Dimensions and modes of IB

Unit-I
Topic 2
nd

Text
Daniels, John, D. and Radebaugh Lee H.:
International Business-Environments and
Operations, 9
th
edition (Pearson Education-
Low Price Edition)
Chapter 1: International business: An
overview
Pages: 1 to 25
Reference 1
Czinkota, Michael R. , Ronkainen, Iikka, A.
and Moffett, Michael H.: International
Business (6
th
edition) (Thomson South-
Western)
Part 1: The impact of International business
Pages: 3 to 17
Reference 2
Sharan, Vyuptakesh: International
Business-Concept, environment and
strategy (Pearson Education)
Chapter 1: Modes of international business
Pages: 15 to 32
Reference 3
Subba Rao, P.: International Business-Text
and Cases (2
nd
edition) (Himalaya
Publishing House)
Part I; Chapter 1: International business :
Nature, theories, and competitive
advantage.
Pages: 1 to 30
1. Export-Import 2. Tourism 3. Franchising /
Liscencing
4. Turnkey
operations
5. Management
Contracts
6. Portolio
investments
7. Foreign
Direct
Investment
Types of
International
Business



2. Tourism

Listed Companies in
Indian Tourism
Share price as on
24/7/006
P/E ratio
Advani Hotels (I) 72 16.7
Asian Hotels 563 23.9
Benaras Hotels 291 13.8
Blue Coast Hotel 84 -----
Country Club 123 10.2
4. Turnkey Services
Listed
Companies in
Indian Turnkey
services
Market price as
on 24/6/2006
P/E ratio
Alstom projects 179 19
Engineers India 414 16.1
Jaihind Projects 24 11.6
Larsen and
Toubro
2063 29
Mukand
Engineers
22 ---
Case study-2
What is an American Car?
Strange as it may seem, the question of what is an
American car may be difficult to answer.
Should a Honda Accord produced in Ohio be
considered American? What about a Chrysler
minivan produced in Canada (especially now that
Chrysler has been acquired by Germanys
Mercedes-Benz)?
Is a Kentucky Toyota or Mazda that uses nearly
50% of imported Japanese parts American? It is
clearly becoming more and more difficult to
define what is American, and opinions differ
widely.
For some, any vehicle assembled in North
America (the United States, Canada, and
Mexico) should be considered American
because these vehicles use U.S.-made parts.
But the United Auto workers Union views
cars built in Canada and Mexico as taking
away U.S. jobs.
Some regard automobiles produced by
Japanese-owned plants in the United States
as American because they provide jobs for
Americans.
Others regard production by these Japanese
transplants as foreign because the jobs
they create were taken from the U.S.
automakers, because they use nearly 40% of
imported Japanese parts, and because they
remit profits to Japan.
What if Japanese transplants increased their
use of American parts to 75 or 90%? Is the
Ford Probe, built for Ford by Mazda in
Mazdas Michigan plant, American?

It is difficult to decide exactly what is an
American car-even after the American
automobile Labeling Act of 1992, which
requires all automobiles sold in the United
States to indicate what % of the cars parts
are domestic or foreign.
One could even ask if this question is
relevant at all in a world growing more and
more interdependent and globalized.

In fact, in 1998, Ford introduced a world car
called Focus in Europe and in the United
states, which it developed at a cost of $2
billion and using parts from all over the
world.
Most other major international automakers
also seem to be moving in that direction.

Sources
Hondas Nationality proves troublesome for
Free-Trade Pact, The New York Times, October
9, 1992, p.1;
Want a US car? Read the label, The New York
Times, September 18, 1994, Section 3, p 6;
Made in America? Not exactly: Transplants use
Japanese car parts, The wall street Journal,
September 1, 1995,p.A3B;
and Ford hopes its new Focus will be a global
bestseller, The Wall street Journal, October 8,
1998, p.B 10