Page 11 - DMGT545_INTERNATIONAL_BUSINESS
P. 11

International Business




                    notes              (d)   Growth  of  global  networks  making  countries  interdependent  in  particular
                                            industries
                                       (e)   More companies becoming globally centered rather than nationally centered
                                       (f)   Increased formation of global strategic alliances
                                   5.   Other Drivers:
                                       (a)   Revolution in information and communication

                                       (b)   Globalization of financial markets
                                       (c)   Improvements in business travel

                                   self assessment

                                   Fill in the blanks:
                                   1.   The countries oriented towards market economies since ................ had severe competition
                                       from other business firms in the home countries.
                                   2.   ................ stability does not simply mean that continuation of the same party in power, but
                                       it does mean that continuation of the same policies of the Government for a quite longer
                                       period.
                                   3.   History of international business ................ with the evolution of human civilization.
                                   4.   International ................ includes any type of business activity that crosses national borders.
                                   5.   India,  during  ................  could  create  markets  for  its  products,  in  addition  to  mere
                                       exporting.

                                   1.3 Influences of International Business

                                   Because most of the countries are not as fortunate as the India in terms of market size, resources,
                                   and  opportunities,  they  must  trade  with  others  to  survive;  Hong  Kong,  has  historically
                                   underscored this point well, for without food and water from china proper, the British colony
                                   would not have survived along. The countries of Europe have had similar experience, since most
                                   European nations are relatively small in size. Without foreign markets, European firms would
                                   not have sufficient economies of scale to allow them to be competitive with US firms. Nestle
                                   mentions in one of its advertisements that its own country, Switzerland, lacks natural resources,
                                   forcing it to depend on trade and adopt the geocentric perspective. International competition
                                   may not be matter of choice when survival is at stake. However, only firms with previously
                                   substantial market share and international experience could expand successfully.

                                   Growth of overseas markets

                                   Developing  countries,  in  spite  of  economic  and  marketing  problems,  are  excellent  markets.
                                   According to a report prepared for the U.S. CONGRESS by the U.S. trade representative, Latin
                                   America and Asia/Pacific are experiencing the strongest economic growth. American markets
                                   cannot ignore the vast potential of international markets. The world is more than four times
                                   larger than the U.S. market. In the case of Amway corps., a privately held U.S. manufacturer of
                                   cosmetics, soaps and vitamins, Japan represents a larger market than the India.










          6                                lovely Professional university
   6   7   8   9   10   11   12   13   14   15   16