INTERNATIONAL BUSINESS chapter 1 power point

INterbis

1. An Overview of International Business Dr. Oliandes Sondakh

2. What Is International Business? Business transactions between parties from more than one country Parties may include: Private individuals Individual companies Groups of companies Governmental agencies

3. How Does International Business Differ from Domestic? Currency conversion Legal systems Culture Availability of resources

4. International Business Activities Exporting and Importing International Investments Licensing, Franchising, and Management Contracts

5. The Era of Globalization

6. “ Globalization: the inexorable integration of markets, nation-states, and technologies…in a way that is enabling individuals, corporations and nation-states to reach around the world farther, faster, deeper, and cheaper than ever before .”

7. Contemporary Causes of Globalization To leverage core competencies To acquire resources and supplies To better compete with rivals Changes in Political Environments To seek new markets Technological Changes

8. The Role of Culture

9. Culture is the collection of values, beliefs, behaviors, customs, and attitudes that distinguish one society from another. A society’s culture determines the rules that govern how firms operate in the society.

10. Adaptive Characteristics of Culture Learned behavior Interrelated elements Shared

11. Elements of Culture Language Religion Social structure Communication Values/ attitudes

12. Hall’s Low-Context, High-Context Approach Cultural Cluster Approach Hofstede’s Five Dimensions Theories of Culture

13. Ethics and Social Responsibility in International Business

14. Ethics are an individual's personal beliefs about whether a decision, behavior, or action is right or wrong.

15. Ethical Generalizations Individuals have their own personal belief systems People from the same cultural context will tend to hold similar beliefs Behaviors can be rationalized Circumstances affect adherence to belief systems National culture is intertwined with ethics

16. Corporate Social Responsibility is the set of obligations an organization undertakes to protect and enhance the society in which it functions.

17. Areas of Social Responsibility Organizational stakeholders Natural environment General social welfare

18. Approaches to Managing Social Responsibility Accommodative Obstructionist Proactive Defensive

19. Leadership and Employee Behavior in International Business

20. Theories of Motivation Need-based models Process-based models Reinforcement model

21. Thank you