Why companies engage in international business; Globalization;

1. International Business
Presented By:
Uttam k Sarkar
BBA LM
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2. Extending 6,437 kilometers, the Silk Road gets its name from the
lucrative Chinese silk trade which was carried out along its length.
It started to operate at around 110BC, under the rule of HanDynasty.
Trade on the Silk Road was a significant factor in the development
of the civilizations of China, the Indian Sub-continent,
Persia,Europe and Arabia.
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3. International Business and the
Roman Empire
 Pax Romana, or Roman Peace ensured that
merchants were able to travel safely and rapidly.
 Common coinage simplified business transactions.
 Rome developed a systematic law, central market
locations, and an effective communication system; all
of which enabled international business to flourish in
the Roman Empire.
 The growth of the Roman Empire occurred mainly
through the linkages of business
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4. United States: A Global Leader
 The United States has developed a world
leadership position due to:
 its use of market-based transactions in the Western
world
 a broad flow of ideas, goods, and services across
national borders
 an encouragement of international communication
and transportation
 Pax Americana, an American sponsored and
enforced peace
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5. Types of International Business
Export-import trade
Foreign direct
investment
Licensing
Franchising
Management contracts
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6.  More and more firms around the world are
going global, including:
 Manufacturing firms-Ex: Coca-cola
 Service companies i.e. (banks-Ex: HSBC,
insurance-Ex: MetLife, Aviva,
consulting firms-Ex: Accenture,IBM)
 Art, film, and music companies-Ex: Sony Music
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7. Why companies engage in
International business ?
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8.  International business:
 causes the flow of ideas, services, and capital across the
world
 permits the acquisition of a wider variety of inputs
 Generates Economies of Scale
 Insulates seasonal domestic sales by finding new foreign
markets
 Reduces dependence on existing markets
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9. 
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Tax advantages
facilitates the mobility of labor, capital, and technology
provides challenging business opportunities
reallocates resources, makes preferential choices, and
shifts activities to a global level
High sales-Global market
Diversify sources of sales & supplies
Minimize competitive risk
Led to Globalization
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10. 10

11. List of Indian Companies going
Global, & Growing
1. Indian car “TATA INDICA” is penetrating into European market, by
establishing strategic marketing arrangement with ROVER.
2. TATA’s have purchased the Korean company "Daewoo motors" and
consolidating its position in
Korea and China
.
3. Tata Iron & Steel has become 5th largest steel company of the world by
acquiring the European major "Corus" for a premium prize.
4. Lakshmi Mittal, world's fourth richest person and NRI had acquired a
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12. Indian companies ..contd..
5. Ranbaxy Labs, India's top pharmaceutical company, earns 76% of its
revenues from outside India. It is rated the ninth biggest generic company of
the world with manufacturing locations situated across the globe.
7. Videocon, the TV manufacturing company of India, had bought the world
famous TV company Thompson in the countries of China, Italy, Poland,
Mexico etc.
10. ONGC & IOC have purchased oil wells in the countries of Africa &
Dubai.
11. Asian Paints have manufacturing plants in 24 countries. Asian Paints is
considered as the leader in segment of selling paints.
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13. JAGUAR and LAND ROVER
thrives under TATA.
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14. Expansion of International Trade
 In the past 30 years, the volume of international
trade has expanded from $200 billion to over $7.5
trillion.
 The sales of foreign affiliates of multinational
corporations are now twice as high as global
exports.
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15. Global Links Today
 International business has created a network of
global links that bind countries, institutions, and
individuals with trade, financial markets, technology,
and living standards.
 For example, a reduction in coffee production in Brazil
would affect individuals and economies worldwide.
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16. Recent Changes in International
Business
 Total world trade declined dramatically after
2000, but is again on the rise.
 The rate of globalization is accelerating.
 Regionalization is taking place, resulting in
trading blocs.
 The participation of countries in world trade is
shifting.
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17. The Composition of Trade
 Between the 1960’s and the 1990’s the importance
of manufactured goods increased while the role of
primary commodities (i.e. rubber or mining) had
decreased.
 More recently, there has been a shift of
manufacturing industries to countries with
emerging economies.
 There has been an increase in the area of service
trades in recent years.
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18. Conclusion
 With only domestic resources being
available , each country could produce only
limited no. of Products.
 Shortages would be prevalent
 Global trades allows for enormous variety of
resources-from Persian Gulf oil, Brazilian
Coffee to Asian Labours.
 Unemployment would have been more
common.
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19. Sources:
WEBSITES:
BOOKS:
www.wikipedia.org
International Business, by
czinkota,Ronkeinen,Moffett
www.ibusinessarticles.blogspot.in
Global Business Today, by
Charles W.L. Hill
www.economictimes.indiatimes.com
www.icmab.net
www.managementstudyguide.com
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20. Thank You
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