1. IB phù hợp với doanh nghiệp vừa và nhỏ hay các doanh 1.
nh 1. Mối quan hệ giữa văn hoá với chi phí kinh doanh (slide 39 chap 03)
nghiệp lớn (slide 46 chap 01)
"The study of international business is fine if you are going to work in a
large multinational enterprise, but it has no relevance for individuals who
are going to work in smaller firms." Evaluate this statement.
Answer: People who believe in this view, and the firms that they work for,
may find that they do not achieve their full potential (at best) and may
ultimately fail because of their myopia. As barriers to trade decrease and state
of the art technological developments take place throughout the world, new
opportunities and threats exist on a worldwide basis. The rise of the mini-
multinationals suggests there are global opportunities even for small firms.
But staying attuned to international markets is not only important from the
perspective of seeking profitable opportunities for small firms; it can also be
critical for long-term competitive survival. Firms from other countries may
be developing products that, if sold internationally, may wipe out small
domestic competitors. Scanning international markets for the best suppliers is
also important for small firms, for if a domestic competitor is able to tap into
a superior supplier from a foreign country, it may be able to seriously erode a
small firm's competitive position before the small firm understands the source
of its competitor's competitive advantage and can take appropriate counter
actions
1. Toàn cầu hoá và chăm sóc sức khoẻ (chap 1)
Read the Country Focus “Outsourcing American Healthcare,” then answer
the following questions:
a) A decade ago the idea that medical procedures might move offshore was
unthinkable. Today it is a reality. What trends have facilitated this
process?
b) Is the globalization of health care good or bad for patients?
c) Is the globalization of health care good or bad for the American
economy?
d) Who might benefit from the globalization of health care? Who might
lose?
e) Do you think that the U.S. government should restrict the outsourcing of
medical work to developing nations? What if physicians in those countries
are certified by U.S. medical institutions?
Answer:
a) Advances in technology are a primary key to making the outsourcing of
medical work possible in recent years. In particular, the Internet makes it
possible to quickly transmit large amounts of data to countries such as India
where the information can be processed and returned. In addition, the high
cost of medical care in countries like the U.S. is prompting people to consider
cheaper alternatives. The cost to repair a leaky heart valve in India is about
$10,000 including airfare, while in the U.S. the same surgery could cost
$60,000.
b) This is a difficult question. Some students might argue that the outsourcing
of medical procedures to nations where salaries of medical professional are
lower clearly benefits consumers. However, other students might suggest that
the level of care in countries such as India may not be up to the standards
found in the United States, and that the process takes some control out of the
hands of the consumers. Certainly, health care professionals in the United
States see the outsourcing trend in a negative light, however, medical
insurance companies view any means of cutting costs as a positive move.
c) When considered from a strictly economic perspective, the globalization of
health care should result in a more efficient industry. Prices in the U.S.
should fall as countries like India offer their services as an alternative to
higher-priced American ones. It would follow then, that Americans should
have more disposable income which could then be spent in other part of the
economy.
d) Most students will probably agree that the current trend to outsource
medical procedures is just the beginning. The rising cost of health care is
likely to continue to put pressure on the industry to find cheaper alternatives
to handling not only direct patient care, but also the paperwork involved.
Most students will probably agree that outsourcing to cut costs in the
paperwork end of the process makes sense, but may draw the line at the
outsourcing of medical procedures. Others however, might point out that the
care being offered by some hospitals in countries like India is on par with
American hospitals, indeed many of the doctors are American trained.
e) The answer to this question may depend on the nationality of the student.
Students from countries that have national health care may already feel that
“Outline why the culture of a country might influence the costs of doing business
in that country. Illustrate your answer with examples.”
Answer: Since in a sense the entire chapter is about this question, there can be
numerous reasons and examples of how culture influences the costs of doing
business. Several are highlighted in the following sentences, but there could be
numerous others. When there are simply different norms between how individuals
from different countries interact, the costs of doing business rise as people grapple
with unfamiliar ways of doing business. For example, while in the US we may get
down to business first, and then get to know each other socially later, in many South
American countries it is important develop a good social relationship before trying
to discuss business issues. Different class structures and social mobility also raise
the costs of doing business, If there are inhibitions against working with people from
different classes, then the efficiency with which information can flow may be limited
and the cost of running a business increased. A country's religion can also affect the
costs of business, as religious values can affect attitudes towards work,
entrepreneurship, honesty, fairness, and social responsibility. In Hindu societies
where the pursuit of material well-being can be viewed as making spiritual well-
being less likely, worker productivity may be lower than in nations with other
religious beliefs. Finally, a country's education system can have important
implications for the costs of business. In countries where workers receive excellent
training and are highly literate, the need for specific worker training programs are
decreased and the hiring of additional employees is facilitated.
2. Các bước của xuất khẩu (slide 11,12 chap 13)
What steps should exporters take to increase their chances of success?
Or
What are the guidelines that can help a novice exporter to increase the probability
of exporting successfully?
(1) Hire an EMC or at least an experienced export consultant to help identify
opportunities and navigate through the web of paperwork and regulations
so often involved in exporting.
(2) Initially focus on one market or a handful of markets.
(3) Enter a foreign market on a small scale to reduce the costs of any
subsequent failure.
(4) Recognize the time and managerial commitment involved in building
export sales and hire additional personnel to oversee this activity.
(5) Devote a lot of attention to building strong and enduring relationships
with local distributors and/or customers.
(6) Hire local personnel to help the firm establish itself in a foreign market.
(7) Be proactive about seeking export opportunities.
(8) Keep the option of local production in mind.
3. Hai áp lực (Local Responsiveness và Cost Pressure) (chap 11)
Firms that compete in the global marketplace typically face two types of competitive
pressures
- pressures for cost reductions
- pressures to be locally responsive
These pressures place conflicting demands on the firm
*Pressures for cost reductions are greatest
- in industries producing commodity type products that fill universal needs
(needs that exist when the tastes and preferences of consumers in
different nations are similar if not identical)
- when major competitors are based in low cost locations
- where there is persistent excess capacity
- where consumers are powerful and face low switching costs
To respond to these pressures, firms need to lower the costs of value creation
*Pressures for local responsiveness arise from
- differences in consumer tastes and preferences
- differences in traditional practices and infrastructure
- differences in distribution channels
- host government demands
Firms facing these pressures need to differentiate their products and marketing
strategy in each country
1. Differences in Consumer Tastes and Preferences
When consumer tastes and preferences differ significantly between countries, firms
face strong pressures for local responsiveness
2. Differences in Infrastructure and Traditional Practices
When there are differences in infrastructure and/or traditional practices between
countries, pressures for local responsiveness emerge
3. Differences in Distribution Channels
A firm’s marketing strategies may be influenced by differences in distribution
channels between countries
4. Host Government Demands
Economic and political demands imposed by host country governments may
since the government already controls the medical industry, issues related to necessitate a degree of local responsiveness
the outsourcing of medical work is out of their hands. Students from
countries with private health care such as the United States may believe that
the government has a certain responsibility to protect its citizens, and that the
issue of outsourcing of medical procedures may fall into this realm of
protection. In either case, it would appear that restrictions to limit the practice
would almost certainly raise costs further.
1. Các chiến lược được hình thành từ 2 áp lực (lưu ý: 4 chiến
lược) (chap 11)
Các chiến lược được hình thành từ 2 áp lực
global standardization
localization
transnational
international
*Question: When does a global standardization strategy make sense?
A global standardization strategy focuses on increasing profitability and profit
growth by reaping the cost reductions that come from economies of scale,
learning effects, and location economies
The strategic goal is to pursue a low-cost strategy on a global scale
This strategy makes sense when there are strong pressures for cost reductions
and demands for local responsiveness are minimal
*Question: When does a localization strategy make sense?
A localization strategy focuses on increasing profitability by customizing the
firm’s goods or services so that they provide a good match to tastes and
preferences in different national markets
This strategy makes sense when there are substantial differences across
nations with regard to consumer tastes and preferences, and where cost
pressures are not too intense
*Question: When does a transnational strategy make sense?
A transnational strategy tries to simultaneously
- achieve low costs through location economies, economies of scale, and
learning effects
- differentiate the product offering across geographic markets to account for
local differences
- foster a multidirectional flow of skills between different subsidiaries
This strategy makes sense when there are both high cost pressures and high
pressures for local responsiveness
*Question: When does an international strategy make sense?
An international strategy involves taking products first produced for the
domestic market and then selling them internationally with only minimal local
customization
This strategy makes sense when there are low cost pressures and low
pressures for local responsiveness
*Question: Is the choice of strategy static?
As competition increases, international and localization strategies become less
viable
To survive, firms may need to shift to a global standardization strategy or a
transnational strategy in advance of competitors

2. Lợi thế và bất lợi thế của các phương thức gia nhập thị trường
(Market Entry Modes: Adv and Disadv.) (chap 12)
1. Exporting
Exporting involves manufacturing goods and service in a central location and shipping it to foreign market for sale. Exporting is often the first method firms use to
enter foreign market.

Exporting is attractive because: Exporting is not attractive when

- it avoids the often significant costs of establishing - lower-cost manufacturing locations exist
manufacturing operations - transport costs are high
- firms may achieve experience curve and location - tariff barriers are high
economies - foreign agents fail to in the exporter’s best interest

2. Turnkey projects
Turnkey projects involve a contractor from one country that agrees to handle every detail of the project for a foreign client, from the design, construction, and start-
up of a facility to the training of operating personnel, and then hands the foreign client the key to a facility that is ready for full operation.

Turnkey projects are attractive because Turnkey projects are not attractive when
- They allow firms to earn great economic returns from the - The firm's process technology is a source of competitive advantage
know-how required to assemble and run a technologically
complex process
- They are less risky in countries where the political and
economic environment is such that a longer-term
investment might expose the firm to unacceptable political
and/or economic risk
 3. Licensing
Licensing is an arrangement in which a licensor grants the rights to intangible property (such as patents, inventions, formulas, processes, designs, copyrights, and
trademarks ) to a licensee for a specified time period, and in return, the licensor receives a royalty fee from the licensee

Licensing is attractive when Licensing is unattractive when

- The firm does not have to bear the development costs and
risks associated with opening a foreign market
- The firm avoids barriers to investment
- It allows a firm with intangible property that might have
business applications, but which doesn’t want to develop
those applications itself, to capitalize on market
opportunities
- The firm doesn’t have the tight control over manufacturing, marketing, and
strategy necessary to realize experience curve and location economies
- The firm’s ability to coordinate strategic moves across countries by using
profits earned in one country to support competitive attacks in another is
compromised

4. Franchising
Franchising is a specialized form of licensing in which the franchiser not only sells intangible property (normally processes and trademarks) to a franchisee, but it
also insists that the franchisee agree to abide by strict rules as to how it does business.

Franchising is attractive because Franchising is unattractive because

- Firms avoid many costs and risks of opening up a foreign - It may inhibit the firm's ability to take profits out of one country to support
market competitive attacks in another
- The geographic distance of the firm from its foreign franchisees can make
poor quality difficult for the franchisor to detect

5. Joint Ventures
Joint ventures involve the establishment of a firm that is jointly owned by two or more otherwise independent firms.

Joint ventures are attractive because Joint ventures can be unattractive because
- A firm can benefit from a local partner's knowledge of the - The firm risks giving control of its technology to its partner
host country's competitive conditions, culture, language, - The firm may not have the tight control over subsidiaries that it might need to
political systems, and business systems realize experience curve or location economies
- The costs and risks of opening a foreign market are shared - Shared ownership can lead to conflicts and battles for control if goals and
with the partner objectives differ or change over time
- They can help firms avoid the risk of nationalization or
other adverse government interference
6. Wholly Owned Subsidiary
It is a subsidiary in which the firm owns 100 percent of the stock.
Establishing a wholly owned subsidiary in a foreign market can be done two ways. The firm either can set up a new operation in that country, often referred to as a
greenfield venture, or it can acquire an established firm in that host nation and use that firm to promote its products.

Wholly owned subsidiaries are attractive because Wholly owned subsidiaries are unattractive because firms bear the full costs and risks of
- They reduce the risk of losing control over core setting up overseas operations
competencies
- They gives the firm the tight control over operations in
different countries that is necessary for engaging in global
strategic coordination
They may be required if a firm is trying to realize location
and experience curve economies