Cba 300 Ch 1 Notes

CBA 300Section 01 ? Dr. Sam Min CBA353 ? Office Hours Friday 800am 1000am ? Read your text book first, come & take nones, and read newspapers ? Tests atomic number 18 straightforward, text, weakly reading, and lectures examination 1 September 14 Chapters 1, 2, 3 TEST 2 October 5 Chapters 4, 5, 6, 7 TEST 3 October 26 Chapters 8, 9, 10, 11 TEST 4 November 16 Chapters 12, 13, 14, 15 FINAL Final hebdomad Chapters 16, 17, 18 Assignments & in-class activities Total (50 points) (50 points) (50 points) (50 points) (50 points) (30 points) 280 points CBA 300Section 01 The grading system entrust be as follows Total points Possible 280 252 and more = A 224 to 251 = B 196 to 223 = C 168 to 195 = D Less than 167 = F 2 3 ASSIGNMENTS 1-5 enthral read any article of your interest, which is related to transnational line and (1) sum the article (1/2 page) and (2) discuss what you learned from reading the article (1/2 page). Do not write more than 1 page. Use 12 font size, 1. 5 spaced, 1-inch margins, and Times New Roman. This assignment is worth maximal 4 points. Due is on each testing date 4 Chapter 1 The Challenging universe of discourse of multinational Business International Business 13e by Ball, Geringer, McNett, and Minor 5 wherefore you need spherical blood line perspective? Having a foreign perspective gives you an advantage not tho for doing credit line outside U. S. still domestically, where we have the most diverse participation in the world. Carlos Gutierrez, the CEO of Kellogg & US 35th Secretary of Commerce 6CEOs of facts larges Ameri crumb corporations strongly believe (1) An global orientation should be an important part of college business education (2) International business skills and experience were important not merely for promotion to senior executive positions, but also for appointment to entry-level positions, and across a broad array of operational as well as cross-functional beas (3) The above two points ar plain more impo rtant for those anticipating global activities add-on in the next five years. 7 My suggestions 1) Take IB course(s) (2) Consider going overseas (exchange program, intern, English teacher, volunteer, mission, and so on ) (3) Learn foreign language 8 Topics What is international business? IB Concepts and vii dimensions for globalizing a business What is different about international business? issue of international firms and IB What is globalization? The drivers of globalization 9 What is International Business? International Business (IB) any business transaction across national borders carry on in goods Cross-border runs ? consulting, advertising, egal, financial, accounting ? tourism, banking, communications/media, construction management, etc. caller-out activity inputs whitethorn involve IB activity even if outputs do not Firms revenues may come totally from the ingleside field Key raw materials, knowledge, military operationes may come partially or entire ly from other countries Concepts of International Companies A Multidomestic Company has multi- realm affiliates, each of which formulates its own business strategy based on perceived market difference A Global Company attempts to standardize and integrate operations worldwide in all functional areas. 1 The 7 Dimensions for Globalizing a Business 1. 2. 3. 4. 5. 6. 7. 1-12 result Markets Promotion Where value is added hawkish strategy Use of non-home-country personnel achievement of global ownership in firm What is Different about International Business? International Business deals with 3 environmental forces 1. Domestic 2. foreign 3. International Domestic Business deals with the domestic market Butmay face foreign competition in domestic market 1-13 Why is International Business Different? Forces in the Environment ?Environmental forces can be classified as external or internal. External forces are uncontrollable, but perhaps can be influenced by mgmt. Internal forces are controllable by mgmt, but not completely. 14 External Forces Competitive Kind, number, location Distributive For distributing goods and services Economic GNP, unit labor speak to, individualised consumption expenditure Socioeconomic Characteristics of human population Financial evoke rates, inflation rates, taxation 15 External Forces, contd. Legal Laws governing how international firms must operate Physical Topography, climate, and natural resources Political Forms of government, and international organizations sociocultural Attitudes, beliefs, and opinions Labor Skills, attitudes of labor scientific Equipment and skills that affect how resources are converted to products 16 Internal Environmental Forces Factors of Production Capital, raw materials, and people Activities of the organization Personnel, finance, production, and merchandise 17Explosive harvest-festival Exporting transportation of any domestic good/service to a destination outside a co untry or sphere The level of world merchandise exports increased from $2 trillion (1980) to $15. 24 trillion (2010). Service $365 billion (1980) to $3. 7 trillion (2010). 18 Growth in the volume of world merchandise exports and production, 2000-2007 2000-07 World merchandise exports farming(a) products Fuels and mining products Manufactures 5. 5 4. 0 3. 5 6. 5 2005 6. 5 6. 0 3. 5 7. 5 2006 8. 5 6. 0 3. 5 10. 0 2007 6. 0 4. 5 3. 0 7. 5World merchandise production Agriculture Mining Manufacturing World GDP 3. 0 2. 5 1. 5 3. 0 3. 0 3. 0 2. 0 1. 5 4. 0 3. 0 3. 0 1. 5 1. 0 4. 0 3. 5 4. 0 2. 5 0. 0 5. 0 3. 5 Note See the Metadata for the estimation of world aggregates of merchandise exports, production and GDP. 19 Growth in volume of world merchandise trade and GDP, 2000-11 (Annual % change) starting time WTO 2011a Figures of 2011 are projections 20 Explosive Growth ? Foreign Direct investment funds Direct investment in equipment, structures, and organizations in a foreign country level sufficient to obtain evidential anagement control World personal line of credit of outward FDI was $19 trillion at the beginning of 2010 (9 times big than what it was in 1990). 21 Number of International Companies Keeps expanding and the big get bigger. ExxonMobil gross sales for 2011 $486 billion Wal-Mart sales revenue for 2011 $446 billion 22 Globalization the process of transformation of local or regional things or phenomena into global ones. technological globalization Political globalization Economic globalization Cultural globalization 23 Globalization Economic Globalization is the international integration of goods, technology, labor, and capital. refers to the implementation of global strategies which link and coordinate a firms international activities on a worldwide basis. 24 Drivers of Globalization Political Drivers Technological Drivers Market Drivers Cost Drivers Competitive Drivers 1-25 Political There is a campaign toward the unificatio n and socialization of the global community. NAFTA and the European Union present significant marketing opportunities for companies. the progressive reduction of barriers to trade and foreign investment by most governments. the privatization of much of the industry in formerly communist nations. 26 Technology Advancements in computers and communication technology are permitting an increased escape of ideas and information across borders. The Internet and network computing enable trivial companies to compete globally. Business to business commerce is experiencing significant savings by using the Internet for business exchanges. Foreign outsourcing more and more gross 27 Globalization Forces Market As companies globalize, they also become global customers. Companies follow customers abroad in order to avoid a foe stealing the account. The saturation of the home market also sends companies into foreign markets. offspring of global customers 28 Cost Economies of scale to reduce unit cost are always a management goal. Globalizing product lines to reduce development, production, and memorial costs can help achieve economies of scale. Companies can also position production in countries where production costs are lower. 29Competitive Competition continues to increase in intensity. Companies are defending their home markets from competitors by entering the competitors home markets to distract them. 30 Views On Globalization Arguments Supporting Globalization Enhances socioeconomic development Concerns with Globalization Uneven results across nations and people Promotes more and divulge jobs Deleterious effects on labor and labor standards Decline in environmental and health conditions 1-31 $1. 25 per Euro Crude Oil ($94. 61) Gold ($1,653. 5) feed ($8. 10 per bushel)