Foundations CHAPTER OVERVIEW As more firms enter the international marketplace, the competitive environment is more complex than ever. How can firms determine their level of competitiveness in a marketplace of expanded and increasingly intense rivalry? This chapter seeks to answer that question in a multi-faceted manner. First, the concepts of country-specific and firm-specific advantages are presented from the theories of international trade and the multinational firm. Firms must be aware
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world are interdependent. management orientations Ethnocentric orientation His/her home superior to the rest. Opportunities outside the home country are largely ignored domestic companies. Those who conduct business outside home country international companies: products of home country are superior. Leads to standardized or extension approach. Major internal weakness. Polycentric orientation The opposite. Each country is unique localized or adaptation approach. Such a company is an multinational
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EXPANDING ABROAD: MOTIVATIONS & MEANS INTERNATIONAL BUSINESS: It consists of transactions that are devised and carried out across national borders to satisfy the objectives of individuals, companies, and organizations The main characteristics of the international business are: - flow of ideas, services and capital across the world - new choices to consumers - acquisition of a wider variety of products is offered - the mobility of labor, capital and tech
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in a certain country grants access to strategic resources or there are cluster effects to be explored in a specific region. The decision makers of the companies that are becoming international have different experiences and are in different situations which influence their decision to take the step into the international market. Internationalization readies a company’s product and services for global markets and ensures it can be localized easily. Products that are internationalized often must be
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Introduction: International Business means performance of cross border economic activities to maximize long run total profit. In case of International Business we are suppose to follow some domestic regulations and some international regulations. Legally banks and financial institutions can only facilitate payments. However, in International Business global economy is the market profit opportunities are huge. The definition of international business focuses on transactions. The use of this term
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OUTCOMES The application of trade theory to explain the benefits of engaging in International Trade Economic Implications of a country’s membership of a trading bloc for a business Compare the various types of Foreign Direct Investment (FDI) and analyze how they may affect the various countries involved as well as the businesses within these countries INTERNATIONAL TRADE THEORY Four Theories of International Trade are: Absolute Advantage Product Life-cycle Theory New Trade Theory
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INTERNATIONAL BUSINESS Definition of international business International business involves commercial activities that cross national frontiers. It concerns the international movement of goods, capital, services, employees and technology; importing and exporting; cross-border transactions in intellectual property (patents, trademarks, know-how, copyright materials, etc.) via licensing and franchising; investments in physical and financial assets in foreign countries; contract manufacture or
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38 3 The global context of business Chris Britton Businesses of all sizes operate in international markets – products are sold across borders; the resources used in production can come from anywhere in the world; communication is instantaneous; and financial markets are inextricably linked, as the events of 2008 demonstrate. Individual businesses operate across borders in a variety of ways – they can do this directly, through the formation of strategic alliances or through merger and takeover
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Market entry strategy and distribution channels Market entry strategies To select the most effective route to market you’ll need a clear understanding of your target market and the needs and preferences of your target customers. Before entering a new market, you’ll also need to take time to evaluate your business and its strengths and weaknesses. Ask yourself the following questions: • How is business done in our industry sector and in our target market? • Where are the potential customers located
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Confirming Pages CONTENTS PREFACE xv PART 1 CHAPTER 1 GLOBAL MARKETING ENVIRONMENTS 1 Understanding Global Markets and Marketing 2 markets are becoming global 2 globalization: the world is becoming smaller 3 globalization and global marketing 4 Globalization: Opportunity or Threat? The Global Marketing Approach 6 6 global marketing and global markets 7 the cage distance framework 7 domestic and global marketing compared 8 Geographic or Spatial Distance 10
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