INTERNATIONAL BUSINESS

Lecturer contacts
❖ MA. Le Thi Thanh Ngan
❖ Email: lethithanhngan.cs2@ftu.edu.vn

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 Textbook and readings
1. International business: A Global Perspective (Marios. I.K)
2. International business: Competing in Global Market
(Charles. Hill)
3. International Human Resource Management: A Multinational
Company Perspective (Monir.H.T)
4. Daniels: international Business
5. Business across culture: Fons Trompenaaas
6. Giáo trình kinh doanh quốc tế: PGS.TS. Nguyễn Thị Hường –
Đại học kinh tế quốc dân
7. Giáo trình kinh doanh quốc tế: TS. Phạm Thị Hồng yến
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 Learning requirements
❖ Before class you have to:
• Answer all the review questions which teacher mentioned in the
previous chapter

• Complete the activity and case studies

❖ In class:

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 Grading
Attendance: 10%
Mid-term assignment: 30%
Final exam: 60%
Note:
- You have to meet two following requirements:
- Attendance not less than 75%
- Mid – term test might be over 4
- 25 minutes late equal to absence

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 CONTENTS
▪ Chapter 1: Globalization
▪ Chapter 2: National Differences in political situation
▪ Chapter 3: National Differences in Economics environment
▪ Chapter 4: National Differences in Culture environment
▪ Chapter 5: Country Evaluation and Market Selection
▪ Chapter 6: International Business Strategies
▪ Chapter 7: The organizational structure
▪ Chapter 8: Modes of Entries

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 Chapter 1

International Business

Globalization

Le Thi Thanh Ngan

Ha Noi, Foreign Trade University

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 Go … Global
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 What is
Globalization ?

Integration

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 Globalization refers to the shift toward a more
integrated and interdependent world economy
common market (ex: country no alone, depends or relies on the other
standardized products effect on other countries (Charles. W. Hill)
over the world...) Ex: China vs USA trade war --> effects on VNese and other countries' markets
USA higher tax to Chinese goods --> Chinese goods in USA is expensive --> opportunity for VNese goods
--> China exports to VN --> competition btw VNese and Chinese goods
--> VN received the cargo from China and export to US --> affect on the
relationship btw VN and US

Ex: Ukraine war affects on VN (Group 1 =))))

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 1.Globalization of Markets

…refers to the merging of historically distinct

and separate national markets into one huge
global marketplace

tariff or non-tariff
- Falling trade barriers 🡪 easier to sell
internationally

- The tastes and preferences of consumers are

Ex: same preferences of
converging on some global norms movies, music...
McDonald, KFC, Coca -->
global norms
- Same basic products worldwide
Ex: social media, electronic devices...
- “German market” or the “American market”,
only the global market

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 2.Globalization of
Production
…refers to the 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 like land, labor, and capital

- Companies compete more effectively by

lowering their overall cost structure or
improving the quality or functionality of their
product offering
low cost --> cheaper input from other countries
Ex: brands: Nike, Puma produce their products in Asian countries for lower labor cost

Ex: Formosa in Ha Tinh --> location economy in VN (Group 2)

smart currency will find a place with a higher rate of return

--> flow of investments (lich su kinh te --> xu huong tuong lai)

FDI: Europe --> USA --> Japan, Korea --> China --> Vietnam, Thailand, Indonesia,
Bangladesh --> Cambodia, Myanmar, Ethiopia

Why FDI in China decreases? --> labor cost becomes higher (GDP per capita is 12000$ a year)
--> China less attractive

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 Why Do We Need
Global Institutions?
• Global institutions
– manage, regulate, and police the global marketplace
– promote the establishment of multinational treaties to
govern the global business system
• General Agreement on Tariffs and Trade (GATT)
• World Trade Organization (WTO)
• International Monetary Fund (IMF)
• World Bank
• United Nations (UN)
• G20

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 Drivers of Globalization
- The decline in barriers 🡪 free flow of goods, services, and capital. (GATT, WTO)

Ex: E-commerce platform

- The technological changes (productions, telecom, transportation..)
Ex: Airbnb, GG Map, Grab, Gojek...

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 Activity
In your point of view, you choose anti or
support the globalization. Explain.

NHỚ TÌM ĐỌC

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 Support…
- New production and
business opportunities
for both countries
- New markets, new
production sources
- Lower prices for goods
and services.
- Greater economic growth
- Higher consumer income,
and more jobs in developing countries

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 … Anti
- Firms collapse, job losses in home country
- Wealth - Poverty gap
- Child, women labor
- Environmental degradation
- The cultural imperialism of
global media and MNEs
- Financial crisis
chu quyen
- Country sovereignty
what are the reasons for Disney Company to choose their 1st, 2nd and 3rd theme
park out of USA? Can you recommend the next location for Disney in the future?

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