for the firm
  • An activity with societal implications
  • A source of competitive advantage for you

19
An International Business Student Must
  • Understand cultural differences
  • Know why firms in different countries trade
  • Know how and why governments control
    international trade
  • Know how to analyze a country for its potential
    for trade
  • Know how to create an international business
    opportunity
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