Professional Documents
Culture Documents
Introduction of International Business Environment
Introduction of International Business Environment
Business Environment
Domestic v/s International Business
Liberalization, Privatization and
Globalization
the world.
Market-Seeking Motives
Marketing opportunities due to life cycles
Uniqueness of product or service
Economic Motives
Profitability
Achieving economies of scale
Spreading R&D costs
Strategic Motives
Growth
Risk spread
Licensing
Franchising
Management contracts
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Thursday, July 6, 2017 Dr. S. Jain
Differences Between Domestic and
International Business
Socio-Cultural Environment
Political & Legal Environment
Economic Environment
Natural Environment
Technological Environment
Competition
Infrastructure
IMPLICATIONS
-in international marketing, consumer behaviour may differ from DB
-in production, HRM may differ from DB
-standard of living/cost/wages may differ,
but note:
NOT ALL FDI GOES TO LOW WAGE COUNTRIES.
-Competent firms are able to take advantage of the above differences by turning
them into expanded new opportunities not available from domestic sources.
Concept of Multinationals
MNCs now account for over 33% of world output, and 66% of world trade
Capitalist Approach
Privatization + Deregulation + Globalization = Turbo-capitalism = Prosperity
Homogeneity
Price, Product, Quality, Interest Rates Etc.
Branding
Brands like Coca Cola, Nike, Sony, LG, Intel, Microsoft etc
Business Freedom
Facilities
Government Support
Resources
Competitiveness
Orientation-