The Institute Of Finance & Administration

INTERNATIONAL BUSINESS[B_IB]

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

2.

INTERNATIONAL BUSINESS

Full-time course = 12 lectures (summer term 2009) What is international business, what it consists in International environment IB importance + influences Basic IB indicators Structure of IB Way of controling IB INTERNATIONALIZATION: dimensions, motives Entry modes International TRADE, CONTRACTUAL and INVESTMENT business activities

Within lectures: - practical discussions on topical economical issues- article: reading + analyses- team prezentations & team competition

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

3.

CREDIT conditions B_IB

Full-time course = 12 lectures (summer term 2009)

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

CONDITIONS: PRESENCE at IB lectures: 50%

short TEAM PRESENTATION - preparation at home: 8-10 min. presentation on topical economical issue

lecture points based on active PARTICIPATION – communication, reading and discussing topical economic issues / team knowledge competition

4.

Lecture content

Global environment

GATT x WTO

Forms of Economic Integration

Culture and its impact on International Business

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

5.

International ENVIRONMENT

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

GLOBAL

MACRO

MICRO

6.

Global environment

in IB we are not limited by the national borders, no matter the size & type of company

change of global COMPETITION as a consequence of regional TRADING & MANUFACTURING agreements

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

7.

INTERNATIONAL BUSINESS

•CONSISTS IN:

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

8.

GATT – General Agreement on Tariffs & Trade

set up in 1947 to prevent causes leading to Great depression (in 1930’s)

AIM:

to REDUCE barriers to international trade

to PROMOTE a free & competitive trading

environment

to ensure the int. trade is conducted on a NON-

DISCRIMINATORY basis

by MFN principle (Most Favored Nation)

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

9.

WTO – World Trade Organization

created by GATT at Uruguay round in 1995 development of IB, more powerful non-tariff barriers WTO granted more power than GATT

AIM: to PROMOTE flows by encouraging nations to adopt non-discriminatory & predictable trade policies to REDUCE remaining trade barriers (emphasis on agricultural tariffs & subsidies + relaxing intellectual prop.rights of Pharmaceuticals in less developed countries)

establish IMPARTIAL PROCEDURES for resolving trade disputes

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

10.

WTO challenges

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

11.

Forms of integration

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

12.

International unions & agreements

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

13.

Impact of Economic Integration on firms

DISADVANTAGES - exposes a firm’s home market to competition

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

ADVANTAGES- opens markets - capturing Economies of Scale (= larger market =>lowering Ø production & distrib. cost)

firms’ viewpoint: integration = two-sided sward

14.

State IB policy INSTRUMENTS

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

15.

Summary of basic IB BARRIERS

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

16.

Tariff & Non-tariff measures

NON-TARIFF

Quota = qty restriction

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

TARIFF

- Fiscal- Protective- Retributive- Prohibitive

have important effects on consumption, production & structure of a domestic economy reason for imposing = e.g. protect infant industries

17.

Summary of basic IB BARRIERS

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

- Global environment

- International Business: trade / investment / other

- GATT

- WTO

- Economic Integration - forms

- Economies of scale

- IB barriers

- Duty x Quota

- Tariff x Non-tariff measures

- International unions

- State IB policy instruments

18.

KEY terms

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

19.

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