Evolution of ib

evolution of international business from post world war 1 to present

1. MASTER OF BUSINESS ADMINISTRATION IYEAR – I I SEMISTER SUBJECT: INTERNATIONAL BUSINESS FACULTY: MRS. JYOTHI RAO TOPIC : EVOLUTION OF INTERNATIONAL BUSINESS

2. EVOLUTION OF INTERNATIONAL BUSINESS PRESENTED BY: P.SHIREESHA SECTION - A1 (1325-17-672-038)

3. EVOLUTION OF INTERNATIONAL BUSINESS INTRODUCTION: Most of you have the experience of browsing internet and visiting different websites, knowing the products and services offered by various companies across the globe. International Business focuses on global resources, opportunities to buy / sell world wide.

4. EVOLUTION OF INTERNATIONAL BUSINESS First phase of globalization in 1870 Ended with World war I (1919) driven by Industrial Revolution in UK, Germany and USA Sharp increase in trade due to the import of raw materials and exporting finished goods to their overseas.

5. EVOLUTION OF INTERNATIONAL BUSINESS 1913- Ratio of trade to GDP = 22.1 1930- decreased to 9.1 International trade between two world wars is described as-‘A vast game of beggar-my-neighbor’ Felt need for International Cooperation Govt. interventions in imposing trade barriers to protect domestic production. IMF IBRD

6. EVOLUTION OF INTERNATIONAL BUSINESS Prolonged recession before world war II GATT by 23 countries in 1947 aiming at the establishment of the International Trade Organization

7. EVOLUTION OF INTERNATIONAL BUSINESS GATT: General Agreement on Trade and Tariffs. GATT provided a frame work for a series of “rounds” of negotiations by which tariffs were reduced.

8. EVOLUTION OF INTERNATIONAL BUSINESS Efforts to convert GATT into WTO were intensified during 1980. GATT was replaced by the WTO on 1 st january,1995

9. EVOLUTION OF INTERNATIONAL BUSINESS The efforts of IMF, IBRD (World bank) and WTO led to the “Globalization of business” particularly during 1990s

10. SHIFT FROM EXPORTING/IMPORTING TO INTERNATIONAL MARKETING India used to export raw cotton , raw jute and iron ore during early 1900s.

11. During 1980, India could create markets for its products like textiles, electronics, leather and steel products , tea, coffee etc ., Arranged appropriate distribution channels, attractive packaging, product development, pricing, etc,.

12. SHIFT FROM INTERNATIONAL MARKETING TO INTERNATIONAL BUSINESS In 1980s multinational companies produced the products in home countries and marketed them in various foreign countries. Later, MNCs started locating their plants and other manufacturing facilities in host countries.

13. HINDUSTAN LEVER LIMITED(HLL) Established its subsidiary company in India Produces its products in India and markets them in Bangladesh, Sri Lanka, Nepal etc.,

14. CONCLUSION: Thus, the scope of the international trade is expanded into international marketing and international marketing is expanded into international business. The 1990s and the new millennium clearly indicate rapid internationalization and globalization.

15. THANK YOU