INTERNATIONAL BUSINESS

Dr. Anshu Sharma| BBA| Session 1

SESSION PLAN
Sub-Sessions Time

Course Outline & Positioning 15 mins

Class Activity 1: Case Discussion 15 mins

CHAPTER 1: Introduction to International Business 30 mins

Class Activity 2: Country Clusters 15 mins

Task for the Next Session 15 mins

COURSE POSITIONING

CORE
•ECONOMICS
•MARKETING
COURSE •Foreign trade practices
•International HRM
•STRATEGY •INTERNATIONAL BUSINESS •International Marketing
•BUSINESS, GOVERNMENT •International Financial
& SOCIETY Systems

PRE- FOLLOW UP
REQUISITES COURSES
COURSE OUTLINE
• Learning outcomes
• Session plan
• Text Book
• Chapters
• Assessments
• Group and Individual assessments
LEARNING OUTCOMES
• Understand what is meant by the term globalization.
• Be familiar with the main drivers of globalization.
• Appreciate the changing nature of the global economy.
• Understand the main arguments in the debate over the
impact of globalization.
• Appreciate how the process of globalization is creating
opportunities and challenges for business managers.
SNEAK PEEK IN OUR DAILY LIFE
• Describe how international business has affected you in your
day so far.
• Our consumption patterns are already very dependent on
international business.
• Integrated world economy versus distinct national economies
• Whether talking about the nationality of a product makes
sense today?
INTERNATIONAL STRATEGY MODULE
• Presumption: firm has a competitive advantage in its core
business in the domestic market
• Profitability is the rate of return the firm makes on its invested
capital
• lower costs (Realize location economies/experience economies)
• add value and raise price

• Profit growth is the percentage increase in net profits over

time
• sell more in existing markets
• expand internationally
GLOBALIZATION
• Globalization is a shift toward a more integrated and
interdependent world economy
• The Globalization of Markets
• emergence of a global marketplace
• Why?
• falling barriers to cross-border trade have made it easier to sell internationally
• consumer tastes and preferences are converging on some global norm
• firms are facilitating the trend by offering standardized products worldwide
• The Globalization of Production
• sourcing of goods and services from locations around the globe to take advantage of
national differences in the cost and quality of factors of production
• Why?
• lower their overall cost structure
• improve the quality or functionality of their product offering
• compete more effectively
FACTORS DRIVING GLOBALIZATION
• Declining barriers to the free flow of goods, services, and capital
• average tariffs are now at just 4%
• more favorable environment for FDI
• global stock of FDI was $20.4 trillion in 2011
• facilitates global production
• Technological change
• microprocessors and telecommunications
• Internet: information backbone of the global economy
• transportation technology
• Lower barriers to trade and investment mean firms can
• view the world, rather than a single country, as their market
• base production in the optimal location for that activity

• But, firms may also find their home markets under attack by foreign firms
GLOBALIZATION DEBATE
• Is the shift toward a more integrated and interdependent
global economy a good thing?
CRITICAL THINKING QUESTIONS
o How Does Globalization Affect Jobs And Income?
o How Does Globalization Affect Labour Policies, and the
Environment?
o How Does Globalization Affect National Sovereignty?
o How Is Globalization Affecting The World’s Poor?
o How Does The Global Marketplace Affect Managers?
CRITICS
• Jobs are being lost to low-wage nations
• Free trade encourages firms from advanced nations to move
manufacturing facilities offshore to less developed countries
with lax environmental and labor regulations
• The gap between rich and poor has gotten wider and that the
benefits of globalization have not been shared equally
• Economic power is shifting away from national governments
and toward supranational organizations such as the world
trade organization (WTO), the European union (EU), and the
united nations (UN) – issue of national sovereignty
SUPPORTERS
• Free trade will result in countries specializing in the production of
those goods and services that they can produce most efficiently,
while importing goods and services that they cannot produce as
efficiently
• Tougher environmental regulation and stricter labour standards go
hand in hand with economic progress and that foreign investment
often helps a country to raise its standards
• Power of these supranational organizations is limited to what nation-
states agree to grant, and that the power of the organizations lies in
their ability to get countries to agree to follow certain actions
• Actions of governments have made limited economic improvement
in many countries
CROSS COUNTRY ANALYSIS
NEXT SESSION

Session 2: Caselets and finalizing Indian companies operating in the country

of your respective cultural cluster

Session 3: Group 1 case presentation on Friday, 8th Feb: Who Makes the
Apple iPhone?