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INTERNATIONAL BUSINESS

INTERNATIONAL BUSINESS. Ilan Bijaoui 2007 ibii@netvision.net.il. THE POLITICAL SPECTRUM. Rule people. Authoritarian Facist Communist Authoritarian. Reactionary Conservative Liberal Radical. Islam. Control souls. DEMOCRACY. TOTALITARISM. Economy+Politics.

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INTERNATIONAL BUSINESS

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  1. INTERNATIONAL BUSINESS Ilan Bijaoui 2007 ibii@netvision.net.il

  2. THE POLITICAL SPECTRUM Rule people Authoritarian Facist Communist Authoritarian Reactionary Conservative Liberal Radical Islam Control souls DEMOCRACY TOTALITARISM Economy+Politics

  3. COMPARATIVE MEASURES OF FREEDOM POLITICAL RIGHTS Fair elections, representatives with power, political parties, rights of minorities CIVIL RIGHTS Freedom of press, equality under law, social freedom, government-corruption

  4. ECONOMIC SYSTEMS ·   Market Allocation: Consumers allocate resources. Competition + Consumer Protection (USA) ·   Command Allocation: State Planners. ·   Mixed Systems: Governmental Expenditures/GDP 32% USA, 64% Sweden

  5. POLITICS AND MANAGEMENT DECISIONS • Political risks: Micro (population) and Macro (government) • Government intervention: Individual-communitarian paradigm

  6. INDEX OF ECONOMIC FREEDOM Source: Heritage foundation www.heritage.org

  7. Map of countries by GDP (PPP) per capita, based on the 2005IMF data.

  8. WTO

  9. WTO

  10. Trade with China : 2000-6 NOTE: All figures are in millions of U.S. dollars. 2000 2004 2005 2006 SOURCE: U.S. Census Bureau, Foreign Trade Division, Data Dissemination Branch, Washington, D.C. 20233

  11. Trade with China : 2007 NOTE: All figures are in millions of U.S. dollars. SOURCE: U.S. Census Bureau, Foreign Trade Division, Data Dissemination Branch, Washington, D.C. 20233

  12. Source: PRC General Administration of Customs, China's Customs Statistics

  13. Income Gini coefficients in the world

  14. MOTIVATION PUSHES AND PULLS TO INTERNATIONALIZE TRADITIONAL MOTIVATIONS(Bartlett) ·  Expand sales, acquire resources, minimize risk . Secure Key Supplies ·  Access Low Cost Factors ·  Local Market Saturation-Competition ·  Market Seeking Behavior ·  Technology – Vernon Product Life Cycle

  15. EMERGING MOTIVATIONS ·  Economic, Technological, Social Developments ·  Amortization of R&D Expenditures(public telephone switching systems) ·  Shortening Product Life Cycle ·  Scanning & Learning Capabilities ·  Competitive Positioning (Cross Subsidization)

  16. NATURAL ENVIRONMENT Raw materials Energy costs Pollution Geography Know how Change Infrastructure TECHNOLOGICAL ENVIRONMENT Improvement Regulation PM 4.4 Natural and technological environments

  17. DEMOGRAPHIC ENVIRONMENT Age Family Population Education ECONOMIC ENVIRONMENT Spending patterns Economic PM 4.3 Demographic and economic environments

  18. POLITICAL ENVIRONMENT Interest groups Legislation Enforcement CULTURAL ENVIRONMENT Values Subcultures Shifts PM 4.5 Political and cultural environments

  19. LEGAL ENVIRONMENT • Public International Law: International conventions, custom • International Court of Justice (ICJ) • Private International Law: Common Law-tradition-precedent (English) US, India, Singapore- detailed contracts • Civil law(Codified) (Napoleonic Code) Thailand, Japan China. US Uniform Commercial Code. • Theocratic law : Islamic law Sha’riah

  20. ORIENTATION OF MANAGEMENT & COMPANIES Ethnocentric Home Country Superior, Similarities Regiocentric Geocentric Similarities & Differences Similarities & Differences In a world region In home & host Countries Polycentric Each Host Country is Unique, Differences

  21. INTERNATIONAL STRATEGY-EXPORTS • Local Distinctive Competence • Raw Material • Know how • Manpower • International risks • Knowledge protection • Investment protection

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