Beruflich Dokumente
Kultur Dokumente
Dr Navneet Gera
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Session Objectives
○ The objective is to discuss the
concept of International Business.
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International Business
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Concept of IB
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Role/Comparataive
Advantages - IB
○ Higher living standards
○ Large scale economies
○ Wider Market
○ Reduced risk
○ Economic growth of world
○ Increased socio-economic welfare
○ Optimum & proper utilisation of
resources
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Why go International?
1. Profit Advantage
2. Growth opportunities
3. Domestic market constraints
4. Competition
5. Monopoly power
6. Strategic vision
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Why companies go global
○ GROWTH MOTIVE
○ PROTECTION IN THE IMPORTING
COUNTRIES
○ SAVE ON TRASPORTATION COSTS
○ PREVENT FROM MARKET
COMPETITION BY ACQUIRING
POTENTIAL COMPETITORS
○ COST REDUCTION
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Driving Forces - IB
1. Liberalisation
2. MNCs
3. Technology
4. Quality & cost
5. Competition
6. World economic trends
7. Transportation &
communication revolution
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Restraining forces
1. External Factors
○ Govt policies & control
2. Internal Factors
○ Organisational culture
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Scope of IB
○ Opening a branch/subsidiary for
processing/packaging, assembly or even
complete manufacturing through direct
investment.
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Contd .
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Domestic/International Trade
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Contd..
1. Domestic – Mode of transportation
can be Air/Road/Rail.
○ International – Air/Ship
1. Domestic – Cultural knowledge can
be both merits & demerits
○ International – Language & culture
can be barrier to trade.
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Contd..
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Contd.
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BOTTLENECKS IN INDIA INC
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Assignment
➢ Scope of International Business?
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