Theory of Absolute Advantage

Theory of Absolute Advantage (Adam smith theory) Regarded as first formal theory in int’l trade Country’s wealth is based on its available goods/ services rather than gold Prescribes country to specialize in that product That give it competitive advantage. Advantage can be Natural/ Acquired. Natural adv. Considers climate and natural resources Acquired adv. Considers technology/

Positive affirmations

Functional Area of International Business

Functional area of IB Global Production/ Operations mgmt. Global Prodn. / mfg. Outsourcing. Benefits of Outsourcing. Risks/ Challenges of Outsourcing/ Global Sourcing Logistics Managing global supply chain. Total Quality Mgmt. Quality circle. Six Sigma. Inventory Mgmt. Just In Time (JIT). Foreign Trade Zones (FTZs) Transport mgmt. Concept of Global marketing/ Marketing Strategy. GLOBAL MARKETING. GLOBAL

International Strategic Management

Table of Content Int’l Strategic Mgmt Strategy & Opportunity Assessment Role of Strategy in Int’l Biz. Assessing Global Market Opportunities Estimating/ Assessing Market Potential 1.      Estimating Industry Market Potential 2.      Estimating Company Sales Potential Determinants of Company sales potential Approaches to Global mgmt 1.      Ethnocentric 2.      Polycentric 3.      Regio centric 4.      Geo-centrism Pressures for Cost

Global Business Environment

Global biz. Env. IB env is defined as the Total factor/ forces surrounding int’l operating firm That influence firm’s performance and global market Biz firm has 3 levels of biz. Env. Operating env: Cost of factors that come in firm’s operations Incl. competitor, creditors, customer, labor/ trade union, suppliers Industry env: Industry-specific factor identified by

Theories of Int’l trade and investment

Table of Content: Int’l trade and investment, Int’l Trade Theories, Initially evolved trade doctrines, Doctrine (Theory) of Mercantilism., Laissez-faire Doctrine, Theory of Absolute Advantage (Adam smith theory), Theory of Comparative Advantage (Ricardian Theory), Factor Endowment theory: H-O Theory, Int’l Product Life Cycle (IPLC) Theory, Theory of national competitive advantage, Porter’s Diamond, Implications of int’l trade

International Business

Concept and Nature of IB The exchange of goods and services among individuals and business in multiple countries. A specific entity, such as a multinational corporation or international business company that engages in business among multiple countries. Actors/ agents of IB are MNCs and Multi-national enterprises (MNE) A commercial transaction across country borders is known

Globalization

Globalization:  The process by which business or other organization develops international influence or start operating on an international scale is known as Globalization. The tendency of investment funds/ business to move beyond domestic and national market to other market around the globe is known as Globalization. International Business: The exchange of goods and services among