EMGN578_U11_T01_PowerPoint and other information about it

Business services in india in india in practice

1. After this Lecture, you will be able to illustrate the need for collaborative arrangements in international business. Learning Outcome

2. Factors Affecting Operating Modes in International Business OPERATING ENVIRONMENT PHYSICAL AND SOCIAL FACTORS COMPETETIVE FACTORS OPERATIONS OBJECTIVES STRATEGY MEANS Modes Functions Overlying-Alternatives Self-conducted operations Collaborative operations

3. Why do you think Export & Import may not be sufficient as an alternative for International Business? Question that need to be Addressed

4. Companies may find production abroad is cheaper than at home. When transportation costs are too high for moving goods or services internationally. When company lacks domestic capacity. Reasons

5. News Article https://edition.cnn.com/2019/05/31/business/mexico-tariffs-auto-industry/index.html

6. Companies may find production abroad is cheaper than at home. When transportation costs are too high for moving goods or services internationally. When company lacks domestic capacity. Reasons

7. News Article https://timesofindia.indiatimes.com/business/india-business/trade-hit-by-record-60-surge-in-freight/articleshow/78797206.cms

8. Companies may find production abroad is cheaper than at home. When transportation costs are too high for moving goods or services internationally. When company lacks domestic capacity. Reasons

9. News Article https://www.business-standard.com/article/economic-revival/tyre-industry-calls-for-curbs-as-imports-remain-buoyant-despite-lockdown-120061701144_1.html

10. When products & services need to be altered substantially to gain sufficient consumer demand abroad. When governments inhibit the import of foreign products. When buyers prefer products originating from a particular country. Reasons

11. News Article https://fortune.com/2019/06/13/apple-iphone-china-production/

12. When products & services need to be altered substantially to gain sufficient consumer demand abroad. When governments inhibit the import of foreign products. When buyers prefer products originating from a particular country. Reasons

13. News Article https://www.businesstoday.in/current/economy-politics/more-import-restrictions-coming-toys-sports-goods-furniture-products-from-china-to-be-hit/story/411824.html

14. When products & services need to be altered substantially to gain sufficient consumer demand abroad. When governments inhibit the import of foreign products. When buyers prefer products originating from a particular country. Reasons

15. Foreign Expansions: Alternative Operating Modes

16. Why and how do companies make wholly owned Foreign Direct Investment? Question to be Addressed

17. Market failure Internalization theory Appropriability theory Freedom to pursue global objectives Reasons for Wholly Owned Foreign Direct Investment

18. Market failure Internalization theory Appropriability theory Freedom to pursue global objectives Reasons for Wholly Owned Foreign Direct Investment

19. Market failure Internalization theory Appropriability theory Freedom to pursue global objectives Reasons for Wholly Owned Foreign Direct Investment

20. Market failure Internalization theory Appropriability theory Freedom to pursue global objectives Reasons for Wholly Owned Foreign Direct Investment

21. News Article https://www.hindustantimes.com/india/dlf-may-bring-swedish-giant-ikea-to-india/story-ic5hW5qTnBaXF0L1ZIadSL.html

22. The advantage of acquiring an existing operations include: gaining vital resources that are otherwise hard to develop, making financing easier at times, adding no further capacity to the market, avoiding start-up problems. Acquisition Versus Greenfield

23. Companies may choose greenfield expansion if: host governments discourage acquisitions, it is easier to finance, available acquisition are performing poorly, personnel in acquiring and acquired firms may not work well together. Acquisition Versus Greenfield

24. Why do companies collaborate? Question to be Addressed

25. Motives for Collaborative Arrangements OBJECTIVES OF INTERNATIONAL BUSINESS Sales expansion Resource acquisition Risk minimization MOTIVES FOR COLLABORATIVE ARRANGEMENTS General Spread and reduce costs Specialize in competencies Avoid or counter competition Secure vertical and horizontal links Learn from other companies MOTIVES FOR COLLABORATIVE ARRANGEMENTS Specific to International Business Gain location-specific assets Overcome legal constraints Diversify geographically Moinimize exposure in risky environments