University Of Finance & Administration

INTERNATIONAL BUSINESS RELATIONS[BA_IBR]

Pavla Břečková [Ing., Ph.D.]pavla.breckova@vsfs.cz

2.

INTERNATIONAL BUSINESS RELATIONS – main areas

Full-time course = 12 lectures per 90 mins.

•INTERNATIONAL BUSINESS [IB], characteristics, indicators.

•WORLD BUSINESS TERRITORIES, challenges, integration, main

trading blocks [TRIAD, BRIC]

•GLOBAL BUSINESS ENVIRONMENT.

•EMERGING MARKETS, characteristics, features, selected

markets in detail

•BRICS

•Doing business in ASIA

•Foreign market analysis

•PREDISPOSITIONS for working in IB, expatriation and HR in IB

 

EXAM terms BA_IBR

12 lectures (per 90 mins) - Finished by: exam

Completion CONDITIONS = min. 12 points out of 30

Active participation in the lectures[active listening, discussing, reading, analyzing & interpreting of economic articles or case study results, presence at lectures – 50%]

Case study elaboration & it’s active professional prezentation Knowledge test

ALL BASED ON POINTS AS FOLLOW

5 points = 3/5 presence (if less = 0 points)up to 10 points = success at CASE study

& its prezentation up to 15 points = TEST

TOTAL max 3012 – 14 points = E15 – 17 = D18 – 20 = C21 - 23 = B24 – 30 = A

CASE study / team project

CASE study on one of these topics:

1. BUSINESS RELATIONS … worldwide. The world economy structuring nowadays, may be compared with the past /

possible prospects for future. Examples of certain (political) decisions => concrete influence on business or business relations.

2. SMEs (Small & Medium Enterprises) and their role in a globalizing world Companies up to 250 employees (acc.to European definition), their specifics, positives x negatives, could contain some statistics or comparison in various countries. Their major role in society, comparison of views on them in various countries or contexts.

3. FAMILY BUSINESS …and their role in global business, positives x negatives, examples, specifics,

problem of handing over to next generations, comparisons in various countries etc.

4. PRODUCT PLACEMENT – market study Placing of a product into a foreign market, including product description + argument why

it is suitable for export, analyses of the preferential market (why this market, structure and potential of the target group), mapping competition, potentials + risks, argument why you think your product will succeed.

5. NOT WIDELY KNOWN (UNUSUAL INFORMATION) about BRICS / EU / ASEAN or another international trade grouping

CASE study - elaboration

CASE study on one of these topics:

1. Business Relations2. SMEs and their role in a globalizing world3. Family Business4. PRODUCT placement – market study 5. Not widely known information about an international grouping

ELABORATION: Elaboration in teams per up to 8 people Presentation of the results - ppt possible, cca 10 min., structured way, clear outcomes (solutions, results)

PREZENTATION:- up to 10 min. / all the team members should be involved

Team projects presentation - schedule

6/10/2014 introductory lesson, setting the teams, choosing

topics

20/10/2014 guest lecture - Ananta Giri: Rethinking Economics:

With and Beyond Globalization and Towards Planetary

Realizations / consulting on the team projects

3/11/2014 lecture / consulting on the team projects

17/11/2014 Czech bank holidays

1/12/2014 presentation of teams 1 + 2

15/12/2014 presentation of teams 3 + 4, concluding the course

7.

LITERATURE SOURCES

Povinná literatura / Mandatory reading: Charles W. L. Hill: Global Business Today, McGraw-Hill/Irwin, 7th edition, 2011 Doporučená literatura / Recommended reading:Allan Sitkin, Nick Bowen: International Business, January 2010.  Stuart Wall, Dr. Bronwen Rees: International Business: A First Course, September 2009. Wild, J., Wild, K., Han, J.: International business: the challenges of globalization. 4th ed. – Pearson, Upper Saddle River, 2008. ISBN: 978-0-13-174743-6. Woods, M.: International business. Basingstoke, Palgrave, 2001. ISBN: 0-333-75979-6. Griffin, R.W., Pustay, M.W.: International business: a managerial perspective. 5th int. ed. - Upper Saddle River, Prentice Hall, 2007. ISBN: 0-13-233532-8

8.

State IB policy INSTRUMENTS

TRADE BARRIERS

= trade barrier is a general term that describes any government policy or regulation that restricts international trade - the barriers can take many forms

Most trade barriers work on the same principle: => the imposition of some sort of COST on trade that raises the price of the traded products

Trade barrier

Principle:

10.

Tariff & Non-tariff measures

NON-TARIFF Quota = qty restriction

TARIFF

- Fiscal- Protective- Retributive- Prohibitive

have important effects on consumption, production & structure of a domestic economy reason for imposing = e.g. protect infant industries

TARIFF & non-TARIFF

= a tax on imports, which is collected by the federal government and which raises the price of the good to the consumer. Also known as duties, tariffs usually aim first to limit imports and second to raise revenue.- Types of tariffs: Fiscal, Protective, Retributive, Prohibitive

QUOTA = is a LIMIT on the amount of a certain type of good that may be imported into the country. A quota can be either voluntary or legally enforced. ADMIN = Export licence / Subsidy / Harbour permitions / Local requirements: packaging, instruction, health, safety

TARIFF

NON-TARIFF

12.

Summary of basic IB BARRIERS

HRM in IB

Human Resource Management [HRM]

= activities an organization conducts to use its human resources

effectively

Strategic role of HRM is complex enough in DOMESTIC firm, but

even more complex in IB – issues arising from:

*staffing, *management development, *performance evaluation &

*compensation activities

Issues are complicated by profound differences between countries in: LABOR markets – specifics, labor law, labor habits, productivity CULTURE – elements influencing business and day-to-day work LEGAL systems Economic systems

14.

Basic elements of Culture

15.

LEGAL systems

EXPATRIATION - REPATRIATION

EXPATRIATE manager= a national of one country appointed to a management position in another country • career growth• experience • compensate

often overlooked problem: inclusion into comp.structure after REPATRIATION of the expat

Expatriate failure = premature return of an expatriate manager to the home country- Reasons in multinational companies – next slide

= expatriate selection – one way to REDUCE expat failure is by improving selection procedures (within HRM)

EXPATRIATION failure reasons

US multinationals:1. Inability of spouse to adjust2. Manager’s inability to adjust3. Other family problems4. Manager’s personal or emotional maturity5. Inability to cope with larger overseas responsibilities

JAPANESE multinationals:1. Inability to cope with larger overseas responsibilities 2. Difficulties with new environment3. Personal or emotional problems4. Lack o technical competence5. Inability of spouse to adjust

EUROPEAN multinationals:

Inability of spouse to adjust to new environment

QUESTIONS to prove knowledge in IB

What is / and what are typical TRADE BARRIERS?What state IB policy instruments do you know?What is a SANCTION, EMBARGO, DUAL USE, NATIONALIZATION? What is TARIFF and NON-TARIFF barrier to trade?What is QUOTA?What is EXPATRIATION? What is REPATRIATION?What issues are connected with expatriation most often?What are the main areas to deal with when expatriating?What is expatriate failure? What are the basic business analyses?

INTERNATIONAL BUSINESS RELATIONS

Thank you for your attention

Ing. Pavla Břečková, Ph.D.pavla.breckova@vsfs.cz