Professional Documents
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International Business and Its Environment
International Business and Its Environment
GLOBALIZATION ENCOMPASSES:
CONT.
Chapter No. 1 Page No. 3
GLOBALIZATION ENCOMPASSES:
TRADING.
SERVICES.
INVESTMENTS.
Chapter No. 1 Page No. 5
CONT.
Chapter No. 1 Page No. 5
1. PROFIT ADVANTAGE:
INTERNATIONAL BUSINESS COULD INCREASE THE TOTAL
PROFIT.
THE AVERAGE COST OF PRODUCTION WILL BE THE
LOWEST IF THE PLANT IS OPERATED AT OPTIMUM
CAPACITY.
ADVANTAGE OF CHEAP LABOUR.
2. GROWTH OPPORTUNITIES:
IN A NUMBER OF DEVELOPING COUNTRIES INCOME AND
POPULATION ARE RAPIDLY INCREASING.
FOREIGN MARKETS PROVIDE ENORMOUS GROWTH
OPPORTUNITIES FOR THE DEVELOPING COUNTRY FIRMS.
Chapter No. 1 Page No. 7
i
INTERNAL EXTERNAL
BUSINESS
ENVIRONMENT ENVIRONMENT
DECISIONS
INTERNAL ENVIRONMENT.
INTERNAL ENVIRONMENT:
VALUE SYSTEM.
i
MISSION AND OBJECTIVES.
HUMAN RESOURCES.
CONT..
Chapter No. 1 Page No. 14
INTERNAL ENVIRONMENT:
OTHER FACTORS:
PHYSICAL ASSETS AND FACILITIES.
R&D AND TECHNOLOGICAL CAPABILITIES.
MARKETING RESOURCES.
FINANCIAL FACTORS.
Chapter No. 1 Page No. 15
MICRO ENVIRONMENT:
SUPPLIERS.
CUSTOMERS.
COMPETITORS.
MARKETING INTERMEDIARIES.
PUBLICS.
Chapter No. 1 Page No. 19
DOMESTIC ENVIRONMENT.
FOREIGN ENVIRONMENT.
GLOBAL ENVIRONMRNT.
Chapter No. 1 Page No. 21
IMPLICATIONS OF DIFFERENCES IN
BUSINESS ENVIRONMENT
IMPLICATIONS OF DIFFERENCES IN
BUSINESS ENVIRONMENT
THE KEY TO SUCCESSFUL INTERNATIONAL BUSINESS IS
ADAPTION TO THE DIFFERENCES IN THE ENVIRONMENT
THAT USUALLY EXIST FROM ONE MARKET TO ANOTHER.
REGION STATES
REGION STATES
UNEQUAL ACCESS.
ECONOMIC POLICIES
INDUSTRIAL POLICY.
TRADE POLICY.
FOREIGN EXCHANGE POLICY.
MONETRAY POLICY.
FISCAL POLICY.
FOREIGN INVESTMENT AND TECHNOLOGY POLICY.
Chapter No. 1 Page No. 35
INDUSTRIAL POLICY
TRADE POLICY
FISCAL POLICY
ECONOMIC CONDITIONS
THEY INCLUDE :
A SET OF EXTERNAL FACTORS.
A SET OF INTERNAL FACTORS.
THE REAL EXCHANGE RATE.
CONT.
Chapter No. 1 Page No. 38
ECONOMIC CONDITIONS
EXTERNAL FACTORS:
REASONS:
INDUSTRIAL POLICY
POLICY TOWARDS FOREIGN CAPITAL AND
TECHNOLOGY.
FISCAL POLICY.
EXPORT - IMPORT POLICY.
Chapter No. 1 Page No. 43
1. REGULATION.
2. PROMOTION.
3. ENTREPRENEURSHIP.
4. PLANNING.
Chapter No. 1 Page No. 43
REGULATORY ROLE
REGULATORY ROLE
PROMOTIONAL ROLE
ENTREPRENEURIAL ROLE
PLANNING ROLE
ECONOMIC SYSTEMS
MIXED ECONOMIES.
1. COMMON LAW.
3. THEOCRATIC LAW.
Chapter No. 1 Page No. 51
CATEGORIES OF LAWS
INCOTERMS
SETTLEMENT OF DISPUTES
ON
PACKAGING MATERIALS.
METHOD OF PACKAGING.
PACKAGING STANDARDS.
CERTAIN MANDATORY DISCLOSURES TO BE MADE.
LABELING IN LOCAL LANGUAGE IS COMPULSORY IN
SOME COUNTRIES.
Chapter No. 1 Page No. 54
REGULATION OF PROMOTION
REGULATION OF PROMOTION
INDIAN LAWS
THE OBJECTIVE OF THE FOREIGN TRADE (DEVELOPMENT
AND REGULATION)ACT1992, IS TO PROVIDE FOR THE
DEVELOPMENT AND REGULATION OF FOREIGN TRADE
BY FACILITATING IMPORTS AND AUGMENTING EXPORTS
FROM INDIA AND MATTERS CONNECTED THEREWITH OR
INCIDENTAL THERETO.
THE ACT EMPOWERS THE CENTRAL GOVT. TO:
(i) MAKE PROVISIONS FOR THE DEVELOPMENT AND
REGULATION OF FOREIGN TRADE BY FACILITATING
IMPORTS AND INCREASING EXPORTS AND
(ii) MAKE PROVISIONS FOR PROHIBITING, RESTRICTING OR
OTHERWISE REGULATING THE IMPORTS AND EXPORTS
OF GOODS.
Chapter No. 1 Page No. 55
INDIAN LAWS
SOME LAWS WHICH CONTROL THE TRADE IN CERTAIN
ITEMS e.g.
THE EXPORT OF ANTIQUITIES IS REGULATED UNDER THE
ANTIQUITIES AND ART TREASURE ACT,1972.
EXPORT OF COFFEE IS REGULATED BY THE COFFEE
BOARD UNDER THE INDIAN COFFEE ACT,1942.
EXPORT OF TEA IS REGULATED UNDER THE TEA
ACT.1953.
NO EXPORT OF ANY GOODS CAN BE MADE WITHOUT
OBTAINING CUSTOMS CLEARANCE UNDER THE
CUSTOMS ACT 1962.
LEGISLATIONS FOR EXPORT REGULATION IS THE
EXPORT (QUALITY CONTROL AND INSPECTION) ACT 1963.
Chapter No. 1 Page No. 56
DEMOGRAPHIC ENVIRONMENT
DEMOGRAPHIC FACTORS SUCH AS:
SIZE OF THE POPULATION.
POPULATION GROWTH RATE.
AGE COMPOSITION.
ETHNIC COMPOSITION.
DENSITY OF POPULATION.
RURAL URBAN DISTRIBUTION.
FAMILY SIZE.
INCOME LEVEL.
HAVE VERY SIGNIFICANT IMPLICATIONS ON BUSINESS.
Chapter No. 1 Page No. 57
MEANING OF CULTURE
(CONCEPT OF CULTURE BY FRANCIS MERILL )
CULTURE :
IS THE CHARACTERISTICALLY HUMAN PRODUCT OF
SOCIAL INTERACTION.
PROVIDES SOCIALLY ACCEPTABLE PATTERNS FOR
MEETING BIOLOGICAL AND SOCIAL NEEDS.
IS CUMULATIVE FOR, IT IS HANDED DOWN FROM
GENERATION TO GENERATION.
IS MEANINGFUL TO HUMAN BEINGS BECAUSE OF ITS
SYMBOLIC QUALITY.
CONT..
Chapter No. 1 Page No. 63
MEANING OF CULTURE
(CONCEPT OF CULTURE BY FRANCIS MERILL )
CULTURE :
ELEMENTS OF CULTURE
ORGANISATION OF CULTURE
ORGANISATION OF CULTURE
CULTURAL ADAPTATION
CULTURAL SHOCK
CULTURAL TRANSMISSION
SYMBOLIC COMMUNICATION.
LANGUAGE.
LITERATURE.
FILM.
TELEVISION AND SOME OTHER ELECTRONIC GADGETS.
SOCIAL INSTITUTIONS.
ADVERTISING AND MARKETING TECHNIQUES.
Chapter No. 1 Page No. 68
CULTURAL TRANSMISSION
CULTURAL CONFORMITY
UNIVERSALISM:
HERE THE FOCUS IN MORE ON RULES THAN ON
RELATIONSHIP.
PARTICULARISM :
HERE THE FOCUS IS ON RELATIONSHIP AND TRUST ,
LEGAL CONTRACTS OFTEN ARE MODIFIED, AND AS THE
PEOPLE GET TO KNOW EACH OTHER BETTER, THEY
OFTEN CHANGE THE WAYS IN WHICH DEALS ARE
EXECUTED.
Chapter No. 1 Page No. 70
TROMPENAARS RECOMMENDS:
TROMPENAARS RECOMMENDS:
TROMPENAARS RECOMMENDS:
TROMPENAARS RECOMMENDS:
TROMPENAARS RECOMMENDS:
RELIGION
RELIGION
RELIGION
ETHNO DOMINATION
CONT.
Chapter No. 1 Page No. 76
ETHNO DOMINATION
LANGUAGE
LANGUAGE
ETIQUTTES
ETIQUTTES
GEOGRAPHICAL ENVIRONMENT
GEOGRAPHICAL ENVIRONMENT
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