Introduction to International business

Topics: International trade, Investment, International economics Pages: 26 (1381 words) Published: September 28, 2014
INTERNATIONAL BUSINESS

Pham To Mai
University of Economics and Law
National University of HCMC

INTRODUCTION TO
INTERNATIONAL BUSINESS

3

Course Introduction

Firm

Strategy,
Structure and
Operation of
International
Business
(Part 5&6)
PTM – Introduction to International Business

International
Business
Environment
(Part 2, 3&4)
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4

Course Books & Reference Books
Charles W. L. Hill (2011), International
Business: Competing in the Global
Marketplace, 8th Edition, McGraw-Hill/ Irwin,
New York.
Ricky W. Griffin, Michael W. Pustay (2013),
International Business, Seventh Edition,
Pearson.
Phillip R. Cateora, Mary C. Gilly, John L.
Graham (2011), International Marketing,
Fifteenth Edition, McGraw-Hill/ Irwin, New York.
PTM – Introduction to International Business

07-Sep-14

5

Course Requirements
Read textbook, cases & materials as
required in advance of each class
Actively listen and participate in the
class
Fulfill all individual and group
assignments
PTM – Introduction to International Business

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6

Course Assessment
Assessment
Participation in class
Individual Assignments
Group Assignment
60-minute Final examination
PTM – Introduction to International Business

Weighting
15%
15%
30%
40%
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7

What is International Business?
Any business transaction between
entities from more than one country to
serve their purposes.
Main Purposes for International
Business:
Expand the market and increase sales
Exploit foreign resources
Disperse risks
PTM – Introduction to International Business

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8

International Business Activities
International Trade: Exports and Imports
Trade in goods (tangible products) =
merchandise exports & imports = visible
trade
Trade in services (intangible products) =
service exports & imports = invisible trade

Turn-key Projects: contractual relationship
in which the contractor agrees to handle
every detail of the project for a foreign
client.
PTM – Introduction to International Business

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9

International Business Activities
Contract Manufacturing and Services
Outsourcing: contractual relationships whereby a

firm in one country contract out to a firm in a
second country production, service or processing
elements of its Global Value Chain (GVC).
General term: “outsourcing”
Management Contract: a firm in one country (the
contractor) agrees to operate facilities or
provide other management services to a firm in
another country in return for an agreed-upon fee
PTM – Introduction to International Business

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International Business Activities
Licensing: a firm (licensor) in one country
grants to a firm (licensee) in a second
country the right to use an intellectual
property in exchange for payment (a
royalty).

Forms of Licensing: brand licensing, product
licensing, and process licensing
In-licensing: a company acquiring a licence
from another firm
Out-licensing: sale of intellectual property
to other firms
PTM – Introduction to International Business

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11

International Business Activities
Franchising: a firm (franchisor) permits a firm
(franchisee) in a second country to utilize its
trademarks, logos, operating techniques and
to run a business modeled on the system
developed by the franchisor in exchange for a
royalty payment or a mark-up on goods or
services supplied by the franchisor.
Master franchising: a single equity owns of all
outlets in a market (a country or region)
Unit franchising: an individual entrepreneur
owns one or more outlets

PTM – Introduction to International Business

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12

International Business Activities
International Investment
Foreign Portfolio Investment (FPI)/ Foreign
Indirect Investment (FII): purchase of foreign
financial assets for a purpose other than control.
Foreign Direct Investment (FDI): investment
made for the...
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