Dr. Sam Min CBA353 Office Hours: Friday 8:00am – 10:00am Read your text book first, come & take notes, and read newspapers Tests are straightforward, text, weakly reading, and lectures TEST 1 September 14 Chapters 1, 2, 3 TEST 2 October 5 Chapters 4, 5, 6, 7 TEST 3 October 26 Chapters 8, 9, 10, 11 TEST 4 November 16 Chapters 12, 13, 14, 15 FINAL Final Week Chapters 16, 17, 18 Assignments & in-class activities Total (50 points) (50 points) (50 points) (50 points) (50 points) (30 points) 280 points
CBA 300---Section 01
• The grading system will be as follows:
Total points Possible: 280 252 and more = A 224 to 251 = B 196 to 223 = C 168 to 195 = D Less than 167 = F
ASSIGNMENTS 1-5 Please read any article of your interest, which is related to International Business and (1) summarize the article (1/2 page) and (2) discuss what you learned from reading the article (1/2 page). • Do not write more than 1 page. • Use 12 font size, 1.5 spaced, 1-inch margins, and Times New Roman. • This assignment is worth maximum 4 points.
Due is on each testing date!
Chapter 1 – The Challenging World of International Business
International Business 13e
by Ball, Geringer, McNett, and Minor
Why you need global business perspective? • “Having a foreign perspective gives you an advantage not only for doing business outside U.S. but domestically, where we have the most diverse society in the world.” – Carlos Gutierrez, the CEO of Kellogg & US 35th Secretary of Commerce
CEOs of Fortune’s larges American corporations strongly believe: (1) An international orientation should be an important part of college business education (2) International business skills and knowledge were important not merely for promotion to senior executive positions, but also for appointment to entry-level positions, and across a broad array of functional as well as cross-functional areas (3) The above two points are even more important for those anticipating international activities increase in the next five years. 7
(1) Take IB course(s) (2) Consider going overseas (exchange program, intern, English teacher, volunteer, mission, etc.) (3) Learn foreign language
• What is international business? • IB Concepts and seven dimensions for globalizing a business • What is different about international business? • Growth of international firms and IB • What is globalization? • The drivers of globalization 9
What is International Business?
• International Business (IB): any business transaction across national borders – Trade in goods – Cross-border services consulting, advertising, legal, financial, accounting tourism, banking, communications/media, construction management, etc.
• Company activity inputs may involve IB activity even if outputs do not – Firm’s revenues may come entirely from the home country – Key raw materials, knowledge, processes may come partially or entirely from other countries
Concepts of International Companies
A Multidomestic Company has multi-country affiliates, each of which formulates its own business strategy based on perceived market difference A Global Company attempts to standardize and integrate operations worldwide in all functional areas.
The 7 Dimensions for Globalizing a Business
1. 2. 3. 4. 5. 6. 7.
Product Markets Promotion Where value is added Competitive strategy Use of non-home-country personnel Extent of global ownership in firm
What is Different about International Business?
• deals with 3 environmental forces: 1. Domestic 2. Foreign 3. International
Domestic Business • deals with the domestic market • But…may face foreign competition in domestic market
Why is International Business Different?: Forces in the Environment Environmental forces can be classified as external or internal. • External forces are uncontrollable, but perhaps can be...