Pfizer Financial Statement 2013

Topics: International trade, Globalization, World Trade Organization Pages: 34 (3467 words) Published: April 18, 2014
17/09/2013

Lecture 1: International Business and Globalisation

Dr Lim Ngat Chin, Eunice, PhD
Room ELG02, Block E (NEW WING –LOWER GROUND)
Lim.Ngatchin@nottingham.edu.my
Consultation hours: Mon 1300-1500; Tues 1030-1230;
Fri 0900-1100 or appointment by email

Session 1 content (IB)
 What is international business?

 What are the reasons for international business growth?
 What are the basic forms of international business activity?  Summary

2

1

17/09/2013

What is international business?

'It's not surprising. The production
department is in Spain, the
warehouse is in Korea, the
accounting division is in Bolivia, the
board of directors is in Canada.'

'I don't call expanding to New Jersey thinking
globally.'
3

What is international business?

"Nice to meet you. You must excuse
me I'm still suffering from jet lag."

Multi-national employee: 'What time is it!?
Where am I!?'
4

2

17/09/2013

International business …
 Refers to those business activities that involve the crossing of national boundaries. These include:
 Import and export of commodities and manufactured goods;  Investment of capital in manufacturing, extractive, agricultural, transportation

and communications assets;
 Supervision of employees in different countries;
 Investment in international services, e.g. banking, education, advertising, tourism, retailing and construction; and
 Transactions involving copyrights, patents, trademarks and process technology. These activities take place between individuals, firms, and other public and private bodies. The level of risk is higher in international business than those in domestic transactions. Why?

Source: Taggart, J H and McDermott, M C (1993) The Essence of International Business, Prentice Hall, Englewood Cliffs, NJ.

5

Domestic vs. international business.
Domestic
Business
Transactions occurring
within the boundaries of
a single nation

International
Business
International transactions
cross national boundaries

Key differences include:



Usage of different currencies,

forcing one party to convert its currency to another or

usage of an international currencies.



Difference in legal systems, forcing one or more parties to adjust their behaviour to comply with local law; the legal systems may also be incompatible, creating difficulties for international managers, e.g. labour laws



Cultural differences in doing business, e.g. Western vs. Asian method



Availability of resources differs from country to country, e.g. rich in natural resources but poor in skilled labour or the reverse.

Source: Griffin, RW. and Michael W. Pustay (2007), International Businesses: A Managerial Perspective, (5th ed.) Pearson Prentice Hall.
6

3

17/09/2013

International business strategy …
… is the way in which organisation position itself with
regard to the global business environment and creates
sustainable competitive advantage across national
boundaries (Harzing, 2002).
FOUR basic strategies to compete in international markets:
1.
2.
3.
4.

International
Localisation
Global standardisation
Transnational

These strategies will be elaborated later.
7

Session 1 content (IB)
 What is international business?

 What are the reasons for international business growth?
 What are the basic forms of international business activity?  Summary

8

4

17/09/2013

Reasons for international business growth
1

2

3

4

Increased returns
for shareholders

• Investment in companies which offer a competitively high rate of return

Market expansion

• The larger the market, the greater the potential for an
increased return on investment in design, R&D, production
and distribution

Resource
acquisition

Competitive forces

• Drive to secure materials, labor, capital and
technology

• Follow competitors in order to survive in the
business

Source: Griffin, RW....
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on In depth analysis of Financial Statements BP
  • Essay on Financial Statements
  • Financial Statements Essay
  • Essay about Financial Statements
  • Financial Statements Essay
  • Essay about Financial Statement
  • Financial Statements Essay
  • Financial Statements Essay

Become a StudyMode Member

Sign Up - It's Free