View
219
Download
0
Category
Preview:
Citation preview
8/7/2019 IB Trade Block
1/17
Ch 1 InternationalBusiness
International Transactions - export-import trade, directforeign investment - wholly owned subsidiaries, jointventures; licensing, franchising, outsourcing, andmanagement contracts.
More than one set of environmental variables.
Interactions between countries - Trade and foreignpolicies, Tariffs and other barriers, and Exchange rates.
Variables which are Especially Important- Infrastructure,Market structure, and Socio/cultural variables.
8/7/2019 IB Trade Block
2/17
The Global BusinessEnvironment
Collapse of communist economies.
Economic power of western nations.
Rise of newly industrialized nations.
Free market economies.
Belief in open markets, trade and foreign
investments as the road to economicdevelopment.
8/7/2019 IB Trade Block
3/17
The Global BusinessEnvironment
Trade Agreements and stabilization of tradepolicies.
Regional trade blocks. Free Market Economies.
Measures to facilitate trade.
Globalization of Markets
Big Emerging Markets
The internet
8/7/2019 IB Trade Block
4/17
The Global Bus. Env. - FreeMarket Economies
Privatization and deregulation.
Especially in financial services, transportation
and communications. Lower barriers to trade.
8/7/2019 IB Trade Block
5/17
The Global Bus. Env. -Trade Agreements
World Trade Organization (W.T.O)
North American free Trade Area (N.A.F.T.A)
European Union (E.U)
A.S.E.A.N. Free Trade Area (A.F.T.A.)
Southern Common Market (Mercosur)
Asia-Pacific Economic Cooperation(A.P.E.C)
8/7/2019 IB Trade Block
6/17
World Trade Organization
Created at the conclusion of the last G.A.T.T.agreement.
149 countries (as of December 2005)
Functions: Administering WTO trade agreements (e.g.,GATT, GATS, TRIPS)
Forum for trade negotiations Handling trade disputes Monitoring national trade policies Technical assistance and training for developing countries
Cooperation with other international organizations WTO | About the organization
8/7/2019 IB Trade Block
7/17
North American Free TradeAgreement NAFTA
GNP: $10.8 trillion; 406 million people
8/7/2019 IB Trade Block
8/17
European Union
GNP $9 trillion; 386 million people
Belgium
Denmark
France
Germany
Greece
Ireland Italy
Luxembourg
Netherlands 2004 Czech Republic
Portugal Cyprus, Estonia, Spain Hungary, Poland,
U.K. Slovenia, Bulgaria,
Austria Latvia, Lithuania,
Finland Malta, Romania, Sweden Slovakia.
8/7/2019 IB Trade Block
9/17
ASEAN/ A.F.T.A.
ASEAN Brunei
Indonesia
Laos
Malaysia
Myanmar
Philippines
Singapore
Thailand
Vietnam
ASEAN Free Trade
AreaGNP: 546 Billion: 512 million People
Brunei Laos
Myanmar
Malaysia
Indonesia The Philippines
Singapore
Thailand
8/7/2019 IB Trade Block
10/17
A.F.T.A.
CHINA
MYANMAR
BHU.
INDIA
THAILAND
TAIWAN
PHILIPPINES
MALAYSIABRUNEI
Manila
Hong KongLAOS
VIETNAM
Hamol
Halphong
BangkokCAMBODIA
Phnom Peih Ho Chi
Minh city
Kuala Lumpur
Medan
PalembangSINGAPORE
Jakarta
Bandung
Sematany
Surabaya
INDONESIA
PAPU NEWGUINEA
AUSTRALIA
M-6
BNGL.
RangoonVietlane
8/7/2019 IB Trade Block
11/17
Southern Cone Common Market
(Mercosur)
GNP: $1.3 trillion; 220 million people
Argentina Bolivia
Brazil Chile
Paraguay Uruguay
8/7/2019 IB Trade Block
12/17
Mercosur
8/7/2019 IB Trade Block
13/17
APEC - Asia PacificEconomic Cooperation
Australia, Brunei, Canada, Chile, China, HongKong, Indonesia, Japan, Korea, Malaysia,
Mexico, New Zealand, The Philippines, PapuaNew Guinea, Singapore, Taiwan, Thailand andthe U.S.
Forum for promoting trade liberalization and
economic cooperation
8/7/2019 IB Trade Block
14/17
The Global Bus. Env. -Globalization of Markets
Global linkages - trade, financial markets, tech.,comm. & transportation, etc.
Global Competition. Global market segments.
Mass Marketing and Global Strategies.
Restructuring of Organizations
Mergers, consolidations, centralization, globalproduction strategies, global supply & R&Darrangements, etc.
8/7/2019 IB Trade Block
15/17
The Global Bus. Env. - BigEmerging Markets.
Asia - ASEAN, CEA, India, SouthKorea.
Latin America - Mexico, Argentina,Brazil.
Africa - South Africa. Europe - Poland, Turkey
8/7/2019 IB Trade Block
16/17
The Global Bus. Env. -Internet
Emerging as a major internationalbusiness tool for - Sales (bothbusiness-to-business and consumer),research, advertising, andcommunications.
Problems with govt. regulations,tariffs, and taxation.
8/7/2019 IB Trade Block
17/17
Reasons for Expandinginto International Markets
Domestic Market Saturated
Increase market size and extend product life cycle
Enhance your return on invested capital
Enhance location advantages for suppliers or customers
Higher Sales, Economies of Scale, Risk Diversification,transfer of knowhow, global brands etc.
Growth Opportunities
Globalization of Market
Recommended