click to edit master title style bangladesh university of professionals mgt of int’l business need...
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Mgt of Int’l
Business Need to View the Globe
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Global Marketplaces and Business centers
LECTURE - 2
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Mgt of Int’l
Business First Rule – Know the Territory
Victor Cardenas, a Cuban expatriate, Selling Lasagna in Belarus
Ad for energizer Bunny in HungaryBaby care product of USA in Hungary,
model wearing ring in left hand and warmly embracing her baby
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Mgt of Int’l
Business China - Recent
On Thursday, a Chinese official accused Google of spreading obscene content over the Internet. The comments came a day
after Google.com, Gmail and other Google online services abruptly became inaccessible to many users in China.
Google’s annual revenue from China at $200 million to $300 million, or about 1.4 percent of the $21.8 billion in revenue the
company recorded in 2008.
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Vital Information in International Business
Basic geographyMarket
characteristics
Culture Politics
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Mgt of Int’l
BusinessClassifying Countries by Income Levels
High Income
Lower Income
Middle Income
Least Developed
At Least$9206 per capita $745<Income<$9206 pc
$745 or below per capita No literacy, per capita incomes and economic growth
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Mgt of Int’l
Business Income Level & Happiness
It appears, there exists a positive correlation between income level and happiness.
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Mgt of Int’l
Business OECD Countries (High Income)
Organization for Economic Cooperation and Development
30 Market oriented democracies, 23 from western Europe (EU, Czech Rep, Hungary, Iceland, Norway, Poland, Slovak Rep, Switzerland, Turkey), Australia, Japan, New Zealand, South Korea, Honduras, Israel, Singapore, Taiwan)
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Headquarters of World’s Largest Corporations in 2005 by Country
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Mgt of Int’l
Business Business Guru Says
Major corporations must be competitive through the Quad if the wish to keep pace
with the industry rivals
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Mgt of Int’l
Business World Economic ActivityThe Triad
JapanEuropean UnionUnited States
The QuadTriadCanada
909 million residents of the Quad countries produce 73% of the world’s GDP
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Mgt of Int’l
Business % of World GDP (500 Yrs)
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Mgt of Int’l
Business Marketplaces of North America
United StatesCanadaMexico
GreenlandCentral AmericaCaribbean islands
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Mgt of Int’l
Business North America
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an
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Mgt of Int’l
Business United StatesThird largest
population in worldFourth largest land
massLargest economy30 percent of
world’s GDP in 2004
1/7 of world trade in goods and services
Prime market for exports
Invoicing Currency: Currency in which the sales of goods and services is denominated
Flight Capital: Money sent out of a politically or economically unstable country to one perceived as a safe haven
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Mgt of Int’l
Business Canada
Second largest land mass80 percent of population concentrated along
U.S./Canadian borderRich natural resourcesTrade with U.S. - single largest bilateral trade
relationship in world
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Mgt of Int’l
Business Advantages of Canada
Proximity to U.S. marketStability of legal and political systemsExcellent infrastructure and educational
systems
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Mgt of Int’l
Business Mexico
Largest Spanish-speaking nationFederal government systemParticipant in NAFTA along with U.S. and
Canada
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Mgt of Int’l
Business Central America and the Caribbean
Economic development hindered byPolitical instabilityChronic U.S. military intervention Inadequate educational systemsWeak middle classPoverty Import limitations
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Mgt of Int’l
Business Asia
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Business Marketplaces of Asia
JapanAustraliaNew ZealandThe Four Tigers
China
IndiaAfghanistanCentral Asian RepublicsSoutheast Asian
Countries
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Business Japan
Second largest economyGDP of $4.6 trillion in 2004Industries controlled by KeiretsuMITI/ METI plays vital roleGDP growth rate of 1.3 percentFollows Sogo Sosha
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Mgt of Int’l
Business The Four Tigers
South Korea Taiwan
Singapore Hong Kong
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Korea is having slower economic growth, observers believe that, poor lending practice is the cause.
Taiwan facing difficulty with labor wage, investing in China.
Singapore is now unable to compete with Honduras and Indonesia in the production of price-sensitive, labor intensive manufactured goods.
Singapore provides good communication and financial services to the firms in Pacific Asia, well on its way to become regions high technology center.
Hong Kong serves as intermediaries for companies around the world that want to do business with China.
The Four Tigers (Contd..)
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Business China
World’s most populous country (1.2 billion)Communist ideology mixed with market-
oriented economic policiesHeavy FDI Hard-working low cost laborClosing the growing income gap between
urban and rural dwellers.
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Mgt of Int’l
Business India
World’s second most populous countryPer capita GDP of $620 ($460 in 2000)Coca Cola was forced to divulge their secret
soft drink formula.
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Thanks
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Mgt of Int’l
Business Assignment - 2Browse the internet and find the following:
a. What was the total value of X’s imports & exports from/ to Y last year?
b. What was the total value of X’s investments from/ to Y last year?
c. Profile of economy of Y:
GDP, per capita income, its major exports and imports, GDP growth rate, Who are major trading partners.
d. Profile of people of Y:
Average educational level, life expectancy & Population growth
See next for further instructionsNote: X & Y are country name
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Mgt of Int’l
Business Assignment – 3 (Contd..)
Gp Number X Means Y Means
1 USA Belgium
2 UK France
3 China India
4 Japan Bangladesh
5 Australia Mexico
6 Singapore Russia
7 South Korea Japan
8 New Zealand Australia
Browse the net to find the information available in the sites as mentioned in “Building the Global Skills”, pg – 52)
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Present your study in multimedia
(Not exceeding 10 minutes)
Submit in the form of short report
Attach PPT handout with the report
Submission date: 28 Jan 10 by 0930 p.m
Assignment – 3 (Contd..)
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Mgt of Int’l
Business Reading Assignment
Point – Counterpoint
Helping Developing Nations: Aid or Trade