International Business - IPMI International Business School

"Business transactions betweeen parties from more than one country"

Key Players

Large Companies from Wealthy Nations

Firms from Emerging Markets

Small & Medium-sized Enterprises (SMEs)

Multinational Enterprises (MNEs)

Born Global Firms

Reasons for Trade

Absolute Advantage

Comparative Advantage

Globalization

Trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies

Exporting

Importing

Licensing

Strategic Alliance

Joint Venture

Direct Investment

Risk

Cross-Cultural

Financial

Currency & Exchange Rates

Relative Inflation Rates

Relative Income

Govt. restrictions on flow of goods/services

Risk Perception

Relative Interest Rates

Govt. restrictions on capital flow

Commercial

Country

Political System

Totalitarianism

Command Economies

Socialism

Mixed Economies

Democracy

Market Economies

Legal System

Common Law

Civil Law

Religious Law

Mixed System

Government Intervention

Tariff

Non-tariff Trade Barrier

Quota

Investment Barrier

SWF vs FDI

Sovereign Wealth Fund (SWF)

Indonesia Investment Authority (INA)

Objective: To manage domestic assets for growth.

Foreign Direct Investment

Strategy in which the firm establishes a physical presence abroad by acquiring productive assets such as capital, technology, labor, land, plant, and equipment

Motives

Market Seeking

Asset/Resource Seeking

Efficiency Seeking

Selecting FDI Locations

Market

Human Resource

Infrastructural

Political and Governmental

Legal and Regulatory

Economic

Profit Retention

Theories of International Trade and Investment

Nation-level

Why Do Nations Trade?

Mercantilism

Absolute Advantage Principle

Comparative Advantage Principle

Factor Proportions Theory

International PLC Theory

New Trade Theory

Competitive Advantage

Competitive Advantage of Nations

Michael Porter's Diamond Model

National Industrial Policy

Firm-level

Why Do Firms Go Global?

Internationalization Process of Firm

Born Global and International Entrepreneurship

Competitive Advantage

Monopolistic Advantage Theory

Internalization theory

Dunning Eclectic's Paradigm

International Collaborative Ventures

Network and Relational Assets

Sustainability through ESG

Environmental

How the company deal with operation-affected environment

Social

How is the relationships between company and the stakeholders (consumer, supplier, etc)

Governance

How is the company being governed

Impact

Investment

Sustainability

Sustainability through Blue Economy

Business sustainability through continuous cycle process with radical resource productivity and zero waste

Cradle-to-cradle

Closed loop

Renewable energy

Reuse

Corporate Governance

Ethics

Relativism

Normativism

Corporate Social Responsibility

Sustainability

Sustainability Development Goal