商务战略培训教材

1、Brendan Boyle 2007 International Business Strategy Lecture 1 : Globalization and International Business Strategy Brendan Boyle 2007 Principle Learning Objectives Develop an understanding of international business and the globalization of markets and production. Develop an understanding of the princi

2、ple drivers of globalization and the implications of each for international business practice. Develop an understanding of the positive and negative effects of globalization. Develop an understanding of the critical challenges facing multinational enterprises competing in global and regional markets

3、. Develop an understanding of the implications of all of the above for international business strategy and practice. Brendan Boyle 2007 What is International Business?The business activities that involve the transfer of resources, goods, services knowledge, skills or information across national boun

4、daries.May involveIndividualsCompaniesGovernment bodiesInternational institutionsBrendan Boyle 2007 Discussion Questions. Why are domestic companies willing to take the risks involved in competing on a global scale?What are the risks of going international! Why do you think there are more companies

5、competing internationally now than ever before? Why are there far greater opportunities to engage in international business today?Market motives? Economic motives? Strategic motives?Brendan Boyle 2007 AN INCREASINGLY INTEGRATED & INTERDEPENDENT WORLD ECONOMYGLOBALIZATION of Market: Consumer tast

6、es e.g. Coca Cola, Levis, McDonalds, Nintendo. Multinationals create and benefit from this convergenceI.e. applying similar marketing, branding in several nations. GLOBALIZATION of Production: Outsourcing of Requirements to the most Efficient Locations e.g. Boeing 777. 132,500 component parts, 545 s

7、uppliers world wide. Locating Manufacturing / Service Facilities to Supply Markets most efficientlyGLOBALIZATIONBrendan Boyle 2007 Global Productione.g. USA eyewear company - Swan OpticalManufacturingDesign1-5Brendan Boyle 2007 The globalization of the supply chain Global Production0%5%10%15%20%25%3

8、0%North AmericaWestern Europe% of companiesCompanies without production in home country(source: Deloitte Research, 2003, Mastering complexity in global Manufacturing)Brendan Boyle 2007 Globalization of the supply chain global production0%10%20%30%40%Western EuropeOther SE AsiaEastern EuropeMexico Ch

9、ina0%20%40%US/CanadaOther SEAsiaCentralEuropeEasternEuropeChinaEntry and expansion plansoutside home regionManufacturing: top 5 destinations over the next three years(source: Deloitte Research, 2003)North AmericaWestern EuropeBrendan Boyle 2007 FUNDAMENTAL CHANGES IN THE ECONOMIC ENVIRONMENTBrendan

10、Boyle 2007 DEVELOPEMNT OF THE WORLD TRADING SYSTEM GATT General Agreements on Tariffs and Tradetreaty signed for the free flow of goods and services between nations WTO World Trade Organisationpolicing international trade.INCREASED INTERNATIONAL COMPETITION companies under attack in their home marke

11、ts seek gains elsewhere. LIBERALIZATION/PRIVATIZATION OF STATE MONOPOLIES AND SPREAD OF FREE MARKET ECONOMICS Brendan Boyle 2007 - Economic Environment of IBShiftCentrally Planned EconomiesMixed EconomiesMarket Based EconomiesThe spread of market based systemsBrendan Boyle 2007 - The spread of marke

12、t based systemsMarket Economy productive activities are privately ownedthe role of the government is to encourage fair competition which promotes efficiency and entrepreneurship. Should lead to economic growth. no state control over prices or quantity. Supply & DemandWhat do you think the govern

13、ments attitude to Foreign Direct Investment (FDI) is under this model? Centrally Planned Economy prices & quantities are planned by the governmentThis model is consistent with a collective ideology and the belief that the government should allocate resources for the good of society. Often leads

14、to inefficiency are government in a position to make the best decisions for society and business?What do you think the governments attitude to FDI is under this model? 2-7Brendan Boyle 2007 - Development of the World Trading SystemGovernments have worked towards a free trade ideals for over 50 years

15、*Liberalized their markets removing restrictions on foreign MNCs. Some of the more recent changes have been made in Foreign Direct Investment (FDI) regulation. FDI occurs when a firm invests directly in facilities to produce and/or market a product in a foreign country.5-20Changes in National Regula

16、tions of Foreign Direct Investment (FDI), 19912002Table 6.1 in your textBrendan Boyle 2007 Development of the World Trading System and FDI -MNC-Host Government Relationship: A Study in Love/HateHost Country GovernmentSought for its capital, technology, managementCourted for its global efficiency and

17、 world market accessFeared for its power and independenceMNCMNCMNCResented for the nations dependence on itDisliked for its impact on societyMNCMNCAccommodated for its contributions to local social and economic needsMNCBrendan Boyle 2007 *50 yrs - Developing a World Trading System GATT (General Agre

18、ement on Tariffs and Trade) proposed by US in 1947 with the aim to liberalize trade and reduce tariffsGATT has grown from 19 - 150 members (World Trade Organization) Used trade negotiations rounds to gradually reduce trade barriers and set up a generalized system of preferences.Brendan Boyle 2007 De

19、velopment of the World Trading System: Tariff Reduction Source - Hill (2006) International Business 6th edBrendan Boyle 2007 Umbrella organization for: GATT - rules originally only applied to manufacturing good now extended to trade in services and intellectual property Responsibility for trade arbi

20、tration: After appeal, fail to comply with WTO report can result in compensation to injured country or trade sanctions.9 of 10 disputes satisfactorily settled.104 disputes brought to WTO in first three years.Only 196 handled by GATT during its 50 year history.WTO in 2007 Doha round of negotiations c

21、ontinues Agriculture and Telecommunications are the hot topics!Viet Nam becomes 150th member of the WTO on Jan 11th 2007. Import Tariffs on 1,800 categories of goods reduced World Trade Organization5-3Brendan Boyle 2007 - Regional Economic Integration Another major development favoring free trade ha

22、s been the emergence of regional trade blocsE.g. North American Free Trade Agreement (NAFTA), the expanded EU and APEC. Regional Economic Integration Agreements among countries in a geographic region to reduce, and ultimately remove, tariff and non-tariff barriers to the free flow of goods, services

23、 and factors of production among each other.Frankel and Rose (2000) conducted a study to measure the impact of distance on international trade. They estimated that common membership of a regional trade bloc increases trade by as much as 330%!8-6Brendan Boyle 2007 The European Union In 2006, the Euro

24、pean Union is the biggest economy in the world (Source: World Bank) A single continental economy with a GDP close to 11 trillion Euros (20 trillion Australian dollars approx) Population 492 million27 member states since Jan 200713 countries have a single currency The Euro Enlargement has become a po

25、ssibility since the collapse of communism at the end of the 1980sOriginally created with just 6 countries from the European Coal and Steel Community in 1952.Brendan Boyle 2007 The North American Free Trade AgreementThe North American Free Trade Agreement (NAFTA) was ratified by the governments of th

26、e United States, Canada, and Mexico (1993)The contents of NAFTA includesOver 10 year period: tariffs reduced (99% of goods traded)Removal of restrictions on FDI except in certain sectorsAll countries experienced strong productivity growth However, the United States has lost 110,000 jobs per year due

27、 to NAFTA Many economists dispute this figure because more than 2 million jobs a year were created in the US during the same time periodBrendan Boyle 2007 Association of Southeast Asian NationsCreated in 1967Objective to achieve free trade between member countries and achieve cooperation in their in

28、dustrial Brunei, Indonesia, Laos, Malaysia, the Philippines, Myanmar, Singapore, Thailand, and VietnamBrendan Boyle 2007 ASEAN CountriesBrendan Boyle 2007 Asia Pacific Economic CooperationBrendan Boyle 2007 APEC CountriesBrendan Boyle 2007 The Volume of cross boarder trade is growing more rapidly th

29、an global output = national economies more closely integrated into a single interdependent, global economic system. 1960s US economy dominant in the world, by 1990 US share of world output cut in half by strengthening European and South east Asian Economies. The American dominance in FDI has been dr

30、amatically eroded by Japanese and European Multinationals.Brendan Boyle 2007 Volume of world trade and production, 1950-2002Fig: 1.1Brendan Boyle 2007 Lower prices for goods and services.Economic growth stimulation.Increase in consumer income.Creates jobs.Countries specialize in production of goods

31、and services that are produced most efficiently.1-13GLOBALIZATION - POSITIVE ASPECTSBrendan Boyle 2007 Destroys manufacturing jobs in wealthy, advanced countries.Wage rates of unskilled workers in advanced countries declines as supply for unskilled labour exceeds demand.Companies move to countries w

32、ith fewer labour and environment regulations. Most companies are ethical? Regulations can be built into free trade agreements A well treated labour force is a productive one.Loss of sovereignty. Super national organizations WTO.1-14GLOBALIZATION - NEGATIVEBrendan Boyle 2007 Countries markets / marke

33、t structures are different. E.G. Cultural, political systems, stage of economic developmentRange of commercial and technical problems are wider and more complex. How best to organize production Government intervention in trade and investment creates problems - E.g. local content requirements, quotas

34、 etc.Firms can exaggerate the attractiveness of foreign markets. focusing on consumer wealth and propensity to consume which place too much emphasis on sales. Distance has cultural, administrative or political, economic and geographic dimensions.INTERNATIONAL VS DOMESTIC BUSINESS - Implications for International Business Strategy Brendan Boyle 2007 The CAGE Distance Framework Cultural Distance Different languagesDifferent ethnic