Beruflich Dokumente
Kultur Dokumente
is NOT Enough
Business on an
International
Playfield
Dr. Sheelan Misra
Assistant Professor
New Horizon College, Bangalore
….
The Shrinking Globe
MADE IN CHINA
SOME MORE……
Let’s view…….
• The top 5 exporting countries
of merchandise?
• The top 5 exporting countries
of services?
• The top 5 importing countries
of merchandise?
• The top 5 importing countries
of commercial services?
Leading exporters in world merchandise trade,
2005
(in billions of dollars) (source: www.wto.org)
1000
900
800
700
600
500
400
300
200
100
0
Germany U.S. China Japan France
Leading exporters in world
commercial services trade,
2005
(in billions of dollars) (source: www.wto.org)
400
350
300
250
200
150
100
50
0
U.S. U.K. Germany France Japan
Leading importers in world merchandise
trade, 2005
(in billions of dollars) (source: www.wto.org)
2000
1800
1600
1400
1200
1000
800
600
400
200
0
U.S. Germany China Japan U.K.
Leading importers in world commercial services
trade, 2005
(in billions of dollars) (source: www.wto.org)
300
250
200
150
100
50
0
U.S. Germany U.K. Japan France
World Value in Exports and Imports (in
billions of dollars) (source: www.wto.org)
12000
10000
8000
6000 Exports
4000 Imports
2000
0
1948 1953 1963 1973 1983 1993 2003 2005
Expansion of International
Trade
• In the past 30 years, the
volume of international trade
has expanded from $200
billion to over $7.5 trillion.
International
Business
International Business
• Global consumer
preferences
Tastesand
preferences are
converging
Presence of mass
media, exposure to
goods from various
countries, and
International Business
(continued)
• Technological innovations
Advances in communications,
information processing, and
transportation technology
Fiber optics, wireless technology,
the Internet and World Wide Web,
and satellite technology
• Management across cultures
Adaptation to business strategies,
structures, operational policies,
and human resource programs
Modes of IB
• Merchadise Exports & Imports
• Service Exports & Imports
• Tourism & Transportation
• Performance of services(banking,
insurance)
• Use of assets (trademarks, patents,
copyrights,licensing agreements)
• Franchising
• Investments
• Direct Investment
• Portfolio Investment
WALMART CASE
• Largest retailer in the world
• Established in 1962
• 1991 – opened first store in Mexico
• 1995 - learned from its mistakes &
adapted its Mexican operations to
match the local environment
• 2002 – the company had more
than 1200 stores outside the
united states in countries like
Canada, Britain, Germany, Japan &
South Korea
A Fundamental
shift is
occurring in the
world economy
We are moving into the world in
which
• barriers to trade
• Perceived distance
• Similar material culture
• Interdependent global
economic systems
• The process by which all
this is happening is called
as……………
Globalization !
• Used by an Indian
• Set made in
China/Taiwan
• Chip made in US
• Transported to
India in the ship
owned by some
other country
people
GLOBALIZATION
Shift toward a more
integrated and
interdependent world
economy