International Business Ventures
Chapter 1
A.T. Kearney/ Foreign Policy Globalization Index:
Measures how globalized countries are on each point
- Economic international trade and investment
- Technological internet connectivity
- Personal contact international travel and tourism, international telephone traffic, and
personal transfers of funds abroad
- Political participation in international organizations and government
monetary transfers
Factors that increased globalization:
1. Increase in and application of technology
2. Liberalization of cross-border trade and resource movements
3. Development of services that support international business
4. Growing consumer pressures
5. Increased global competition
6. Changing political situations
7. Expanded cross-national cooperation
Why do companies engage in international business:
Operations objectives
- Expanding sales
- Acquiring resources
- Reducing risk
And when a company is gone international they have to decide on one of the suitable modes of
operations.
Modes:
- Merchandise exports and imports tangible
- Service exports and imports intangible
o tourism and transportations
o Service performance, like banking, insurance, rental, engineering
o Asset use, like use of trademarks, patents, copyrights (licensing, franchising)
- Investments
o Direct investment, like in FDI
o Portfolio investments, like stock or loans
Why do international firms differ from domestic firms?
Operating environment
- Physical factors and social factors
o Geographic influences
o Political policies
o Legal policies
o Behavioral factors
o Economic forces
- Competitive factors
,o Competitive strategy for products
Cost or differentiation strategies
o Company resources and experience
o Competitors faced in each market
, Chapter 5
Levels of moral development
1. Pre-conventional, learn what is right and wrong, but not understand why
2. Conventional, learn role-conformity
3. Post-conventional, internalize moral behavior
Teleological approach, decisions are based on the consequences of the action
Utilitarianism, an action is right if it produces the greatest amount of good
Deontological approach, moral judgments are made and moral reasoning occurs
independently
of consequences
Why do companies care about ethical behavior:
1. To develop competitive advantage
2. To avoid being perceived as irresponsible
Relativism, ethical truths depend on the groups holding them
Normativism, there are universal standards of behavior that all cultures should follow
Motivations for corporate responsibility:
- Unethical and irresponsible behavior can result in legal headaches, especially in such areas as
financial mismanagement, bribery, and product safety
- Such behavior could also result in consumer action such as boycotts
- Unethical behavior can affect employee morale. Conversely, responsible behavior can have a
positive influence on a workforce, both at corporate headquarters an in overseas facilities.
Lecture slides week 1
Chapter 1
A.T. Kearney/ Foreign Policy Globalization Index:
Measures how globalized countries are on each point
- Economic international trade and investment
- Technological internet connectivity
- Personal contact international travel and tourism, international telephone traffic, and
personal transfers of funds abroad
- Political participation in international organizations and government
monetary transfers
Factors that increased globalization:
1. Increase in and application of technology
2. Liberalization of cross-border trade and resource movements
3. Development of services that support international business
4. Growing consumer pressures
5. Increased global competition
6. Changing political situations
7. Expanded cross-national cooperation
Why do companies engage in international business:
Operations objectives
- Expanding sales
- Acquiring resources
- Reducing risk
And when a company is gone international they have to decide on one of the suitable modes of
operations.
Modes:
- Merchandise exports and imports tangible
- Service exports and imports intangible
o tourism and transportations
o Service performance, like banking, insurance, rental, engineering
o Asset use, like use of trademarks, patents, copyrights (licensing, franchising)
- Investments
o Direct investment, like in FDI
o Portfolio investments, like stock or loans
Why do international firms differ from domestic firms?
Operating environment
- Physical factors and social factors
o Geographic influences
o Political policies
o Legal policies
o Behavioral factors
o Economic forces
- Competitive factors
,o Competitive strategy for products
Cost or differentiation strategies
o Company resources and experience
o Competitors faced in each market
, Chapter 5
Levels of moral development
1. Pre-conventional, learn what is right and wrong, but not understand why
2. Conventional, learn role-conformity
3. Post-conventional, internalize moral behavior
Teleological approach, decisions are based on the consequences of the action
Utilitarianism, an action is right if it produces the greatest amount of good
Deontological approach, moral judgments are made and moral reasoning occurs
independently
of consequences
Why do companies care about ethical behavior:
1. To develop competitive advantage
2. To avoid being perceived as irresponsible
Relativism, ethical truths depend on the groups holding them
Normativism, there are universal standards of behavior that all cultures should follow
Motivations for corporate responsibility:
- Unethical and irresponsible behavior can result in legal headaches, especially in such areas as
financial mismanagement, bribery, and product safety
- Such behavior could also result in consumer action such as boycotts
- Unethical behavior can affect employee morale. Conversely, responsible behavior can have a
positive influence on a workforce, both at corporate headquarters an in overseas facilities.
Lecture slides week 1
