...Question 3 “Ultimately, the study of international business is no different from the study of domestic business. Thus, there is no point in having a separate course on international business.” Evaluate that statement. Introduction The study of international business is more mind boggling than the study of domestic business. After mulling over the question for some time, I figured out that there is definitely some contrast between a domestic and international business. The difference between the businesses is that, International business is the exchange of goods and services across national borders whilst, Domestic business conducts commercial activities within the borders of the home country. Thus, after learning about the definition of both of them I can say that I do not agree with the statement. Therefore, in these following paragraphs, I will be discussing the differences between studying International business and Domestic business with the aid of two examples. Body When one travels from their home country to another foreign land, he/she do lots of planning. Example, he/she looks for the places to go, what is the currency difference, what is their cultural norms, what is their national language, do the locals converse in English, what is the country’s rules and regulations, and others. In the same way, when we are doing business with a foreign country we need to consider matters like the above. Hence, International business possess a much higher and complex level...
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...Addressing International Legal and Ethical Issues Simulation Summary LAW/421 August 31, 2015 Addressing International Legal and Ethical Issues Simulation Summary There are a few issues that must be considered in determining the best way to resolve legal disputes in an international transaction. Change in legislation, international laws and cultural difference are among the issues to consider. An issue that must be considered is how the contract was set up. If the company chose the wrong type of law when setting up the contract, then the company will not be protecting itself legally. Another issue to consider is what process would be used to resolve the dispute. Litigation, arbitration or some other alternative option that will best benefit the organization. Litigation in international courts has a low rate of success, and there is no governing body to enforce the ruling. Some practical consideration for taking legal action against a foreign business partner that is base in another country are ethical. Working condition that would be accepted in an undeveloped country would not be not be accepted in a developed nation. Miss treatment of employees is an issue that a business partner could take legal action another. Employees have a right that need to be also protected how a partner treat their employees reflect on the company as a whole. If granting the sublicensing agreement would hurt the firm in a country, then the government may not allow the agreement to take...
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...[pic] University of Information Technology and Sciences Assignment 1 Why International Companies differ from Domestic Companies Course Title: International Business Course Code: BUS 341 Department: BBA Date of Submission: February 16, 2012 Prepared For: Ayesha Binte Safiullah School of Business Prepared By: Samiul Islam Abir. ID 09310175 Why international companies differ from domestic companies? The companies doing their business in two or more country are international companies and the companies doing business in a single country only are domestic companies. There are many differences between these two types of companies. These differences occur due to the difference across borders. Nation-states generally have unique government systems, laws and regulations, currencies, taxes and duties, and so on, as well as different cultures and practices. So, What is Domestic Business: Domestic business is the exchange of goods, services, or both within the confines of a single national territory. It is always aimed at a single market and deals with only one set of competitive, economic, and market issues. The exchange is always with a single set of customers all the time, though the company may have several segments in a market. Domestic business may be sub-divided into Wholesale business, and Retail business. Wholesale is concerned with buying goods from manufacturers or dealers in large quantities...
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...Second assignment issued by Fatima Bagherian Daniel Pisch Business E2020 (evening) 12.11.2015 1 Contents Foreword…………………………………………………………...............3 Methodology………………………………………………………………….4 Referencing..………………………………………………………………5-6 Task 1 - question 1.……………….……………………………………….7 Question 2………….……………….…………………………………….....8 Question 3…………………………………………………………………….9 Question 4…………………………………………………………………..10 Question 5…………………………………………………………………..11 Task 2 – question 1………………………………………………....12-13 Question 2…………………………………………………………………..14 Question 3…………………………………………………………………..15 2 Foreword This assignment has been commissioned by Fatima Bagherian. In order to do this assignment student must study the Unit 4 marketing principles. The goal of this assignment is that the student is able to: Explain how products are developed to sustain competitive advantage Explain how distribution is arranged to provide customer convenience Explain how prices are set to reflect an organization’s objectives and market conditions Illustrate how promotional activity is integrated to achieve marketing objectives Analyse the additional elements of the extended marketing mix Plan marketing mixes for two different segments in consumer markets Illustrate differences in marketing products and services to businesses rather than consumers Show how and why international marketing differs from domestic marketing 3 Methodology Method used in gathering useful...
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...selection and customer service. INTERNAL ANALYSIS: Staples is a strong company with an IFEM score of 2.64 Finance Staples has a weak financial rating despite its overall strong IFEM rating. In looking at valuation ratios, Staples does look pretty good if you were looking to invest in this industry. Although Staples is performing well below the industry in P/E Ratio (9.11 vs. 14.5) they do have a lower price to cash, price to book and price to sales ratios and they are paying higher dividends (3.45 vs. 1.80) when compared to the industry. These indicators do paint a more favorable picture for investors. This fact does not offset some of the weaker financial indicators. Even though their 5 year growth rate is nearly double the industry (6.82 vs. 3.86), recent growth rates are very alarming as they measuring far below the industry average (-1.10 vs. 5.11). This is especially concerning because it shows growth in the industry but a retraction for Staples. Total debt to equity looks okay when measured against the industry (28.70 vs. 41.35) but margins are just over half if the industry average (26.91 vs. 49.85). Add to these weak indicators the excessive amount of goodwill ($4 billion) and Staples must be evaluated as a weak financial company. A shrinking...
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...demographics * MNE- types of companies involved * Democratic politics, free market economies The World Is: * Prusak- distinguish information from knowledge (difference) * IMPORTANT- the issue of access to info- but no knowledge * Ghemawat- 10% presumption, factors of time zones, languages, proximity shows that distance does matter, the world isn’t flat Opportunities & Challenges of globalization for managers * Differences of managing international vs. domestic * Boeing: benefits of globalization maximize efficiency of production but actually caused problems; lack of planning, communication, not simple for this industry (knowledge intensive industry) better for in house Localization * Standardization is ending, consumers are diverse- customization for local * Data analysis & innovation * Centralized vs localized * SWOT analysis National Differences * Political economy- system of gov. Political, economic & legal influence each other. Collective vs individualism * Economic system- three types: market command, mixed * Legal system- rules that regulate behavior, three types - CAGE framework & implications to managers - The world is spiky * Culture- definition, implications of differences, social culture in work place * Values, norms * Determinants of culture (6) * Hofestede dimensions: power distance,...
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...Fundamentals of Logistics Management International Business period 1 LAS: International Business period 1 overview 1 Fundamentals Schedule of Logistics Management Week Content number 1 World of International Business, International Business environment , theories on and types of international Trade, Project Traid and International business, cultural analyses Cultural analysis, Porter Porter, Risk analyses Risk analysis, CSA / FSA analysis CSA / FSA analysis Overflow 2 3 4 5 6 7 DO NOT FORGET Rugman H1, H2 H3, H5, H6 H5, H13, DO NOT FORGET LAS: International Business period 1 overview 2 THEORIES ON INTERNATIONAL TRADE • Absolute and competitive advantage • Heckscher and olin’s theorem • The leontief-paradox • The flying geese model LAS: International Business period 1 overview 3 THEORY OF ABSOLUTE ADVANTAGE (Adam Smith) Each nation should specialize in producing goods it has a natural or aquired advantage in and therefore can produce more efficiently LAS: International Business period 1 overview 4 THEORY OF COMPETITIVE ADVANTAGE (David Ricardo) It is advantageous for two countries to trade if the cost ratio between the two countries differ (If producing x, expressed in y, is cheaper in country 1 than in country 2, while producing y in country 2 is cheaper than in country 1 , country 1 exports x and country 2 exports y) LAS: International Business period 1 overview 5 HECKSCHER – OHLIN • Two production...
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...by their overall global positions. global firm is a firm that operates in more than one country and captures R&D, production, logistical, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors. Deciding Whether to Go Abroad ■ The company discovers that some foreign markets present higher profit opportunities than the domestic market. ■ The company needs a larger customer base to achieve economies of scale. ■ The company wants to reduce its dependence on any one market. ■ Global firms offering better products or lower prices can attack the company’s domestic market. The company might want to counterattack these competitors in their home markets. ■ The company’s customers are going abroad and require international servicing. The company must weigh several risks: ■ The company might not understand foreign customer preferences and fail to offer a competitively attractive product. ■ The company might not understand the foreign country’s business culture or know how to deal effectively with foreign nationals. ■ The company might underestimate foreign regulations and incur unexpected costs. ■ The company might realize that it lacks managers with international experience. ■ The foreign country might change its commercial laws, devalue its currency, or undergo a political revolution and expropriate foreign property. The internationalization process has four stages:8 1. No regular export activities...
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...MBA/ EMBA Course Title | International Business Management | Course Code Number | | Credit hours | Two (2) | Course Objective | Main Objective | This course is designed to help students in developing better understanding about the international business system. The objective of the course can be divided into two major categories. 1) To provide in depth knowledge about international trading system and 2) To provide information about diverse and complex task performed in international business operations. This course aims in developing skills required by international business managers to perform well in international market. | Enabling Objectives | After completion of all the learning units and the requirements of the course, students will be able to: 1. Understand the economics and politics of international businesses and management. 2. Understand strategies and structures that firms adopt to compete effectively in international business environment. 3. To formulate functional aspects of international business. | Course Requirements | Students are expected to have basic understanding about the international business. They are required to know about the concept of international trade theories, international business environment (Political, economic, socio-cultural and Technological), different modes of entry into international businesses. Students are also expected to have basic idea about national polices related with international trade and investment implemented...
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...challenges when entering a new market 6. Pros and Cons of entering a new market with an adapted/standardized product 7. Characteristics of culture 8. Conclusion 9. Values in Culture 10. Value Similarities and Differences across cultures Introduction to Culture There is no doubt that the international marketing process do face a large set of variables as it take place over different countries and it does act in different environments. One of the most determinant environments to the success of the international marketing process is Culture, which hold the reason for many human acts and behavior. Reaching to that point international marketer should study deeply culture treaties of a country the company is planning to act in. so that special amendments in the organization overall plans and actions is made to act in accordance with the new market variables The role of culture in international business and marketing Culture is a distinctive element of international marketing. While factors besides culture are present, culture could be a key determinant of most overseas relationships. Researchers agree that exchange processes within business networks can only be understood by conducting studies in different countries and cultures. For example, studies of joint ventures between China and the USA have suggested that the national cultures of the participating partners were one of the important variables that determined their success. Culture could relate...
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...Initiatives • Conclusions Note: Observations are personal, not MAS Overview of Singapore’s Insurance Sector (1) • Focus of the direct sector is largely domestic • Reinsurance sector (esp general) has strong international component • International and regional business is growing • Most general insurers are foreign-owned • Two of the largest life-insurers are local • One is an important regional insurer • Most of the other life insurers are foreign Overview of Singapore’s Insurance Sector (2) • • • • • • • • 165 Insurance Companies, including: 11 life insurers 55 general insurers 6 composite insurers 5 life reinsurers 18 general reinsurers 9 composite reinsurers 61 captive insurers Overview of Singapore’s Insurance Sector (3) Insurance industry is mature, well developed and traditional in structure: • Most products sold through agents • Bancassurance growing • Direct sales small • Major life products: protection; investmentlinked • Major general products: motor, fire, marine & aviation, workmen’s compensation Overview of Singapore’s Insurance Sector (4) Despite maturity, domestic market not fully exploited: • Assets managed represent about 50% of GDP • Life insurance penetration 66% of households • Life premium density 3.8% of GDP (vs 5.1% in industrial countries) • General premium density 1.5% of GDP (vs 3.8% in industrial countries) Overview of Singapore’s Insurance Sector (5) Recent Trends: • Investment-linked products growing (63% of premiums, but 18%...
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...University of Phoenix Business Law LAW/531 July 20, 2015 Week 6 Legal Concepts: Shenyang v US Managers who have business internationally have to worry about different areas of business because it is much different than domestic business relations. These areas are the different types of culture, level of competition, market intelligence, politics/government /legal systems, international law (Trade Smart, n.d.), just to name a few. In the case of Shenyang Yuanda Aluminum Engineering Co. v. United States the company had to worry about international laws that are governed by the United States International Trade Commission. These laws dictated that International Trade Commission would do their part by investigating any allegations against another entity and if it is not able to resolve the dispute than the businesses could be disputed the appropriate courts such as the International Trade Courts. Part of doing business internationally is assuming that risk is at the forefront. Managers have to manage and understand the risk that is involved with doing business internationally. Because this is a known factor management should develop policies, procedures, and processes that enable the company identify risk and monitor the risks associated with the business interactions. Management is also responsible for establishing appropriate due diligence at the time of the deal and the life of the relationship to manage any risk. One of the main issues with doing business internationally is...
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...Going International Exporting and international business can be interesting, exciting and in many cases challenging. In every case it should be a profitable choice as this is what fuel’s the business’ growth (Trade Start.CA, n.d.). Doing business internationally is not the same as doing domestic business. New skills are needed to learn in regards to laws and regulations, customers have different buying habits, and changes would need to be made to marketing strategies to appeal to the new market you are entering (Trade Start.CA, n.d.). Before entering a foreign market it is essential to clearly identify the motivations behind the decision to explore in the new marketplace. Determine what your domestic marketing strategy has been and how the plan employed by your company on local level might need to change in a positive way to tailor to the international territory (Forbes Woman, Sept. 2011). There are a few different things a business could do to prepare to leap in to the international market: educating yourself on the customs and business etiquette of the international market, gather historical data on the country’s currency value fluctuation and import/export timelines, becoming familiar with the country’s laws governing business, conducting a focus group to test the waters in the prospective international market, and find out what your competition is doing in the same market space (Forbes Woman, Sept. 2011). When entering a foreign market be sure to know the country’s...
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...Ethics & Issues Assignment Melchar Polk LAW/421 September 30, 2013 Professor Michael Carrozzo To be successful in conducting international business transaction it is imperative to have a real good written contract. Generally, contracts are the most common method that is being utilized by any type of businesses. When conducting a business transaction internationally, the contract clause must be very precise. It is extremely significant not only to spell out the rights of each party, their duties and responsibilities, but more importantly what process to be followed in case of a dispute. Some examples of dispute resolution clause are, what law governing the contract and dispute; what procedure to be followed; what method of resolution like arbitration or litigation - for arbitration, the complete process including constitution of the tribunal, applicable procedure, venue and language, and for litigation, the jurisdiction of the courts. It was mention in our simulation that it is a must to ensure the contract, which forms the basis of the agreement, is legally enforceable. The contract drafted must protect the company’s interest in the foreign country against all eventualities. Besides the legal aspects of international business, it is also important to consider the cultural and ethical differences inherent in such business transactions. CadMex should put into a consideration that, once you've licensed your asset, unless the contract specifies restrictions...
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...evolved domestically influenced by both business and social events leaving behind a renewed emphasis on human capital. Today’s environment requires business leaders to focus on the financial returns of the company as well as the contributions of strategic HRM to that end. Organizations are continuing to scan the business environment looking for opportunities creating value and differentiation. Increased evidence points to an engaged workforce as a competitive advantage for many companies and more than ever these organizations are looking to expand internationally. Successful global organizations have come to understand that western theories of HRM may not apply to other cultures and as a result have found ways to remain strategic with HRM outside of their domestic borders. Russian culture is primary example where HRM practices must be evaluated in the context of Russian culture and values. Global Human Resource Management (GHRM) refers to the policies and practices that relates to managing people internationally and according to Ivancevich & Konopaske (2013) the external environment of the international organization is one of the most important influences on HRM activities and culture. HR professionals no longer question the importance of cultural differences rather they turn their focus to understanding the differences and ensuring alignment between international culture and HRM often times referring to Hofstede’s five theories. Individualism vs. collectivism, power distance, avoidance...
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