CHAPTER 1
International business terminology
- Foreign business: the operation of a company outside of its home or domestic market
- Multidomestic company: is an organization with affiliates in many countries
+ Each has its own business strategies (operations and decision-making processes
are decentralized to the local level)
+ These strategies are based on perceived differences and specific preferences of
the market
- Global company: centralized management and standardized products or services
across all its markets (offers standardizing processes and uniform products
worldwide)
The rapid growth of international business is a result of FDI and exports
- FDI: a firm invests in another country while retaining significant management control
- Exports
Two sets of forces in IB: Internal (controllable) & External (uncontrollable)
- Internal factors: factors of production (capital, raw materials, people)
activities of the organization (personnel management, finance, marketing)
Globalization: a shift toward a more integrated and interdependent world economy
- 2 components: globalization of markets & globalization of production
- Drivers for greater globalization:
+ decline in trade and investment barriers
+ technological changes
- Impact: + on production: reduce transportation and communication costs, optimize cost
structure (co cau chi phi CPCD/CPBD)
+ on markets: global consumers
(*) Globalization of markets: integrating national market into a single market with a unified taste
(*) Globalization of production: is the sourcing of parts and services from other markets to
reduce cost.
The stages in the value-creation chain of products are increasingly globalized to create the best
quality for the product at the lowest cost
Globalization outcome: globality – nothing happens on our planet is a limited-local event
(*) Globalization forces:
- political: reduce trade and foreign investment barriers by gov
- tech: advances in computers, low cost network computing
CHAPTER 2
Transitional economy:
- Deregulation: + loại bỏ các rào cản pháp lý, tạo điều kiện cho thị trường tự do
+ cho phép việc thành lập và hoạt động của các doanh nghiệp tư nhân
- Privatization: + chuyển giao quyền sở hữu của doanh nghiệp thuộc sở hữu nhà nước
sang tư nhân
- Legal systems: + hệ thống pháp luật hỗ trợ nền kinh tế thị trường
Mục đích của phân tích kinh tế:
- Đánh giá triển vọng của tổng thể nền kinh tế
- Đo lường mức độ ảnh hưởng của những thay đổi có thể xảy ra lên doanh nghiệp
- Foreign market entry makes economics analysis more complex:
+ Foreign environment: consists of many national economies
+ International environment: consists of national economies’ interactions
Dimensions of the economy:
- Gross national income (GNI):
+ measures the income generated by a nation’s citizens from international
and domestic activity
+ preferred over GDP
- GNI/Capita: + compared countries concerning their citizens’ well-being
+ used to assess market or investment potential
Legal systems:
(*) Legal issues in IB:
+ Differences in contract law
+ Property rights and corruption (tham nhung)
+ Protection of intellectual property
+ Product safety and product liability (trach nhiem sp)
CHAPTER 3
Culture
(*) Components of culture:
- Values: ideas/assumptions about what a group of people believes to be good, right and
desirable
- Norms: social rules and guidelines that prescribe (quy dinh) appropriate behaviors in
particular situations
