1. International business

2. Regional and global strategy
By Aziz Ahmed Chaudhry
azizahmedch@gmail.com

3. Introduction

4. International business
 The study of transactions taking place
across national borders for the purpose of
satisfying the needs of individuals and
organizations.

5. Multinational enterprises (MNEs)
 A company headquartered in one country
but having operations in other countries.
 Exxon
 Wal-Mart
 General motors
 Toyota

6. World business: A brief overview

7. Exports and imports
 Exports:
Goods and services produced by a firm in
one country and then sent to another
country.
 Imports:
Goods and services produced in one country
and bought in by another country.

8. Foreign direct investment (FDI)
 FDI is equity funds invested in other
nations.
 The FDI is undertaken by MNEs who
exercise control of their foreign affiliates.
 Most of the world’s FDI is invested both
by and within three major groups:
 The US
 Western Europe
 Japan

9. The triad
 Triad:
The three major trading and investment
blocs in the international arena:
The united states, the EU and Japan.
 NAFTA:
(North American free trade agreement)
A regional free trade agreement between
Canada, the US and Mexico.

10. Today’s global environment

11. World economics
 OECD
(Organization for economic cooperation and
development)
A group of 30 relatively wealthy member
countries that facilitates a forum for the
discussion of economic, social and
governance issues across the world.

12. International trade regulation
WTO
(World trade organization)
An international organization that deals
with the rules of trade among member
countries.
One of its most important functions is to act
as a dispute-settlement mechanism.

13. International trade regulation
 GATT
(General agreements on tariffs and trade)
A major trade organization that has been
established to negotiate trade concessions
among member countries.

14. Technology
 Another major development that is
changing the way MNEs do business is
technology.
 Communication technology that has
advanced at such a rapid rate that all
businesses now use computers and rely on
the world wide web to both access and
send information.
 Application of technology is for the
production of goods and services.

15. Small and medium-sized enterprises
(SMEs)
 The definition of SMEs varies according to
the nation.
 In the US, SMEs are companies with up to
500 employees.
 In the EU, SMEs have between 11 and 200
employees and sales of under US $40 billion.
 In the Japan, SMEs in industry have up to
300 employees while those in wholesale and
retail have up to 150 and 50 employees
respectively.

16. Globalization and strategic
management

17. Regional triad strategies
 There are number of misconceptions that
people have about the world of
international business.
 One is the belief that multinationals have
far-flung operations and earn most of their
revenues overseas.
 Nestle is an exception to the rule.
 Most MNEs earn the bulk of their
revenues either within their home country
or by selling in nearby locales.

18. .
 In order to be successful, MNEs need to
create strategies that are regional not
worldwide in focus and they need to be
responsive to local consumers as opposed
to being global in nature and uniform
throughout.
 Another misunderstanding about MNEs is
the belief that they are globally monolithic
and excessively powerful in political
terms.

19. Strategic alliances
 A business relationship in which two or
more companies work together to achieve
a collective advantage.
 Maintaining economic competitiveness:
 one way was by continuing to be
innovative.

20. Porter’s determinants of national
competitive advantage

21. Porter’s determinants of national
competitive advantage
 After conducting a comprehensive study
of 100 industries in 10 countries, porter
found that the success of nation in
international competition is determined by
four broad attributes that individually and
interactively determine national
competitive advantage:
 Factor conditions, demand conditions,
related and supporting industries and the
environment in which firms compete.