Introduction to International

Management
Organisation – Globalisation – Case studies

Dr. Maciej Korzeniowski

Organisation of the course
Classes will be based on the group discussion
and case studies
• Exercises and discussion related to selected topic
• Handbook: Cavusgil, Knight, Riesenberger, International Business, The
New Realties, 2018. Available in the ALK library
• Grading based on test and group grade based on the case study. Test
will be held during the last class: 20 questions on Inspera assessment
system
• Participation in classes in obligatory.
Grading of the case studies
• One grade for the whole team
• There will be several opportunities for each team to present. Grading
from 2-5
• Answers should be based on the case material and not guessing or
knowledge of the industry.
• What is assessed:
a. Content of the presentation – Did you answer the question in full? Completeness
b. Based on the case – use of the data from the case.
c. Structure of the presentation – Clear flow, no repetition, prioritisation,
d. Participation of the whole team in the presentation
Scope of the test will cover basic concepts in
the international management
• Globalisation
• International Trade Theories
• Risk in the international business
• Motives and forms of internationalisation
• Culture in the international management
• Strategy of the international company
• Organisation structures of global companies
• International value chain
• International marketing
Office hours on Teams
Every Monday 16.30 – 17.30

mkorzeniowski@kozmiński.edu.pl or on teams

Please arrange a meeting or a call in advance

Introduction to International
Management
International Business – A Firm Level Activity

Performance of trade and investment

activities by firms across national
borders.

Source: Cavusgil, Knight, Riesenberger, International Business, The New Realties, 2018

International Business: Strategy, Management,

and the New Realities
The Internationalization of Business

• Companies conduct value-adding activities on a global scale, primarily

to organize, source, manufacture, and market

• A “level playing field” has made international activities appealing to

all types of firms- large and small; manufacturing and service sectors
(e.g. banking, transportation, engineering and design, advertising,
and retailing).

International Business: Strategy, Management,

and the New Realities
The Nature of International Business
• All value-adding activities including sourcing, manufacturing,
and marketing, can be performed in international locations

• The subject of cross-border trade can be products, services,

capital, technology, know-how, and labor

• Firms internationalize via exporting, foreign direct

investment, licensing, franchising, and collaborative ventures

International Business: Strategy, Management,

and the New Realities
International Trade

Exchange of products and services across

national borders; typically through exporting
and importing.

International Business: Strategy, Management,

and the New Realities
Exporting

Sale of products or services to customers

located abroad, from a base in the home
country or a third country.

International Business: Strategy, Management,

and the New Realities
Importing or Global Sourcing

Procurement of products or services from

suppliers located abroad for consumption in
the home country or a third country.

International Business: Strategy, Management,

and the New Realities
Globalisation
• What is globalisation?

• Please provide examples of globalisation in several aspects of life.

• Please provide examples of international organisations / companies.

Globalization of Markets: A Macro Concept
• Two mega trends have altered the international business landscape:
globalization and technological advances.
• Market globalization refers to the interconnectedness of national
economies and growing interdependence of buyers, producers,
suppliers, and governments in different countries.

• Globalization allows firms to view the world as one large marketplace

for goods, services, capital, labor, and knowledge.

International Business: Strategy, Management,

and the New Realities
Forces leading to the globalisation
Technical

Economical Globalisation Social

Political
Exercise
• Why globalisation has been progressing so fast? Which forces have
accelerated globalisation? Please provide examples and explain their
impact.
• Technological forces
• Social forces
• Political forces
• Economical forces

• Please prepare 3-5 examples for each of the forces.

Technical forces
• Industrialization
• Transport revolution
• Information and communications revolution
Social forces

• Unification of customer preferences

• Unification of education and qualifications
• Migrations
Political forces
• Reduction in trade barriers - WTO
• International Intellectual Properties Rights
• Privatisation
• Regional free trade agreements (NAFTA, EU, ASEAN)
• Legal: technological standards
Economical forces
• Increasing individual income
• Global trade
• Global financial markets
• Global competition
History of Globalisation

• Is globalisation a new process?

• Please provide examples of historical globalisation?

• What is different in the current status?

Phases of Globalization
1st Phase: 1830, peaking around 1880
Aided by railroads, ocean transport; resulting in the rise of mass production and
growing trade

2nd Phase: 1900, peaking late 1920s

Fueled by electricity and emergent modern technologies; early MNEs

3rd Phase: 1948, peaking around 1970

End of WW II; Marshall Plan; Gradual reduction of trade barriers, especially under
General Agreement on Tariffs and Trade (GATT)

4th Phase: 1980, peaking around 1997

Fueled by information and communications technologies. Rapid liberalization in
Emerging Markets
Firm Level Consequences of Globalization

• Countless new business opportunities for

internationalizing firms
• New risks and intense rivalry from foreign competitors
• More demanding buyers who source from suppliers
worldwide
• Greater emphasis on proactive internationalization
• Internationalization of firm’s value chain

International Business: Strategy, Management,

and the New Realities
Exercise
• What are social consequences of globalisation?
• Please prepare a presentation detailing positive and negative
consequences? What is the final balance?

Benefits Risks / Negative

Societal Consequences of Market Globalization

• Positive consequences
• More jobs
• Economic development and growing prosperity
• Technology and knowledge transfer

• Negative consequences
• Natural environment
• Disruptive effects in national economies
• Human rights violations abroad (e.g., sweatshops)
• Job losses at home

International Business: Strategy, Management,

and the New Realities
Unintended Consequences of Globalization
• Loss of national sovereignty
• Power shifts to MNEs and larger countries

• Offshoring and the flight of jobs

• Dislocation of jobs

• Effect on the poor

• Benefits of globalization are not evenly distributed

• Effect on the natural environment

• Effect on national culture

• Loss of national cultural values and identity

International Business: Strategy, Management,

and the New Realities
 Examples of How Firms’ Value Chain Activities
Can Be Internationalized
Value Chain: Sequence of value adding activities performed in the course
of developing, producing, marketing, and servicing a product.
Implications for Management

• Global orchestration’ of value-chain activities (e.g.,

in order to cut costs, access resources, target new
markets)

• Exploit knowledge acquired worldwide

• Increase productivity

• Collaborate with foreign partners

International Business: Strategy, Management,

and the New Realities