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8/7/2019 I B Presentation

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Presented By:Neha AroraHR

InternationalBusiness


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INTERNATIONAL BUSINESS

International Business is allbusiness transactions thatinvolve two or morecountries.

International Businesscomprises a large andgrowing portion of theworlds total business.


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Advantages1) High Living Standard

2 ) Wide Market

3 ) Increase Social-Economic Welfare

4 ) Reduce Effect of Business Cycle5 ) Reduce Risk

6 ) Division Of Labour And Specialization

7 ) Optimum Utilization of Resources


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Di sadvantages1) Political Factor

2 ) Entry Requirement

3 ) Corruption

4 ) High Cost5 ) P ractice of Govt.


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Factors affecting the International

businessy Cultural differences

y Business / government differences

y Management and control of global operationsy Organizational structurey Human resource management

y Exploration of global marketsy Modify or redesign products appropriate for the intended

markety Be sensitive to the impacts of productsy Be sensitive to politically-vulnerable products


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International Business Environment

y Environment means surrounding . Business meansthe factor those surround the business .In otherword business environment means the factors thataffect the business.

y Business Environment Factors:

Internal Environment

External Environment


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Internal Environment

1) Organization Structure2 ) P roduction

3 ) Finance4 ) Marketing 5 ) Human Resource

6 ) Research & Development


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External Environment

1) Social & Cultural Factor2 ) Technological Factor3 ) Economic Factor4 ) Political Factor5 ) Natural Factor


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Globalizationy Th e United Nations ESCWA says globalization "is a widely-used term

th at can be defined in a number of different ways. Wh en used in aneconomic context, it refers to th e reduction and removal of barriers between national borders in order to facilitate th e flow of goods, capital,services and labour alth ough considerable barriers remain to th e flow of

labor.y Globalization is not a new ph enomenon. It began towards th e end of th enineteenth century, but it slowed down during th e period from th e startof th e First World War until th e th ird quarter of th e twentieth century.

y HSBC, th e world's largest bank, operates across th e th e entire HSBCgroup.

y Tom G. Palmer of th e Cato Institute defines globalization as "th ediminution or elimination of state-enforced restrictions on exch angesacross borders and th e increasingly integrated and complex globalsystem of production and exch ange th at h as emerged as a result."


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Growth of Globalizationy Tech nology is expanding, especially in transportation and

communications.y Governments are removing international business restrictions.y Institutions provide services to ease th e conduct of international

business.y Consumers know about and want foreign goods and services.y Competition h as become more global.y Political relationsh ips h ave improved among some major economic

powers.y Countries cooperate more on transnational issues.y Cross-national cooperation and agreements.


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Multinational Company(MNC )y Multinational corporation/company is an

organization doing business in more then onecountry .These companies have sale offices andmanufacturing in different countries

y MNC For Home Country:1) MNC create opportunities for marketing the

products produced in home country thought theworld.

2 ) Create employment opportunities.3 ) Home country can also get benefit of foreign

culture brought by MNC.


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MNC For Host Country1) Investment level increase.

2 ) Employment level

3 ) Income level

4 ) Economic Development5 ) Host country take benefit of foreign culture

brought by MNC.


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World Trade Organizationy The World Trade Organization ( WTO) is an

organization that intends to supervise and liberalizeinternational trade .

y

The organization deals with regulation of tradebetween participating countries;y It provides a framework for negotiating and

formalizing trade agreements, and a dispute

resolution process


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International Monetary fundInternational Monetary fund an organization set up in 19 44

to lower trade barriers between countries and to stabilizecurrencies by monitoring the foreign exchange systems of member countries, and lending money to developing nations.Purpose to oversee global financial health and provideassistance when needed to its members.Today, the IMF states its goals as"to promote international monetary cooperation,exchange stability, and orderly exchange arrangements;

to foster economic growth and high levels of employment; andto provide temporary financial assistance to countries to help

ease balance of payments adjustment."


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Human Resource Development (HR D)y Human Resource Development (HR D) is the

framework for helping employees develop theirpersonal and organizational skills, knowledge, andabilities.

y Human Resource Development includes suchopportunities as employee training, employee careerdevelopment , performance management anddevelopment, coaching, mentoring, successionplanning,

y Organizations have many opportunities for humanresource or employee development, both within andoutside of the workplace.


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HRD P rocessP reparing the job description and person specification.

Locating and developing the sources of required number

and type of employees (Advertising etc ).Short-listing and identifying the prospective employee withrequired characteristics.

Arranging the interviews with the selected candidates.

Conducting the interview and decision making.


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International Marketing y International marketing is the

multinational process of planning andexecuting the conception, pricing,promotion and distribution of ideas,goods, and services to create exchangesthat satisfy individual and organizational

objectives.


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International Marketing MixP roduct Development

Idea Generation

Idea Screening

Test marketing Commercial P roduction

P rice: P rice Decision , PolicesP romotion: Advertising , Personal Selling ,SaleP romotion , Public Relation

P lace/ Distribution: Heavy channels/networks.


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Thank you

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