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INTRODUCTION TO INTERNATIOMAL BUSINESS

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ACCORDING TO PETER DUCKER

ALL INSTITUTIONS HAVE TO MAKE GLOBAL COMPETITIVENESS A STRATEGIC GOAL . NO INSTITUTION WHEATHER A BUSINESS A ,UNIVERSITY OR A HOSPITAL, CAN HOPE TO SURVIVE , LET ALONE TO SUCEED UNLESS IT MEASURES UP TO THE STANDARDS SET BY THE LEADERS IN THE FIELD ,ANY PLACE IN THE WORLD

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TRADING

TYPES OF INTERNATIONAL BUSINESS

MANUFACTURING AND MARKETING SOURCING AND MARKETING GLOBAL SOURCING FOR PRODUCTION

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SPECIAL PROBLEMS IN INTERNATIONAL BUSINESS POLITICAL AND LEGAL DIFFERENCES


CULTURE DIFFERENCES ECONOMIC DIFFERENCES DIFFERENCY IN CURRENCY UNITS DIFFERENCES IN THE LANGUAGE DIFFERENCES IN MARKETING INFRASTRUCTURE TRADE AND INVESTMENT RESTRICTIONS
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When an international business


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when businesses cross borders:

(subsidiaries)

production and operations, and marketing is done internationally, human resources belong to more than one country international investment is involved,
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Worldwide trend of the economies of the world becoming borderless and interlinked. National economies merging into an interdependent global economic system. Declining trade and investment barriers Perceived distances are shrinking due to advances in transportation and telecommunications. Material culture is beginning to look similar. Technological change: Telecommunications 9/12/12 Microprocessors and

DRIVERS OF INTNATIONAL BUSINESS

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WHAT IS AN MNC
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brings in additional capital brings in additional revenue via taxation technology transfer to local firms managerial knowhow skill development and training employment creation infrastructure development industry linkage effects export enhancement
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WHY MNC IN INDIA


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India is the second largest among developing nations based on the purchasing power parity indicator. Institutions supporting science, education and innovation Infrastructure development (power and energy, roads and ports, communications) Open or closed of economy (international orientation)
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INDIAS STRENGTH
Political System: Democracy

Government by people exercised directly or through elected representatives.

MIXED ECONOMY:
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Consumers influence production by exercising their power of choice Legal and institutional frameworks to safeguard economic choice

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INDIAS UNIQUE
Indian Youth
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Some 65 percent of India is below 35 and 50 per cent below 25. In 2025, the median age for India will be 31, against 39 for the US and China and 44 for Russia and the UK. The share of those aged 65 and above in the total population is less than 5 percent in India, compared to 19 percent in Japan, 18 percent in Germany, 12 percent in the US and close to 8 percent in China
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INDIAS EXPORTS 2012


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Indias Exports during February, 2012 were valued at US$ 24618.08 million (Rs.121039.96crore) which was 4.28 per cent higher in Dollar terms (12.84 per cent higher in Rupee terms) than the level of US$ 23608.36 million(Rs. 107266.46) during February, 2011. Cumulative value of exports for the period April-February 2011-12 was US$ 267409.89million (Rs. 1274839.70crore) as against US$ 9/12/12 220241.12million

INDIAS IMPORTS 2012


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IndiasImports during February, 2012 were valued at US$ 39781.68 million (Rs.195595.00crore) representing a growth of20.65 per cent in Dollar terms (30.56 per cent in Rupee terms) over the level of imports valued at US$ 32973.40 million ( Rs. 149817.29crore) in February, 2011. Cumulative value of imports for the period April-February, 2011-12 was US$ 434159.81 million (Rs.2069642.80crore) as against US$ 9/12/12 335502.15 million (Rs. 1529295.07crore)

TRADE BALANCE
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The trade deficit for April-February, 2011-12 was estimated at US$ 166749.92 million which was higher than the deficit of US$ 115261.03 million during AprilFebruary, 2010-11

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THANK YOU !

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