国际商务的环境Chapter-5-Economic-environment-facing-international-business-PPT课件.ppt

1、Chapter 5Economic Environment for International Business Learning objectivesFHaving read this chapter you should be able to:FBe aware of the effect of world economic crisis on international businessFIdentify the trends in world trade FExplore the measurement of international tradeFlearn the strategi

2、es for successfully developing an overseas marketWarm-up:The ongoing financial crisisFStarting from the bankruptcy of Leman Brothers in America on 5th September.FThe direct inducement:the subprime mortgage crisis taking place at Wall Street since August.The subprime mortgageFIt is a type of mortgage

3、 that is normally made out to borrowers with lower credit ratings.FLending institutions often charge interest on subprime mortgages at a rate that is higher than a conventional level in order to compensate themselves for carrying more risk.American housing bubbleFPrior to 2019 the soaring housing pr

4、ice FRemortgaging real estate,purchased on loan,transformed into a credit cardFThe real estate price has dramatically declined ever since 2019,resulting in the immediate rupture of chain of payment on loanFThe bursting of American housing bubble spread to the whole domestic financial industry,then w

5、orldwide.The ongoing financial crisisF“fake prosperity”FAmerican financial system:Omnipotent(全能的,无所不能的)FAs to the current worldwide recession American government has to bear most of the responsibility in the aspects of indulging loose supervision and turning a blind eye to the ineligible loan.FAmeri

6、can consumption culture crisisText:The International Economic EnvironmentFThe trend towards a global business environmentFFirms reasons for going globalFMeasuring international tradeFMarket entry strategiesIntroduction FMany business organizations recognize that their growth can continue only if the

7、y exploit overseas markets.However,entering overseas markets can be extremely risky.FTherefore,a good understanding of the international economic environment can be of good help.FE.g.McDonalds initial failure in the UK market in the 1970s.international economic environmentsFTrade patterns and strate

8、gies throughout the world change in response to changes in the international economic environments.FE.g.during the first years of the twenty-first century,the rising GDP per capita of China has resulted in Chinese consumers purchasing increasing numbers of overseas holidays.Measuring international t

9、radeFbalance of payment:The difference between what a country receives from overseas and the amount it spends overseas.(国际收支平衡)Fcurrent account(经常帐户)transactions；the purchase and sale of goods and services current accountFcapital account(资本帐户资本帐户)transactions；the acquisition and disposal of assets a

10、nd liabilities abroad Current account&capital account FThe current account is generally further divided into:A visible trade balance,including transactions in manufactured goods,raw materials and fuel products;An invisible trade balance,made up of servicesFThe capital account records outward and inw

11、ard flows of capital for investment purposes.It includes payments made for long-term investment in tangible assets(有形资产).and intangible assets(无形资产),and short-term movements of money between traders in the money markets.Market entry strategiesFA companys market entry strategy should aim to balance b

12、etween a potential opportunity and a risk to an organization.FThe least risky method of developing a foreign market is to supply that market from a domestic base.FMarket entry risk reduction strategies also have a time dimension.E.g.McDonalds and Burger King in the turbulent business environment of

13、Eastern Europe in the late 1980s,A range of entry possibilities FExporting:where economies of scale in production are high and transport costs are low FDirect investment in a foreign subsidiary:maximum control,but exposure to a high level of risk FGlobal e-commerce:the Internet has offered new oppor

14、tunities FLicensing/franchising:following a product formulation closely and to maintaining consistent standards of quality and grand image.FJoint ventures:a partnership between a domestic company and a foreign company or government Joint ventures Fthe initial capital requirement threshold is high,re

15、sulting in a high level of riskFoverseas governments restrict the rights of foreign companies to set up business on their own account,making a partnership with a local company possibly involving a minority shareholding the only means of entering the marketFthere may be significant barriers to entry

16、which a company already based in the foreign market could help to overcome Ftaxation of company profits may favor a joint venture rather than owning an overseas subsidiary outright.Key terms Fculture convergence 文化趋同文化趋同Fmarkets segments 市场细分市场细分FGDP per capita 人均国内生产总值人均国内生产总值FBalance of Payment 国际

17、收支平衡表国际收支平衡表Fvisible trade 有形贸易有形贸易Finvisible trade 无形贸易无形贸易Fcurrent account 经常帐户经常帐户Fcapital account 资本帐户资本帐户Fjoint venture 合资企业合资企业Fmarket entry strategy 市场进入战略市场进入战略Summary of key pointsFThere are various reasons for the trend of globalization of the business environment.F“Pull”factors for compan

18、ies going global are to seek growth and gain access to new markets,to achieve economies of scale.F“Push”factors:the nature of a firms product requires the firm to go global,some firms whose domestic market is too small to allow economies of scaleFA chief method of measuring international trade is on

19、e countrys balance of payment,consisting of current account and capital account.FWhen entering a foreign market,companies choose various strategies to reduce market entry risk.Comprehension questionsFSummarize the“pull”factors and“push”factors of firms reason for going global.FWhat are the key metho

20、ds of measuring international trade?FWhat are the main components of the BOP(balance of payment)?FIllustrate the main market entry strategies.FGive at least three reasons for the globalization of business environment.Apply your understandingFWhat the difference between the merchandise trade balance

21、and the current account balance?FWhy must a countrys balance of payments always be balanced in theory?FFind a multinational company having business with China and identify its market entry strategies.Essay questions FSuppose the well-known UK hotel group Le Ritz is to develop a new location in India

22、,what cultural differences might be encountered and cause problems?Case study:Chinese Firms Incentives for Foreign AcquisitionsFCase-related questions:F1.What do you think of the authors argument?F2.How do you evaluate the opportunities and risks in doing business with China?F3.Whats your suggestion

23、 for foreign companies doing business with China?Point-CounterpointFHelping Developing Nations:Aid or Trade?Point FAid is better than trade.FMany experts believe that the development of the less developed countries is dependent on aid.FAids are mainly used to finance infrastructure projects and alle

24、viate human suffering directly.FAid also may be preferable to trade because it creates fewer political problems in the donors country Counterpoint FTrade is preferable to aid.FTrade provides jobs for residents of less developed countries.The wages generates demand for local businesses and employment

25、 opportunities for local residents.FMore important,as domestic firms expand their exports,their managers and employees learn new skills and techniques for producing and marketing goods.FFailures of aid programs Web alertFwto.org/FWorld Trade Organization,provides information on international trade d

26、evelopments,statistics,WTO documents and policies.Fimf.org/FInternational Monetary Fund,which contains IMF news,publications and international economic information.Fduke.edu/charvey/Country_risk/couindex.htmFCountry Risk Analysis,which is a rich source of historical data about world trading markets.

27、It discusses economic,financial and political events which impact on international trade.Foecd.org/std/serint.htmFOrganization for Economic Co-operation and Development(OECD):International Trade.The OECDs database on international trade shows the value of each member countrys exports and imports of

28、goods and services by type.FftFFinancial Times.The newspapers archive includes country reports Further readingFWorld Trade Organization,Annual Report,published annuallyFWorld Trade Organization,Trade Policy Review(serial)FMockler,R.J.(2000)Multinational Strategic Alliances,Chichester,John WileyFKeeg

29、an,W.J.(2019)Global Marketing,FT Prentice HallAssignmentFBecause every system displays a tendency toward individual-or group-oriented economic values,some western scholars organize systems along a continuum that characterizes them as central planned,mixed,or market economies.Read articles on the related topic and write a brief summary of the basic and general features of them,taking the development of Chinese economy into your consideration.Thank You!