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 Ho Van Hien
 Master in Business & Marketing Management
 Tell
: 09.08.28.58.68
 Email: [email protected]
 Subject INTERNATIONAL BUSINESS
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INTERNATIONAL BUSINESS
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CHAPTER I
GLOBALIZATION
Global Business Environment
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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.
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International Business
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International Business
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International Business
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International Business
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International Business
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What is International Business?
Any commercial transactions that crosses the borders of
two or more nations.
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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.
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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.
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Going International
Social & Cultural
differences
Economic
Differences
Legal & Political
Differences
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Going International
Economic
Differences
Legal & Political
Differences
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Going International
Legal & Political
Differences
Economic
Differences
http://vietnamnet.vn/chinhtri/2009/05/846521/
http://www.vietnamembassyisrael.org/vi/vnemb.vn/tin_hddn/ns090522110235
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Going International
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Globalization
Trend toward greater Economic ,
Cultural, Political, and Technological
interdependence among national
institutions and economies.
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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.
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Benefits of Globalization of Markets
Reduces marketing costs.
Creates New Market Opportunities.
Levels Uneven Income Streams.
Yet Local Needs are Important.
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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.
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Benefits of Globalization of Production
Provides access to Low-Cost Workers.
Provides access to Technical Expertise.
Provides access to Production Inputs.
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Forces Driving Globalization
Falling Barriers to Trade & Investment
Technological Innovation
Measuring Globalization
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Falling Barriers to Trade & Investment
General Agreement on Tariffs & Trade (GATT)
World Trade Organization (WTO)
Regional Trade Agreements
Trade Agreements & Trade Growth
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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
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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: www.wto.int
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WTO
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Falling Barriers to Trade & Investment
Regional Trade Agreements
NAFTA (North American Free Trade Agreement)
EU (European Union)
APEC (Asia Pacific Economic Co-orperation).
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Regional Trade Agreements
NAFTA (North American Free Trade Agreement)
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Establishment: 1 January, 2004
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Members: 3
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Website: http//www.nafta-sec-alena.org
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is the trade bloc in North America created by the North American Free Trade
Agreement (NAFTA)
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Regional Trade Agreements
Membership
Canada
Mexico
United States
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Regional Trade Agreements
EU (European Union) (Brussels)
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Establishment: + 1957 European Commission (EC)
+ 1993 European Union (EU)

Members: 27

Website: eurid.eu
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is a political and economic community of 27 member
states, located primarily in Europe.
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Regional Trade Agreements
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Regional Trade Agreements
Brussels is home to the council and commission
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Regional Trade Agreements
APEC (Asia Pacific Economic Coorperation)
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Establishment: 1989
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Members: 21
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Headquarter: Singapore
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Website: http//www.apec.org
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Regional Trade Agreements
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Regional Trade Agreements
APEC 2006 (VIETNAM)
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Regional Trade Agreements
APEC 2006 (VIETNAM)
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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.
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Technological Innovation

E-mail and Videoconferencing

Internet and World Wide Web

Company Intranets and Extranets

Advancements in Transportation Technologies
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Measuring Globalization
Political
engagement
Economic
Integration
Technological
connectivity
Personal
contact
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Measuring Globalization
Globalization’s Top 20
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100
Series1
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60
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20
0
Ireland
Canada
Sweden
Portugal
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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.
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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
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The current Globalization Backlash
World Bank (WB)
Agency created to provide financing for national economic
development efforts.
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The current Globalization Backlash
International Monetary Fund (IMF)
Agency created to regulate fixed exchange rates and enforce
the rules of the international monetary system.
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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
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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
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Globalization’s Impact on Labor & Environmental Regulation
Labor Standards
Environmental Protection
Developing Future Markets
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Globalization & Income Inequality
Inequality within Nations
Inequality between Nations
Global Inequality
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Globalization & National Sovereignty
Globalization: Menace to Democracy
Globalization: Guardian of Democracy
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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
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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
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THE END
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