1. Ho Van Hien
Master in Business & Marketing Management
Tell :
Subject INTERNATIONAL BUSINESS
Class mail box :
Passwords :

2. INTERNATIONAL BUSINESS

3. GLOBALIZATION Global Business Environment
CHAPTER I
GLOBALIZATION Global Business Environment

4. Learning Objectives
Describe the process of globalization and how it affects markets and production.
Identify the two forces causing globalization to increase.
Summarize the evidence for each main argument in the globalization debate.
Identify the types of companies that participate in international business.
Describe the global business environment and identify its four main elements.

5. International Business

6. International Business

7. International Business

8. International Business

9. International Business

10. What is International Business?
Any commercial transactions that crosses the borders of two or more nations.

11. International Business
E- business (e-commerce)
Purchase, sale, or exchange of goods and services, as well as servicing customers, collaboration with business partners, and transactions within a company via computer networks.

12. International Business
Imports
All goods and services brought into a country that are acquired from organizations located abroad.
Exports
All goods and services produced or based in one country that are sold abroad.

13. Going International Legal & Political Social & Cultural differences
Economic
Differences
Legal & Political

14. Going International
Economic
Differences
Legal & Political

15. Going International Legal & Political Economic Differences

16. Going International

17. Globalization
Trend toward greater Economic , Cultural, Political, and Technological interdependence among national institutions and economies.

18. Globalization of Markets
Globalization of Markets refers to convergence in buyer preferences in markets around the world.
This trend is occurring in many product categories, including consumer goods, industrial products and business services.

19. Benefits of Globalization of Markets
Reduces marketing costs.
Creates New Market Opportunities.
Levels Uneven Income Streams.
Yet Local Needs are Important.

20. Globalization of Production
Globalization of Production refers to the dispersal of production activities to locations that help a company achieve its costs –minimization or quality- maximization objectives for a good or service.

21. Benefits of Globalization of Production
Provides access to Low-Cost Workers.
Provides access to Technical Expertise.
Provides access to Production Inputs.

22. Forces Driving Globalization
Falling Barriers to Trade & Investment
Technological Innovation
Measuring Globalization

23. Falling Barriers to Trade & Investment
General Agreement on Tariffs & Trade (GATT)
World Trade Organization (WTO)
Regional Trade Agreements
Trade Agreements & Trade Growth

24. Falling Barriers to Trade & Investment
GATT (General Agreement on Tariffs & Trade )
Treaty designed to promote free trade by reducing
both tariffs and non-tariff barriers to International trade.
+ 1947: 23 Nations
+ 1994: 123 Nations

25. Falling Barriers to Trade & Investment
WTO (World Trade Organization)
International Organization that regulates trade between nations.
Established: 1 January 1995
153 members (July 2008)
Location: Geneva, Switzerland
Website:

26. WTO

27. Falling Barriers to Trade & Investment
Regional Trade Agreements
NAFTA (North American Free Trade Agreement)
EU (European Union)
APEC (Asia Pacific Economic Co-orperation).

28. Regional Trade Agreements
NAFTA (North American Free Trade Agreement)
Establishment: 1 January, 2004
Members: 3
Website: http//
is the trade bloc in North America created by the North American Free Trade Agreement (NAFTA)

29. Regional Trade Agreements

30. Regional Trade Agreements
EU (European Union) (Brussels)
Establishment: European Commission (EC)
European Union (EU)
Members: 27
Website: eurid.eu
is a political and economic community of 27 member states, located primarily in Europe.

31. Regional Trade Agreements

32. Regional Trade Agreements
Brussels is home to the council and commission

33. Regional Trade Agreements
APEC (Asia Pacific Economic Coorperation)
Establishment: 1989
Members: 21
Headquarter: Singapore
Website: http//

34. Regional Trade Agreements

35. Regional Trade Agreements
APEC 2006 (VIETNAM)

36. Regional Trade Agreements
APEC 2006 (VIETNAM)

37. Trade Agreements and Trade Growth
GDP (Gross Domestic Product).
Value of all goods and services produced by a country’s domestic economy over a 1-year period.
GNP (Gross National Product)
Value of all goods and services produced by a country during a 1-year period, including income generated by both domestic and International activities.
GDP or GNP per Capita
Nation’s GDP or GNP divided by its population.

38. Technological Innovation
and Videoconferencing
Internet and World Wide Web
Company Intranets and Extranets
Advancements in Transportation Technologies

39. Measuring Globalization
Political
engagement
Technological
connectivity
Economic
Integration
Personal
contact

40. Measuring Globalization
Globalization’s Top 20

41. Untangling the Globalization Debate
Today’s Globalization in Context
The current Globalization Backlash.
Globalization’s Impact on Jobs and wages.
Globalization’s Impact on Labor and Environmental Regulation.
Globalization & Income Inequality.
Globalization & National Sovereignty.
Globalization’s Influence on Cultures.

42. Today’s Globalization in Context
First World War
Second World War
The cold war
Russian Revolution
The Great Depression
The collapse of the Wall Berlin.
The threw off the chain of communism
Embrace freedom, Democratic institutions, and Free market
Trade, capital and labors flow more freely

43. The current Globalization Backlash
World Bank (WB)
Agency created to provide financing for national economic
development efforts.

44. The current Globalization Backlash
International Monetary Fund (IMF)
Agency created to regulate fixed exchange rates and enforce
the rules of the international monetary system.

45. Globalization’s Impact on Jobs and wages
Globalization Costs Jobs & Lowers Wages
Eliminates jobs in developed Nations.
Forces Wages lower in developed Nations
Exploits workers in Developing Nations

46. Globalization’s Impact on Jobs and wages
Globalization Creates Jobs & Boosts Wages
Increases Wealth & Efficiency
Generates Labor Market Flexibility
Creates Jobs in Developed Nations
Advances Developing Nations’ Economies
Summary of the jobs & Wages Debate

47. Globalization’s Impact on Labor & Environmental Regulation
Labor Standards
Environmental Protection
Developing Future Markets

48. Globalization & Income Inequality
Inequality within Nations
Inequality between Nations
Global Inequality

49. Globalization & National Sovereignty
Globalization: Menace to Democracy
Globalization: Guardian of Democracy

50. Key Players in International Business
Multinational Corporation (MNC)
Business that has direct investments abroad in multiple
countries.
Entrepreneurs & Small Businesses
Born- Global Firm: Company that takes a global perspective on its market and engages in international business from or near its inception

51. Why International Business Is Special
The Global Business Environment
The Forces of Globalization
Many National Business Environment
The International Business Environment
International Firm Management
The Road Ahead for International Business

52. THE END