I. Introduction 1. Topic: International business 1.1. What is international business?

According to Wikipedia, International business is a term used to collectively describe all commercial transactions that take place between two or more regions, countries and nations beyond their political boundary. (Another way of definition: International Business conducts business transactions all over the world. These transactions include the transfer of goods, services, technology, managerial knowledge, and capital to other countries. International business involves exports and imports. 1.2. Features of international business The nature and characteristics or features of international business are:

1.2.1. Large scale operations: In international business, all the operations are conducted on a very huge scale. Production and marketing activities are conducted on a large scale. It first sells its goods in the local market. Then the surplus goods are exported. 1.2.2. Integration of economies: International business integrates (combines) the economies of many countries. This is because it uses finance from one country, labor from another country, and infrastructure from another country. It designs the product in one country, produces its parts in many different countries and assembles the product in another

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country. It sells the product in many countries, i.e. in the international market. Dominated by developed countries and MNCs: International business is dominated by developed countries and their multinational corporations (MNCs). At present, MNCs from USA, Europe and Japan dominate (fully control) foreign trade. This is because they have large financial and other resources. They also have the best technology and research and development (R & D). They have highly skilled employees and managers because they give very high salaries and other benefits. Therefore, they produce good quality goods and services at low prices. This helps them to capture and dominate the world market. Benefits to participating countries: International business gives benefits to all participating countries. However, the developed (rich) countries get the maximum benefits. The developing (poor) countries also get benefits. They get foreign capital and technology. They get rapid industrial development. They get more employment opportunities. All this results in economic development of the developing countries. Therefore, developing countries open up their economies through liberal economic policies. Keen competition: International business has to face keen (too much) competition in the world market. The competition is between unequal partners i.e. developed and developing countries. In this keen competition, developed countries and their MNCs are in a favorable position because they produce superior quality goods and services at very low prices. Developed countries also have many contacts in the world market. So, developing countries find it very difficult to face competition from developed countries. Special role of science and technology: International business gives a lot of importance to science and technology. Science and Technology (S & T) help the business to have large-scale production. Developed countries use high technologies. Therefore, they dominate global business. International business helps them to transfer such top highend technologies to the developing countries. International restrictions: International business faces many restrictions on the inflow and outflow of capital, technology and goods. Many governments do not allow international businesses to enter their countries. They have many trade blocks, tariff barriers, foreign exchange restrictions, etc. All this is harmful to international business. Sensitive nature: The international business is very sensitive in nature. Any changes in the economic policies, technology, political

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environment, etc has a huge impact on it. Therefore, international business must conduct marketing research to find out and study these changes. They must adjust their business activities and adapt accordingly to survive changes. Options for doing international business Exporting or importing goods and services. Giving license to produce goods in the host country. Starting a joint venture with a company. Opening a branch for producing & distributing goods in the host country. Providing managerial services to companies in the host country.

2. Subject of research: Amway is a direct selling company that uses multilevel marketing to sell a variety of products, primarily in the health, beauty, and home care markets. 2.1. About Amway Type Private Founded 1959 Founders Rich DeVos, Jay Van Andel Products Amway Home, glister, G&H, Nutrilite, Artistry, AmwayQueen, eSpring, ATMOSPHERE Parent Altico Headquarters Ada, Michigan, US Website http://www.amway.com 2.1.1. History and international expansion 1959: founded by Rich DeVos and Jay Van Andel friends since school days in US. 1971: expanded to Australia 1973: Europe 1974: parts of Asia 1979: Japan 1985: Latin America 1995: China 1997: Africa

1998: India and Scandinavia 2005: Russia 2008: Vietnam 2.1.2. Market share 2004: health and beauty products accounted for nearly 60% of worldwide sales 2006: was ranked No.114 among the largest global retailers by Deloitte 2010: No.32 among the largest private companies in the U.S. by Forbes 2.2. Amway Vietnam 2.2.1. qu trnh pht trin - Cui nm 2006, Cng ty TNHH Amway Vit Nam - chi nhnh ca Tp on Amway
(cng ty con ca tp on bn hng trc tip hng u th gii Alticor) - c bc i u tin ti th trng Vit Nam bng s kin khai trng nh my sn xut khu cng nghip Amata, tnh ng Nai - trong nm 2007, Amway thnh lp tr s chnh v trung tm phn phi khu vc ti TP.HCM v nh my sn xut ti ng Nai - 2008 chnh thc i vo hot ng vi vic khia trng vn phng, trung tm phn phi, trung tm hun luyn, nh my sn xut. 2.2.2. Thnh tu t c