University Of Finance & Administration

INTERNATIONAL BUSINESS[NA_IB]

Pavla Břečková [Ing., Ph.D.]pavla.breckova@vsfs.cz

2.

Director for IB operations and Strategy (group of export SMEs)

Consultant GFA Hamburg (for expansion of SME, EU, MPO)

Association of SME of the Czech Republic - Board member (AMSP CR)

VŠFS [University of Finance and Administration] – Head of Business Management Department – English studies

AREAs of specialization: *precision engineering*automotive*building industry*nanotechnologies

Short introduction

3.

INTERNATIONAL BUSINESS – main areas

Full-time course = 12 lectures per 90 mins.

•INTERNATIONAL BUSINESS [IB], characteristics, indicators.

•WORLD BUSINESS TERRITORIES, challenges, integration, main

trading blocks [TRIAD, BRIC]

•GLOBAL BUSINESS ENVIRONMENT.

•EMERGING MARKETS, characteristics, features, selected

markets in detail

•BRICS

•Doing business in ASIA

•Foreign market analysis

•PREDISPOSITIONS for working in IB, expatriation and HR in IB

 

EXAM terms N_IB

12 lectures (per 90 mins) - Finished by: exam

Completion CONDITIONS = min. 12 points out of 30

Active participation in the lectures[active listening, discussing, reading, analyzing & interpreting of economic articles or case study results, presence at lectures – 50%]

Case study elaboration & it’s active professional prezentation Knowledge test

ALL BASED ON POINTS AS FOLLOW

5 points = 3/5 presence (if less = 0 points)up to 10 points = success at CASE study

& its prezentation up to 15 points = TEST

TOTAL max 3012 – 14 points = E15 – 16 = D18 – 20 = C21 - 23 = B24 – 30 = A

CASE study / team project

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 / or other country 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?

4. PRODUCT PLACEMENT – market study Placing of a product into a foreign market, including product description +

argument why it is suitable for export, analyses of the preferential market (why this market, structure and potential of the target group), mapping competition, potentials + risks, argument why you think your product will succeed.

CASE study - elaboration

CASE study on one of these topics:

1. BUSINESS TRENDS / opportunities in the next 10 years2. EXPORT STRATEGY 3. Finding the COMPETITIVE ADVANTAGE for a country4. PRODUCT placement – market study

ELABORATION: Elaboration in teams per 4-5 people Presentation of the results - ppt possible, cca 10 min., structured way, clear outcomes (solutions, results)

PREZENTATION:- up to 10 min. / all the team members should be involved

Team projects presentation - schedule

30/9/2013 introductory lesson, setting the teams, choosing

topics

14/10/2013 consulting on the team projects

28/10/2013 Czech bank holidays

11/11/2013 presentation of teams 1 + 2

25/11/2013 presentation of teams 3 + 4

9/12/2013 concluding the course, guest lecture Scott Venezia:

Doing business in Mexico

8.

LITERATURE SOURCES

Povinná literatura / Mandatory reading: Charles W. L. Hill: Global Business Today, McGraw-Hill/Irwin, 7th edition, 2011 Doporučená literatura / Recommended reading:Allan Sitkin, Nick Bowen: International Business, January 2010.  Stuart Wall, Dr. Bronwen Rees: International Business: A First Course, September 2009. 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. Woods, M.: International business. Basingstoke, Palgrave, 2001. ISBN: 0-333-75979-6. 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

9.

INTERNATIONAL BUSINESS

What is international business?

= exchange of goods and services undertaken by business bodies

across the national border with the foreign business bodies

= cross-border commercial

transactionsINT business

= EXCHANGE

across border

10.

INTERNATIONAL BUSINESS

•CONSISTS IN:

11.

International INVESTMENTS - generally

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

12.

How IB differs from DOMESTIC business?

currencies – conversions, risks, rates securing

culture – behavior, business practice

resources

technology – way of producing

often legal system – laws

13.

How IB differs from DOMESTIC business?

14.

STRUCTURE of IB

15.

STRUCTURE of IB

INTELLECTUAL PROPERTY: o products of the mind (SW, screenplays, music, chemical formula for a new drug). o can be protected by PATENTS, COPYRIGHTS, TRADEMARK

• PATENT – grants the inventor of a new product or process exclusive rights for a defined period to the manufacture, use, or sale of that invention

 • COPYRIGHT – exclusive legal rights of authors, composers,

playwrights, artists, and publishers to publish and disperse their work as they see fit

• TRADEMARK – designs and names, often officially registered, by which merchants or manufacturers designate and differentiate their products

Special hot issue: INTELLECTUAL PROPERTY

16.

Features / consideration:

– Dollar / Euro ZONE– Business Culture – Law enforcement– Business Barriers– Business threats / opportunities

WORLD BUSINESS

17.

The interesting QUESTION [from an economic perspective]

is what the above means for the future:

• the 19th century was dominated by Great Britain and Europe as colonial powers

• the 20th century by the USA as the great economic power

• the 21st century will be controlled by Asia, and China in particular

WORLD BUSINESS possible PROSPECT

18.

GLOBAL BUSINESS ENVIRONMENT

Session one is devoted to a discussion of the global context within which IB must function in the 21st century.

The aim is to describe the external framework which exists today and which will influence company strategies in the international arena.

There are clearly some factors that will be more important than others in determining the likelihood of success in international markets:

The state of the world economy and the rules and regulations governing INT trade and investment are critical

The political and social environment also impinges on businesses, i.e. consideration of the role of culture in IB / importance of cultural empathy to business success

20.

International ENVIRONMENT

GLOBAL

MACRO

MICRO

21.

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]

GLOBAL BUSINESS ENVIRONMENT

Factors at BROAD level of IB understanding – influences on the IB environment

IB OPERATIONS (micro / operational level)

22.

POLITICAL

• Integration of LDCs and Centrally planned economiesinto INT economy

• Difficulties (& oppo) raised by econ.inequalities

• Role of OECD, WTO,World Bank, EU commiss.- direction of INT Trade & Investment

• Environmental concerns

ECONOMIC

• INT economic agreem.(liberalisated trade & capitalflows) => led to establishingREGIONAL ECONOMICGROUPINGS - 3 main trading blocks TRIAD

• GATT (1947-95) =>WTO 2 particular issues ofImportance for FUTURE:- Labour standards- Environmental issues

FACTORS with SIGNIFICANT INFLUENCES on IB (BROAD level of understanding IB)

23.TECHNOLOGICAL

• 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

QUESTIONS to prove knowledge in IB

What is International business? Characterize, please. What IB consists in? 3 main categories.What is BARTER?What is FDI?What is HOME x HOST country?What is Portfolio investment? How IB differs from DOMESTIC trade? What are the main differences?What law / legal systems do you know? What is territorial / commodity structure of IB?GLOBAL business environment – 2 levels: Broad and Specific. Can you explain?Factors influencing IB: Political / Technological / Economic

INTERNATIONAL BUSINESS

Thank you for your attention

Ing. Pavla Břečková, Ph.D.pavla.breckova@vsfs.cz