Paper on International Business Management

In: Business and Management

Submitted By madu04
Words 3731
Pages 15
(1)INTRODUCTION

When doing business in an international scale, it is important to understand what international business really means. Therefore according to Rugman & Collinson (2012) international business can be defined as “The study of transactions taking place across national borders for the purpose of satisfying the needs of individuals and organizations. Some of the well known International businesses (MNE’s) are Wal-Mart, Toyota Motors, General Motors and Volkswagen for their performance, moreover annual revenue.
Decisions with regard to movement in to global arena should be taken with care as there is certain degree of risk involved.
 There should be value in moving to different markets (eg- An organization may lack the skills needed to make use of the potential-Integrate R&D activities or incompatible cultures
 The cost of managing complex infrastructure should not –outweigh the benefits of increased scale
 Some industries posses’ particular globalization challenges for example companies operating in the manufacturing sector (automobile makers) often faces complexities in integration and particularly vulnerable to economic slowdowns which reduces their ability to expand. (Alexander & Korine, 2008)

According to Wall & Rees (2004) the factors to be considered when investing abroad can be classified in to four areas-Supply factors, demand factors, Political factors and others.
Under supply factors, production costs, Distribution costs and access to key technologies are key considerations. When it comes to production costs foreign locations may be more attractive due to lower costs of skilled or unskilled labor, lower land prices, and tax rates. Furthermore some locations are popular as low cot centers of production.
A major factor in distribution is the transportation cost and therefore when moving global the distribution centers will have to…...

Similar Documents

International Business Management

...behind the USA and Japan on most measures of international competitiveness. Gross domestic product per capita, sometimes used as an indicator of international competitiveness at the country level, was 33 per cent lower in the EU as a whole than in the USA and 13 per cent lower than in Japan. The EU’s poor record in creating employment was singled out for particular criticism. As this appeared to apply across the board in most industrial sectors, it suggested that the EU’s poor performance related to the business environment in general and, in particular, to the inflexibility of Europe’s labour markets for goods and services. A shortage of risk capital for advanced technological development and high cost and inefficiency of Europe’s financial services were also highlighted by the report. For one reason or another, European industries generally lag behind in technology industries. If measured by the number of inventions patented in at least two countries, the USA is well ahead of most European countries, as well as Japan. Despite these shortcomings, the report’s authors focus attention on flexible markets, market liberalisation, and the creation of a competitive business environment rather than on targeted intervention by the EU or national authorities Questions: 1. Is gross domestic product per capita a useful indicator of International competitiveness in the EU? 2. Is it fair to point the blame for the EU’s poor international competitiveness at inflexible......

Words: 852 - Pages: 4

International Business Management

...Examination Paper: International Business Management IIBM Institute of Business Management Examination Paper International Business Management Section A: Objective Type (30 marks) • • • This section consists of multiple choice questions and short answer type questions. Answer all the questions. Part One carries 1 mark each and Part Two question carries 5 marks each. MM.100 Part One: Multiple choices: 1. What is the series consideration for strategy implementation? a. Strategic orientation b. Location c. Dimensions d. Both (a) & (b) 2. The major activity in global marketing is: a. Pricing policies b. Product lines c. Market assessment d. All of the above 3. The third ‘P’ in the international marketing mix is: a. Product b. Price c. Promotion d. Place 4. The European Economic Community was established in: a. 1958 b. 1975 c. 1967 d. 1957 5. Environment Protection Act: a. 1986 b. 1967 c. 1990 d. None of the above 6. People’s attitude toward time depend on: a. Language b. Relationship c. Culture 1 IIBM Institute of Business Management Examination Paper: International Business Management d. All of the above 7. Culture necessitates adaption of : a. Product b. Price c. Promotion d. Place 8. The legal term for brand is: a. Symbol b. Name c. Trade mark d. All of the above 9. FDI flows are often a reflection of rivalry among firms in: a. Global market b. Indian market c. International market d. None of the above 10. ISO certification is: a. Expensive process b. Elaborate......

Words: 4960 - Pages: 20

International Business Research Paper

...has been around. This paper will evaluate all aspects of Caterpillar’s organization. The paper will explain the culture of Caterpillar’s organization (values and norms), their ethics in international dealings, foreign direct investment, entry into markets, accounting practices, how they convert currency, their international strategy, their strategic positioning, and their marketing tactics. After reviewing all areas of Caterpillar’s organization the reader will be able to understand why Caterpillar is the global leader in their industry. History of Caterpillar Caterpillar has been established for over 85 years and continues to grow strong. Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The company is also a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services and Progress Rail Services. Caterpillar’s has made progress in creating change for the better all over the world. Caterpillar began under the name of Holt Manufacturing Company and started out in San Francisco California (Caterpillar Inc, 2013). In 1925 Holt Manufacturing merged to form Caterpillar Tractor Co. Over the years Caterpillar continued to develop tractors along with motor graders, blade graders, elevating graders, terracers, and electrical generating sets. In 1950 Caterpillar established its business overseas in Great......

Words: 2346 - Pages: 10

International Journal of Business and Management

...Vol. 3, No. 7 International Journal of Business and Management A Study on the Trans-Culture Management of International Hotel in China Chunwei Li Hotel Management, TUC-FIU Cooperative School, Tianjin University of Commerce Tianjin 300134, China E-mail: chunweifiu@yahoo.com Abstract Along with the integration process of global economy, cultural conflicts gains more and more attentions. After China’s entry to WTO, China economy is involved in world economy further. More and more international companies enter China. However, they encounter with an overall cultural impact. Trans-culture conflicts have already become a problem for international groups. Teams with different cultural beliefs challenge the effectiveness of traditional management theories. Differences between Chinese culture and western culture affect international groups’ management significantly. Trans-culture management gains attentions from international groups more and more. Therefore, it is meaningful to research this issue. This paper selects the international hotel industry in China as a subject to study the trans-culture conflict phenomenon with the hope of achieving effective trans-culture management. Keywords: International hotel group, Trans-culture management 1. Analyze the effect of culture from different levels of international hotel group 1.1 Founders Many companies have their “heroes”. Wilkins defines these people as “living or passing, real or virtual men who are models of behaviors in......

Words: 2739 - Pages: 11

International Business Management

...Examination Paper: International Business Management IIBM Institute of Business Management Examination Paper International Business Management Section A: Objective Type (30 marks) • • • This section consists of multiple choice questions and short answer type questions. Answer all the questions. Part One carries 1 mark each and Part Two question carries 5 marks each. MM.100 Part One: Multiple choices: 1. What is the series consideration for strategy implementation? a. Strategic orientation b. Location c. Dimensions d. Both (a) & (b) 2. The major activity in global marketing is: a. Pricing policies b. Product lines c. Market assessment d. All of the above 3. The third ‘P’ in the international marketing mix is: a. Product b. Price c. Promotion d. Place 4. The European Economic Community was established in: a. 1958 b. 1975 c. 1967 d. 1957 5. Environment Protection Act: a. 1986 b. 1967 c. 1990 d. None of the above 6. People’s attitude toward time depend on: a. Language b. Relationship c. Culture 1 IIBM Institute of Business Management Examination Paper: International Business Management d. All of the above 7. Culture necessitates adaption of : a. Product b. Price c. Promotion d. Place 8. The legal term for brand is: a. Symbol b. Name c. Trade mark d. All of the above 9. FDI flows are often a reflection of rivalry among firms in: a. Global market b. Indian market c. International market d. None of the above 10. ISO certification is: a. Expensive process b. Elaborate......

Words: 4960 - Pages: 20

International Business Management

...INTERNATIONAL BUSINESS MANAGEMEMENT ASSIGNMENT 2 Question 1 When the Mexico’s currency is pegged to the United States dollar, it means that the exchange rate is set and artificially maintained by the government. The rate will not fluctuate from day to day. The pegged exchange rate is usually used to stabilize the value of a currency against the currency it is pegged to which makes trade and investments between the two currency areas easier and more predictable. Pegged exchange rate system can also be used as a means to control inflation. The difference between a free/clean float, a managed float and fixed exchange rate systems of exchange rate is that: Clean/free float In the clean/free float also known as a pure exchange rate the value of a currency, which is the exchange rate is determined purely by market forces of supply and demand. Clean floats can only exist where there is no government interference, as would be the case in a purely capitalistic economy. Therefore, clean floats are a result of Laissez-Faire or free market economies.  Managed float In a managed float also known as “dirty float” the government or the country's central bank occasionally intervenes to change the direction of the value of the country's currency. In most instances, the intervention aspect of a dirty float system is meant to act as a buffer against an external economic shock before its effects become truly disruptive to the domestic economy. Therefore, with a managed or dirty float the......

Words: 3046 - Pages: 13

Liberia International Business Paper

...main governmental programs, Bureau of Maritime Affairs (BMA) and the Liberian International Ship and Corporate Registry (LISCR), and it is because of these two programs that it is ranked number one for safety, customer service, and quality. The main efforts of the program are driven by developing avenues for strategic partnerships and infrastructural development and growth for the Liberian government. The mission statement for this company further states, “We pride ourselves on assuring Safety, the Welfare of Seafarers, the protection of the Marine Environment, and the preservation of quality service to our clients.” This paper is going to give a detailed description with evidence to show exactly why the Liberian Maritime Program is one of the world leaders in off shoring. 2. Evidences: 3.1. Safety/Quality: The Liberian Administration goes to great lengths to ensure that safety in all aspects is carefully being implemented to the crew, goods, etc. by working closely with its clients. Some of the effective procedures to ensure safety that the security department implements are: issuance of certifications, approval of ship security plans, verification of the security plan implementation, setting and communicating security levels to Liberian ships, and development of Liberian requirements for International Ship and Port Security (ISPS) compliance. Accidents are inevitable when conducting business like this, but when maritime accidents happen through the Liberian......

Words: 1141 - Pages: 5

International Business Management

...in the international marketing mix is: a. Product b. Price c. Promotion d. Place 4. The European Economic Community was established in____________ a. 1958 b. 1975 c. 1967 d. 1957 5. Environment Protection Act on______________ a. 1986 b. 1967 c. 1990 d. None of the above 6. People‟s attitude toward time depend on: a. Language b. Relationship c. Culture IIBM Institute of Business Management Examination Paper of International Business Management d. All of the above 7. Culture necessitates adaption of : a. Product b. Price c. Promotion d. Place 8. The legal term for brand is: a. Symbol b. Name c. Trade mark d. All of the above 9. FDI flows are often a reflection of rivalry among firms in____________ a. Global market b. Indian market c. International market d. None of the above 10. ISO certification is: a. Expensive process b. Elaborate process c. Evaluative Process d. Both (a) & (b) Part Two: 1. What do understand by „Inward-oriented Policies‟? 2. What is „Factor Endowments Theory‟? 3. Explain the term „Totalitarianism‟. 4. Write about „Persistent Dumping‟.  This section consists of Caselets.  Answer all the questions.  Each caselet carries 20 marks.  Detailed information should form the part of your answer (Word limit 200 to 250 words). Caselet 1 IIBM Institute of Business Management Examination Paper of......

Words: 1261 - Pages: 6

International Business Management

...The third „P‟ in the international marketing mix is: a. Product b. Price c. Promotion d. Place 4. The European Economic Community was established in____________ a. 1958 b. 1975 c. 1967 d. 1957 5. Environment Protection Act on______________ a. 1986 b. 1967 c. 1990 d. None of the above 6. People‟s attitude toward time depend on: a. Language b. Relationship c. Culture Examination Paper of International Business Management 2 IIBM Institute of Business Management d. All of the above 7. Culture necessitates adaption of : a. Product b. Price c. Promotion d. Place 8. The legal term for brand is: a. Symbol b. Name c. Trade mark d. All of the above 9. FDI flows are often a reflection of rivalry among firms in____________ a. Global market b. Indian market c. International market d. None of the above 10. ISO certification is: a. Expensive process b. Elaborate process c. Evaluative Process d. Both (a) & (b) Part Two: 1. What do understand by „Inward-oriented Policies‟? 2. What is „Factor Endowments Theory‟? 3. Explain the term „Totalitarianism‟. 4. Write about „Persistent Dumping‟. END OF SECTION A Section B: Caselets (40 marks)  This section consists of Caselets.  Answer all the questions.  Each caselet carries 20 marks.  Detailed information should form the part of your answer (Word limit 200 to 250 words). Caselet 1 Examination Paper of International Business Management 3 IIBM Institute of Business Management THE EU’S......

Words: 1275 - Pages: 6

International Business Research Paper

...Abstract This research looks into the reasons that lead us to believe that international trade positively and negatively affects our economy. It gives examples of how global businesses use international trade to help them provide better services. It also provides the reader with an understanding of how international trade can increase capita per household. The paper also defines the argument that people not in favor of international trade frequently have. INTERNATIONAL TRADE’S POSITIVE AND NEGATIVE EFFECTS ON THE UNITED STATES ECONOMY Many have questioned over the years if international trade was truly helping the United States domestic economy or destroying it. Trade certainly has its way of bringing countries together and in the process it also provides an easier mean for companies to get the supplies that they need. However, it also tends to outsource jobs to other countries which take away from our country’s economy in a way. I am going to discuss the positive effects of international trade that help develop our country, and the negative effects of trade that give our country a disadvantage, the arguments between both sides, and then I am going to decide in my opinion whether international trade is advantageous for our economy or disadvantageous. Before discussing the effects on International trade is important to visit the background of why countries need to trade in the first place. Domestically countries cannot produce every item that they may need all by......

Words: 1422 - Pages: 6

International Business Paper

...BUSA 3000 The Turks and Caico Islands: More Than a Getaway Offshoring can be defined as the practice of moving employees or certain business activities to foreign countries as a way to lower costs and avoid taxes. In most recent years, offshoring has become extremely popular worldwide. Arguably one of the most dominate places for offshoring, Turks and Caicos has made offshoring one of its key sources of income. Turks and Caicos is not only one of the most beneficial places for businesses to offshore, but is also a leading contender in offshoring when compared to prominent countries. The Turks and Caicos Islands offer far more than sunshine, an easygoing lifestyle, and friendly residents. In recent years, these Caribbean islands have definitely established a reputation in the world for offshoring. For some time now, I have heard how magnificent this island was, but never had thought to look more in detail about it. As a British Overseas Territory, the Turks and Caicos Islands comprise an archipelago of eight main islands in two groups. Turks is to the east, Caicos is to the west, and has number of smaller cays as its surrounding neighbors (International Business).  The foundation of Turks and Caicos’ economy are tourism, the offshore industry and the fishing industry (International Business). The Government encourages tourism because it pulls in more than 1,000,000 visitors a year. One can only imagine the amount of revenue gained from tourist alone. If tourists......

Words: 1459 - Pages: 6

International Business Management

...8 Vertical Collaboration in the Supply Chain Sanda Renko Faculty of Economics & Business University of Zagreb Croatia 1. Introduction Supply chain is a research area which has attracted the attention of many researchers for more than 20 years (Mehrjerdi, 2009) due to costs and time involved in managing materials, information and financial flows from the point of origin to the point of consumption. The simplest definition of the supply chain suggests (Waters, 2003) that it consists of series of activities and companies that move materials through on their journey from initial suppliers to final customers. On that journey each company somehow is adding value to the product. However, due to an increasing competition on the market and due to more demanding and more sophisticated customers, the picture of supply chain is getting more complicated. If we take into consideration that many companies have crossed their borders and have included some geographically separate operations into their supply chain, it is very difficult to successfully integrate and to manage all related activities. In the praxis, it is normally that every company is working for its own benefit resulting in duplicating effort and reducing productivity, lowering efficiency, higher costs and decreasing the level of customer services. However, environmental uncertainty expressed through shortening product life cycle, expanding product proliferation, and more demanding customers requires......

Words: 7210 - Pages: 29

Ibm International Business Management

...Course Study Guide 2011–12 International Business Management BUSI 1493 [pic] Contents 1. Welcome 3 2. Introduction to the Course 4 2.1 Aims 4 2.2 Learning Outcomes 4 2.2.1 Knowledge and understanding of: 4 2.2.2 Intellectual Skills: 4 2.2.3 Subject practical skills: 5 2.2.4 Transferable skills: 5 2.3 Learning and teaching activities 5 3. Contact Details 5 4. Course Content 6 4.1 Session Reading 20 5. Assessment Details 21 5.1 Summary of assessment 21 5.2 Detailed description of assessment 21 6. Other Details 23 1. Welcome Welcome to the exciting world of International Business Management! In this era of globalization, there are very few companies that can say that they are not part of a global network. Every firm has to think of itself as a global company, if for no other reason than because it has to meet competition from global companies. This changes the entire strategy of the firm. In the future, we expect that all of you will be involved in managerial decision making that will take you beyond the realms of your geographical territory. This course on International Business Management will have the focus on helping you make better international decisions. Aside from the opportunities offered by globalisation, there are also many risks in entering into the global market. This course will attempt to address, in a structured format, the ways and possibilities of......

Words: 2809 - Pages: 12

International Business Management

...International Business Management Set up and operate a Business in Foreign Country Abstract This paper deals with the international business. It emphasizes on the means to start the business and the cost associated with the initiation of the business. It also describes the most important aspect of managing human resource. Because of the competitive environment, the need to do the business internationally has increased. This paper provides the overview of the two countries i.e. china and South Africa. Broad description of the legal processes that were supposed to be followed by the company to initiate business in the China has been explained. Apart from this, the staffing of local and expatriate staff along with the labor organization and legislation of the foreign country has been described. Therefore, the paper provides detailed analysis of the conditions that should be kept in mind while establishing business in the foreign country. Introduction International business is a term, which is used collectively to describe issues relating to the firm’s operations with interests in numerous countries. These firms are sometimes referred as multinational corporations. The main area of concern in the international business is the cultural considerations. These considerations include dissimilarity in law and legal systems, living standards, language barriers, climate and many more (Cherunilam, 2005). All these issues need to be overcome for an MNC in order to obtain success in...

Words: 5690 - Pages: 23

Answer International Business Management

...with different degrees of emphasis at one time or another 2. What is ‘Factor Endowments Theory’? Ans. The factor endowment theory was developed by Swedish economist Eli Heckscher and his student Bertil Ohlin. This theory consists of two important theorems, namely, the Heckscher-Ohlin theorem and the factor price equalization theorem. TheHeckscher-Ohlin theorem examines the reasons for comparative cost differences in production and states that a country has comparative advantage in the production of that commodity which uses more intensively the country’s more abundant factor. The factor price equalization theorem examines the effect or international trade on factor prices and states that free international trade equalizes factor prices between countries, relatively and absolutely, and thus serves as a substitute for international factor mobility. 3. Explain the term ‘Totalitarianism’? Ans. In totalitarianism, also called authoritarianism, individual freedom is completely subordinated to the power of the authority of state and concentrated in the hands of one person or in a small group, which is not constitutionally accountable to the people. Societies ruled by a pressure clique- political, economic or military or by a dictator, plus most oligarchies and monarchies-belong to this category. The doctrines of fascism and erstwhile communism are example of Totalitarianism. During the first and second world wars the authoritarian governments began to appear in most...

Words: 1759 - Pages: 8