UniversityOf Finance & Administration INTERNATIONAL BUSINESS [NA_IB] Ing. Pavla Břečková, Ph.D. email@example.com BMCF I TM I Prague
INTERNATIONAL BUSINESS Full-time course = 12 sessions á 90 mins. 1-2/ What is international business (IB). IB basic indicators - balance of trade / payment. International business importance and influences, differences from domestic trading. Territorial / commodity structure of IB. Global business environment. Comparative advantage, free trade / economy. The main regional trading blocks. 3-4/ Internationalization and Globalization. Drivers of Internationalization. Categories of goods traded internationally (primary, low/high value, capital intensive). FACTORS influencing the IB environment (Political, Economic, Technological). Motives for foreign expansion (microeconomic view). Entry modes and business activities in IB (export, import, contractual, investment activities, FDI). Team work on the semestral project. 5-6/ Culture and its role in international business. Cultural elements and multi-culture communication (verbal, non-verbal, role of eyes, silence etc.). Hofstede’s five dimensions of culture differences. Negotiation and successful presentation of business results in the international environment. Team work on the semestral project. 7-8/ World business territories, Euro / Dollar zones. Emerging markets, newly industrialized countries. International market research (PEST/STEEP), and linkage to Competition analysis (Porter) and SWOT. Data collection and their selection in the international environment. Team work on the semestral project and prezentations. 9-10/ International trade barriers and their assessing. Forms of economic integration, international unions, free trade areas and multilateral agreements The main regional trading blocks (TRIAD). WTO, GATT. Impact of economic integration on micro environment (companies). IB policy instruments (autonomous, contractual) Team work on the semestral project and prezentations. 11-12/ Prerequisites and personal preconditions for working in international business. European Union principles of IB. Opportunities and threats of CZ membership in the EU. SWOT of Czech companies in the international business environment. Topical international business challenges and trends. International Business knowledge summary and evaluation, presentation of team business work results. INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / firstname.lastname@example.org
EXAM terms NA_IB • 12 lectures (per 90 mins) • Completion: exam / 6 credits • Completion CONDITIONS: • Active participation in the guided consultations • [active listening, discussing, reading, analyzing & interpreting of economic articles or case study results, presence at lectures – 50%] • Semestral study elaboration & it’s successful prezentation • Based on the above you’ll be offered a grade. • If unfulfilled / or if unhappy with the offered grade => written exam to prove the knowledge in IB
SEMESTRAL study / team work • CASE study on one of these topics: • 1. BUSINESS TRENDS / opportunities in the next 10 years • Largest threats & opportunities from the point of view of international business, where it (IB) is going. Areas where it is likely to find the business opportunities during next 10 years + explain what brought you to such results. • 2. EXPORT STRATEGY • Mid term view (3-5 years). What it should lie in, generally - how to support export (of CZ enterprises), concrete forms + in which business and industry areas (if in any / if not in all of them) + explain why • 3. Finding the COMPETITIVE ADVANTAGE for the Czech Republic • (and of the CZ businesses). Competitive advantage + consequently what areas of business and industry should be preferential (if any) + what to do for succeeding in international business from the point of view of competitive advantage (micro and macro view). Possibly also what kind of business environment (or changes in the present one) would help developing the CZ businesses competitive advantage?
SEMESTRAL study - elaboration • CASE study on one of these topics: • 1. BUSINESS TRENDS / opportunities in the next 10 years • 2. EXPORT STRATEGY • 3. Finding the COMPETITIVE ADVANTAGE for the Czech Republic • ELABORATION: • Elaboration in teams per 4-5 people • Presentation of the results - ppt possible, cca 10 min., structured way, clear outcomes (solutions, results) • PREZENTATION: • - Date – TBC • - up to 10 min. / all the team members should be involved
LITERATURE SOURCES Mandatory: Charles W. L. Hill: Global Business Today, McGraw-Hill/Irwin, 7th edition, 2011 Optional / Recommended: Allan Sitkin, Nick Bowen: International Business, January 2010. Woods, M.: International business. Basingstoke, Palgrave, 2001. ISBN: 0-333-75979-6. Wild, J., Wild, K., Han, J.: International business: the challenges of globalization. 4th ed. – Pearson, Upper Saddle River, 2008. ISBN: 978-0-13-174743-6. Griffin, R.W., Pustay, M.W.: International business: a managerial perspective. 5th int. ed. - Upper Saddle River, Prentice Hall, 2007. ISBN: 0-13-233532-8
INTERNATIONALIZATION – MICRO view 7. INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / email@example.com
INTERNATIONALIZATION – MACRO view • Basic drivers of INT: 8. INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / firstname.lastname@example.org
Goods traded internationally - categories For these reasons, GOODS which are traded internationally typically tend to fall into 4 broad categories: 9. INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / email@example.com
INTERNATIONALIZATION • - various research approaches INT = cover for international operations 10. INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / firstname.lastname@example.org
Dimensions of INTERNACIONALIZATION 11. INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / email@example.com
GLOBAL BUSINESS ENVIRONMENT Awareness of the GENERAL ENVIRONMENT – 2 levels of understanding BROAD = relevant to most companies [includes economy, political, tech. world and sociological issues] SPECIFIC = important to the individual business [includes customer / supplier relations, investor requirements, workplace issues] • Factors at BROAD level of IB understanding • – influences on the IB environment 12.
FACTORS with SIGNIFICANT INFLUENCES on IB (BROAD level of understanding IB) POLITICAL ECONOMIC • Integration of LDCsand • Centrally planned economies • into INT economy • Difficulties (& oppo) • raised by econ.inequalities • Role of OECD, WTO, • World Bank, EU commiss. • direction of INT • Trade & Investment • Environmental • concerns • INT economic agreem. • (liberalisated trade & capital • flows) => led to establishing • REGIONAL ECONOMIC • GROUPINGS - 3 main • trading blocks TRIAD • GATT (1947-95) =>WTO • 2 particular issues of • Importance for FUTURE: • Labour standards • Environmental issues • Economic cycles • in 50 years waves: • Prosperity • Recession • Depression • Recovery • INFROMATION & • COMMUNICATION wave • (1980/90’) • driven via NETWORKS • (comps, tech based com., • production, control systems) • TRANSPORTATION TECHNOLOGICAL 13.
MOTIVES for foreign expansion 14. INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / firstname.lastname@example.org
Entry modes & business activities in IB 15. INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / email@example.com
INT. TRADE INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / firstname.lastname@example.org
CONTRACTUAL international business activities INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / email@example.com
INVESTMENT business activities INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / firstname.lastname@example.org
International INVESTMENTS - generally INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / email@example.com
Further IB operations / countertrades INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / firstname.lastname@example.org
INTERNATIONAL BUSINESS - BMCF / TM - winter term 2012 Thank you for your attention Ing. Pavla Břečková, Ph.D. email@example.com