1. University Of Finance & Administration Pavla Břečková [Ing., Ph.D.]
INTERNATIONAL BUSINESS
[NA_IB]
Pavla Břečková [Ing., Ph.D.]

2. INTERNATIONAL BUSINESS – 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

3. 12 lectures (per 90 mins) - Finished by: exam
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 30
12 – 14 points = E
15 – 17 = D
18 – 20 = C
= B
24 – 30 = A

4. 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

5. CASE study - elaboration
CASE study on one of these topics:
1. Business Relations
2. SMEs and their role in a globalizing world
3. Family Business
4. 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 5

6. Team projects presentation - schedule
6/10/2014 introductory lesson, setting the teams, choosing topics
20/10/2014 lecture / consulting on the team projects
3/11/2014 guest 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, ISBN:
Woods, M.: International business. Basingstoke, Palgrave, ISBN:
Griffin, R.W., Pustay, M.W.: International business: a managerial perspective. 5th int. ed. - Upper Saddle River, Prentice Hall, ISBN:

8. State IB policy INSTRUMENTS
state decides about their imposition
TARIFF x NON-TARIFF
state’s intention:
either reduce IMPORT
or support EXPORT
AUTONOMOUS (independent, one-sided)
result of negotiations
BILATERAL (business agreements, credit / loan agreements etc.)
MULTILATERAL (integration unions) bilaterální (dvoustranné):
CONTRACTUAL

9. TRADE BARRIERS
Trade barrier
= 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
Principle:

10. Protective Retributive Prohibitive Tariff & Non-tariff measures
have important effects on consumption, production & structure of a domestic economy
reason for imposing = e.g. protect infant industries
NON-TARIFF
Quota = qty restriction
TARIFF
Fiscal
Protective
Retributive
Prohibitive

11. TARIFF & non-TARIFF
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
NON-TARIFF

12. Other PROTECTI-ONIST measures Dual use / ‘use conditional’
Summary of basic IB BARRIERS
WEAK IB
Prohibitive TARIFFS
QUOTAS
IMPORT DUTIES
Other PROTECTI-ONIST measures
Sanctions & Embargo
Dual use / ‘use conditional’
Nationali-zation

13. Human Resource Management [HRM]
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
Language
Communi-cation
Religion
Values & Attitudes
Social structure
14. 14

15. COMMON / CASE law CIVIL law RELIGIOUS law BUREAUCRATIC law
LEGAL systems
Cases create legal precedents
COMMON / CASE law
Detailed listing what IS and IS NOT permissible
CIVIL law
Based on the faith & practice of a particular religion
RELIGIOUS law
Often in communist and dictatorships
is whatever the country’s bureaucrats say it is
BUREAUCRATIC law

16. 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)

17. EXPATRIATION failure reasons EUROPEAN multinationals:
US multinationals:
1. Inability of spouse to adjust
2. Manager’s inability to adjust
3. Other family problems
4. Manager’s personal or emotional maturity
5. Inability to cope with larger overseas responsibilities
JAPANESE multinationals:
1. Inability to cope with larger overseas responsibilities
2. Difficulties with new environment
3. Personal or emotional problems
4. Lack o technical competence
5. Inability of spouse to adjust
EUROPEAN multinationals:
Inability of spouse to adjust to new environment

18. 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?

19. Thank you for your attention
INTERNATIONAL BUSINESS
Thank you for your attention
Ing. Pavla Břečková, Ph.D.