Chapter 1
Chapter 1
Instructor
Fuad Hasan
MBA & Ph.D. (USA)
Professor of Marketing
University of Chittagong
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Chapter 1
Globalization
and International
Business
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Chapter Objectives
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Introduction
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International Business
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International Business
International business activities include:
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Studying International Business is
Important
• Most companies are either international or
compete with international companies
• Modes of operations may differ from those
used domestically
• The best way of conducting business may differ
by country
• An understanding helps you make better
career decisions
• An understanding helps you decide what
government policies to support
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International Business:
Operations and Influences
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Forces Driving Globalization
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What’s Wrong with Globalization?
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Why Companies Engage in
International Business?
• To Expand Sales: pursuing international sales
increases the potential market and potential
profits
• To Acquire Resources: may give companies
lower costs, new and better products,
additional operating knowledge
• To Diversify or Reduce Risks: international
operations may reduce operating risk by
smoothing sales and profits, preventing
competitors from gaining advantage
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Modes of Operations in International
Business
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Modes of Operations in International Business
• Investments: Foreign investment means ownership of foreign
property in exchange for financial return, such as interest and
dividends. It is found in two forms:
1) Direct Investment (FDI): It gives the investor a controlling interest
in a foreign company. Ex. FDI.
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Multinational Enterprises
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Difference Between International and
Domestic Business
Foreign conditions often dictate a more
suitable method, and the operating modes
used for international business differ from
those used on a domestic level.
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Physical and Social Factors Affecting
International Business Operations
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Competitive Factors Affecting
International Business
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Competitive Factors Affecting
International Business
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Future of International Business and
Globalization
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