Beruflich Dokumente
Kultur Dokumente
MANAGEMENT
UNIT I
Antarctica
Asia
Europe
North America
South America
IMF IBRD
Versatile Business School, Egmore, Chennai - 600 008
EVOLUTION OF INTERNATIONAL
BUSINESS
Regional Integration
Declining Trade Barriers
Declining Investment Barriers
Growth in FDI
Strides in Technology
Growth of MNCs
Domestic Company
Limits operation, Vision, Mission to National political boundaries
International Company
Focus on domestic practices but extend wings to foreign
countries (Mere export-import)
Multinational Company
Different strategy for different market
Global Company
Either produce in one country and market globally or produce
globally and market domestically
Transnational Company
Produces, markets, invests and operates across the world
Regiocentric
Subsidiaries Geocentric
consider regional Companies view
environment for the entire world as
policy/strategy a single unit
formulation
Versatile Business School, Egmore, Chennai - 600 008
MODES OF ENTRY
Tariffs and import quotas Versatile Business School, Egmore, Chennai - 600 008
ADVANTAGES OF INTL BUSINESS
Wider market
Reduced risks
Large-scale economies
Cultural transformation
Political factors
Exchange instability
Entry requirements
Corruption
Technological pirating
Quality Maintenance
EXAMPLE:
EXAMPLE Coca-Cola, Pepsi, McDonalds burgers, Levis Jeans etc.,
FEATURES:
REASONS:
REASONS:
Liberalization
Avoid restrictions
Acquisition
Joint ventures
Technological collaboration
INTERNAL EXTERNAL
Organisational
Organisational Production Finance Marketing HR R&D
Structure
Structure
CULTURE
Prescriptive
Socially Shared
Learned
Subjective
Cumulative
Dynamic
Low-context cultures
High-context culture
Monochromic
Polychromic
Versatile Business School, Egmore, Chennai - 600 008
SOCIAL AND CULTURAL
ENVIRONMENT
Cultural Universals
Communication
Culture of friendship
Buying and selling goods and services from any country to any country in the world
Establishing manufacturing and distribution facilities in any part of the world based
on the feasibility and viability rather than national consideration
product planning and development are based on market consideration of the entire
world
Sourcing the factors of production and inputs like raw materials, machinery,
finance, human resources , technology and managerial skills from entire world
Global orientation in strategies, organizational structure, organizational culture and
managerial expertise
Setting the mind and attitude to view the entire globe as a single market
There were many barrier for free trade were laid down to support the
government expenditure
After II world war several international measures were undertaken to
liberalize trade and payment between nations
International monetary funds and international bank for
reconstruction and development were set up
International trade organization to deal with international trade was
sough to be set up
GATT (general agreement for trade and tariff)was set to liberalize
the trade and reduce the tariff amount
Tariff bargaining
Bargaining on non- tariff trade barriers
Elimination of quantum restriction
Settlement of disputes between contracting parties
Ministerial
conference
General council
Secretaria Committe
Council Council Committee Committe
t e e
For Council For trade On trade
Of the On On
Trade For Related And
WTO Balance Budget
In Trade Aspects of developme Of Finance
goods In Intellectua nt And
Payment
services l admin
restrcitio
rights
n
All the member countries of WTO are the representative of the ministerial
conference
Protection
Tap global
Reduce cost
Overcome tariffs
Technological advantages
Market superiorities
Financial superiorities
Technological superiorities
Product innovation
Produces the product required by the the home country as the transnational
equipment, technology on their own, thus they need large foreign exchange
resources
Developing countries, though they produces goods and services on their own by
importing technology and materials, they fail in marketing the product due to
severe competitions
Production area
Marketing area
Finance area
Environmental issues
Competing
Customs Union: (i) Member countries abolish all restrictions (ii) They adopt a
uniform commercial policy of barriers and restrictions
Common Market: (i) Member countries abolish all restrictions (ii) They adopt a
uniform commercial policy of barriers and restrictions (iii) They allow free
movement of human resource and capital
Economic Union: i) Member countries abolish all restrictions (ii) They adopt a
uniform commercial policy of barriers and restrictions (iii) They allow free
movement of human resource and capital (iv)Achieve uniformity in monetary and
fiscal policy
Evolutionary stages
Abolition of all obstacles for movement of persons, services and capital among member
countries.
Mexico.
OBJECTIVES
FUNCTIONS
Agriculture
Environment
Rural Development
Communications
The original name of ESCAP was Economic commission for Asia and far east
West: Azerbaijan
North: Mangolia
APEC has 21 members referred as Member Economies which accounts for more
than a third of the worlds population(2.6 billion people), approximately 60% of
worlds GDP and about 47% of world trade.
OBJECTIVES
Free transit of transportation goods, services and factors between the member states.
Borrowers
Lenders
Eurocurrency market
Eurocredit market
Eurobond market
The foreign exchange market allows currencies to be exchanged in order to facilitate international trade or
financial transactions.
The foreign exchange market assists international trade and investment by enabling currency conversion. For
example, it permits a business in the United States to import goods from the European Union member states
The system for establishing exchange rates has evolved over time.
From 1876 to 1913, each currency was convertible into gold at a specified rate
This was followed by a period of instability, as World War I began and the Great Depression followed.
The 1944 Bretton Woods Agreement called for fixed currency exchange rates.
The Eurocurrency market consists of banks (called Eurobanks) that accept deposits
and make loans in foreign currencies
The deposit can be placed in a foreign bank or in the foreign branch of a domestic
bank
In the 1960s and 70s, the Eurodollar market, or what is now referred to as the
Eurocurrency market, grew to accommodate increasing international business.
Bonds denominated in the currency of the country where they are placed but issued
by borrowers foreign to the country are called foreign bonds or parallel bonds.
Bonds that are sold in countries other than the country represented by the currency
In addition to issuing stock locally, MNCs can also obtain funds by issuing stock in
international markets.
This will enhance the firms image and name recognition, and diversify the
shareholder base. The stocks may also be more easily digested.
Note that market competition should increase the efficiency of new issues.
NASDAQ was also the first stock market in the United States to start
trading online, highlighting NASDAQ-traded companies
In 1992, it joined with the London Stock Exchange to form the first
intercontinental linkage of securities markets
The NASDAQ has over the years put in place a series of stringent standards
that companies must meet before being included in the index. Those standards
include the following:
Being listed exclusively on NASDAQ in either the Global Select or Global Market
tiers.
The Bank's functions are segmented into several operating groups including:
Project Finance / Trade Finance Group handles the entire range of export credit
services such as supplier's credit, pre-shipment Agri Business Group, to spearhead the
initiative to promote and support Agri-exports. The Group handles projects and export
transactions in the agricultural sector for financing.
Small and Medium Enterprise: The group handles credit proposals from SMEs under
various lending programmes of the Bank.
markets.
An outbreak of war or civil war may block or delay payment for goods
exported.
Registration: Register with Export promotion councils (EPC), Sales tax authorities
etc.,
Inquiry is the request made by a prospective importer regarding his wish to import
certain goods.
The forms used should be f.o.b., c and c.i.f ., f (Cost, Insurance and
Freight (CIF) vs. Free On Board (FOB)) or internationally accepted
form.
Versatile Business School, Egmore, Chennai - 600 008
PROFORMA INVOICE
Conditions of Sale:
Escalation Clause: Prices may increase before delivery of the goods due to
increase in cost of inputs. Hence, seller may include escalation clause
Other obligations:
Confirmed Order: The buyer sends the confirmed order to the exporter by signing
the duplicate copy of the invoice which becomes the confirmed order
The exporting house after receiving the order should produce the goods as
specified in the order.
The exporter should arrange for packing and marking of goods as per
International standards.
Exporters Encyclopedia
AR-4 forms
The exporter has to get custom clearance of the goods before they are loaded
on the ship. The list of documents to be furnished includes the following:
Proforma Invoice
Export License
Certificate of Inspection
Packing list
GR-I Form:
AR-4 Form:
Every manufacturer for clearance of excisable goods files an application AR-4 from his factory
for export
The clearances can be 'under claim for rebate of duty' or 'under bond.'
The goods can be examined and sealed at the factory by a central excise officer having
jurisdiction over the factory. After shipment of goods, the customs officer endorses AR-4 form
Certificate of Inspection: Certifying or non certifying about the fulfillment of National export
standards
Form of Declaration:
Value of goods
Port of Destination
Versatile
Names ofSchool,
Business the Egmore,
ship Chennai
and -its agent
600 008
Carting Order: Once the good for exports is ready and shipping order is
available, the superintendent of the concerned port trust gives permission
for physical movement of goods into port.
Let Ship:
Bill of lading
Submission of documents and process of getting payment through bank is called Negotiating the
Documents.
Documents include:
Bill of lading
Certificate of origin
GR-I Form
Letter of Credit
Invoice
Shipping Bill
Bill of Lading
Excise Duty Refund: Eligible for refund of paid at the beginning. Bonds can also be
executed without making payment.