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PO1: Apply knowledge of management theories, practices & technological skills to solve business problems.

PO2: Ability to understand, analyze critically and communicate global, economic, legal and ethical aspects of business for decision making.

PO3: Foster development & team spirit, analytical & critical thinking

PO4: To develop value based leadership.

Program Outcomes

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CO1: Understanding the scope of International Business.

CO2: Students will be evaluating the country attractiveness, impact on business models.

CO3: Understand International Finance decisions and impact on operations.

Course Outcomes

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International Business, instead of detracting from our business, is now additive to our business.

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Definition of International Business

Any business that crosses the national borders of a country.
Expansion of business functions from domestic to any foreign country with an objective of fulfilling the needs and wants of international customers.
The exchange of goods and services, resources, knowledge and skills among individuals and businesses in two or more countries.
A commercial enterprise that performs economical activity beyond the bounds of its location, has branches in two or more foreign countries and makes use of economic, cultural, political, legal and other difference between countries.

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Nature of International Business

Need accurate and timely information to make an appropriate decision
Size of International Business should be large in order to have impact on the foreign economies.
Geographic market segmentation
More potential than the domestic markets – IBM, Coca-Colas, P&G sales are more than domestics sales
Consider the consumers willingness to buy and also ability to buy the products

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Importance of International Business

Earn Foreign Exchange
Get Benefits from Government
Optimum Utilization of Resources
To increase market share
Increase competitive capacity
To spread business risks

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Scope of International Business

Benefiting from Currency Exchange

Licensing and Franchising

Foreign Direct Investment

Global Integration of Business

International Marketing

International Finance and Investment

Global HR

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Factors contributing to rapid growth of International Business

Increase in and expansion of technology
Liberalization of cross-border trade and resource movements
Development of services that support international business
Growing consumer pressures
Increased Global Competition
Changing Political Situations
Expanded Cross-National Cooperation
Stagnation in Some of the Developed Markets

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Classification of Multinationals Depending upon their origin

Succeed at home and spread with home influence

Ethnocentric

Understand complete background and focus on a specific region

Regiocentric

Focus on one continent and strengthen

Continental

Group the requirement of the whole continent and provide product and services

Polycentric

Facilitate accessibility to customers

Transnational

Cross the borders and serve the customers at door steps

Global

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Stages of Internationalization

Domestic Company

International Company

Multinational Company

Global Company

Transnational Company

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Limits its operations vision, mission to the national boundaries
Focus its view on the domestic market opportunities, domestic suppliers, domestic financial companies, domestic customers etc.
Formulate the strategies to exploit the opportunities offered by environment
Never things of growing globally
In case of growth approach – selects the diversification strategy of entering into new markets, new products, technology etc.

Domestic Company

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Some domestic companies think of internationalizing its operations
Remain ethnocentric or domestic country oriented
Focus is on domestic but extends the wings to the foreign companies
Locating the branch in the foreign markets and extend the same domestic operations into foreign markets
International Company holds the marketing mix constant and extends the operations to new countries

International Company

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International companies turn into multinational companies when they start responding to the specific needs of the different country markets regarding product, price, promotion etc.
Multinational company is also called as ‘Multi-domestic company’. Formulates different strategies for different markets, thus the orientation shifts from ethnocentric to polycentric

Multinational Company

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‘Global Marketing Strategy’ or ‘Global Strategy’
Physical presence in other parts of world and cater to customers in different countries with standard products by consolidating resources from any part of the world
Shifts manufacturing base to more profitable locations, open a warehouses in SEZ
Train people to be multi-functional, multi-strategic

Global Company

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Multinationals have set up sub-headquarters close to the subsidiaries for easy accessibility
Transnational company produces, markets, invests and operates across the world
An integrated global enterprise which links global resources with global markets at profit
Solve the business problems arising from nearby countries through the sub-headquarters
Serving the purpose of administrative convenience