Katedra řízení podniku a podnikové ekonomiky

INTERNATIONAL BUSINESS[B_IB]

Ing. Pavla Břečková, Ph.D.19063@mail.vsfs.cz

2.

INTERNATIONAL BUSINESS

KS = 3 guided consultations (winter term 2008) Framework of IB, it’s importance in national economy Reasons for exchange International business activities Entering foreign markets, entry modes (characteristics, risks, sources fixture)

Internationalisation Role of culture, cultural differences and their impact on mastering business

International trade barriers Competition in the international arena

Within each consultation: practical discussions on topical economical issues

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

3.

CREDIT conditions B_IB

KS = 3 guided consultations (winter term 2008)

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

CONDITIONS: PRESENCE at IB lectures active PARTICIPATION – communication, reading and discussing topical economic issues

short PRESENTATION - preparation at home - 5 min. presentation on economical topical issue

4.

Lecture content

Introduction of each participant

International business Framework of IB, it’s importance in national economy Reasons for exchange International business activities Entering foreign markets, entry modes (characteristics, risks, sources fixture)

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

5.

INTERNATIONAL BUSINESS / TRADE

What is international business?

= exchange of goods and services undertaken by

business bodies across the national border with the

foreign business bodies

INT business=

EXCHANGE across border

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

6.

INTERNATIONAL BUSINESS

Reasons for participation in IB? = the fact that almost no country is able to SATISFY its’ needs by own goods and base materials- countries concentrate on manufacturing products which are effective under given conditions (= theory of comparative advantage)

Free economy= stage of involvement in the international trade

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

1. ECONOMICAL 2. POLITICAL3. CULTURAL

7.

IB importance + influences

FREE TRADE (international exchange)

= is an aim of all the trade economies and consists in: convertibility (possibility to exchange currency) free price creation economical and political barriers elimination (duties, quotas etc.)

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

8.

International business - DISADVANTAGES

Weak self-sufficiency

(in case of war or political system change)

Dependence (the smaller and econ.developed country => the more important IB is for the country)

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

9.

IB INDICATORS [basic]

BALANCE OF TRADE = review of export & import volume in certain period of timeA) ACTIVE = export > import B) PASSIVE = export < import

BALANCE OF PAYMENTS= review of currency / exchange receipts and expendituresA) ACTIVE = payments abroad > receipts from abroad B) PASSIVE = payments abroad < receipts from abroad

MEZINÁRODNÍ OBCHODNÍ VZTAHY [MOV] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

10.

STRUCTURE of IB

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

11.

Ways of controlling IB

PROTECTIONISM – state intervenes in IB- protects the inner market against foreign competition - supports own products at the foreign markets

LIBERALISM – state limits the interventions in IB- export & import without restrictions- currency convertibility enables access to foreign currency purchases for free trade / exchange

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

12.

History of Czech IB

Before 2nd World War: orientation on western markets Czechoslovakia =10th most industrially developed country with cooperation and trade relations in western countries

After 2nd World War (communist period): CZ „manufactury“ of the communist bloc with over 70 % of export into these countries

1989 fall of socialism: CZ’s IB shift to the western partners again (Questionable move today)

2004 CZ joins EU: • Elimination of trade barriers (duties, quotas and other restrictions)• Solid business climate in CZ => inflow of FDI (often based on governmental INCENTIVES)

MEZINÁRODNÍ OBCHODNÍ VZTAHY [MOV] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

13.

CZ – joining EU

CZ member of EU since 1.5.2004 (in the wave of10 countries – the biggest enlargement in the EU history)

Further enlargement 1.1.08 (BG and RO)

Today 27 countries

Negotiations about another countries accession  

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

14.

Business Advantages & Disadvantages of Czech accession of EU

DISADVANTAGES - stronger competition - less freedom in some of state economical decisions

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

ADVANTAGES- duties elimination- free movement of goods / partly free mov.of labor- larger market (single market)

15.

INTERNATIONALIZATION

•- various research approaches•= kind of „DEVELOPING & evolutional“ process: 3 forms (acc. to the stage of involvement after expanzion)

INT = cover for international operations

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

16.

Dimensions of INTERNACIONALIZATION

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

17.

MOTIVES for foreign expansion

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

18.

Entry modes & business activities in IB

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

19.

Import & Export

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

20.

Contractual international business activities

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

21.

INVESTMENT entry modes

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

22.

Further IB operations

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

23.

CULTURE DIFFERENCES

= impact of culture on relationship, employees

approach to work, business management and

negotiations

-> this impact is much > than differences coming out from:

o race

o sex

o specialization [profession]

o position

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

24.

CULTURE and it’s elements

Culture

= characteristic way of living

= based on ACQUIRED models of behaviour (i.e. not

inborn)

Culture ELEMENTS ABSTRACT (values, approaches, opinions, religion – from generation to generation) MATERIAL (stage of development and types of: technology, structure of consumption in a country / society )

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

25.

CULTURE – abstract elements - impact on exchange

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

26.

CULTURE – abstract elements - impact on exchange

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

- International exchange

- Reasons for IB, advantages x disadvantages

- Free trade

- IB influences and IB indicators

- History of Czech international business

- Balance of trade, balance of payments

- Liberalism, protectionism

- Convertibility, trade barriers, free price creation

- Structure of IB (territory, commodity)

- Cyclical fluctuation / conjuncture

- Incentives (FDI)

- Entry modes (import, export, licence, franchise, alliance, JV, greenfield, acquisition)

- Switch, clearing, barter 27.

KEY terms

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

28.

Thank you for your attention

Ing. Pavla Břečková, Ph.D.19063@mail.vsfs.cz

INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz