International Trade Practice
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Transcript International Trade Practice
International Business
For MBA Class, Grade 2001,
SWUFE
Teacher & P.P.Writer:
Associate-Prof. Shuai Jianlin
April 6, 2002 –
International Business
Part 1: Environment for International
Business
Part 2: Decision Making
Part 3: Aspects and Practice of
International Business
Part 1 Environment for
International Business
Chapter 1 Economical Description of the
World (Economic Map)
Chapter 8 More about Globalization
Chapter 2 Economic & Cultural
Foundation of the Western Market Economy
Chapter 3 Theory & Policy for International
Business (Trade & Investment)
Teacher’s Words
To Think Globally, to Act Locally.
1.1 Chapter 1 Economical
Description of the World
Bird-eye View,
or Tiger-eye View ?
1.1.1 Bird-eye View,
– World Economy
– Globalization (Oxford Analytica & Case )
– Regional Integration
Free Trade Area
Customs Union
Common Market
Economic Union
Complete Economic Integration
1.1.2 Tiger-eye View ?
– Regulatory Framework
International Law
WTO (& Official Sayings, Packages)
IMF
The World Bank
ADB
ICC
FIDIC
Case
US Meets the Challenge of Globalization
Refer to “the Written Papers” for Language Test
Keys to the Test
1.2 Chapter 2 Economic &
Cultural Foundation of the
Western Market Economy
1.2.1 Environment of Political & Economic
System of West Market Economy
1.2.2 Cultural Backdrop
1.2.3 A Few Useful Economic Analytical
Tools
1.2.1 Environment of Political &
Economic System of West Market
Economy
What business are we to do?
Property Rights
Government Ownership & Planning
Special Role of Money, Banking System &
the Central Bank
Foreign Trade & Investment
Attachment 1 to 1.2.1
The expanding horizon of the typical
Chinese enterprise:
– International Purchasing;
– International Finance;
– International Technology Transfer;
– International Production Partnerships;
– International Marketing
Attachment 2 to 1.2.1
Attributes of the Market Economy (cf. Centralized
Planned Economy)
– Well Defined & Well-protected Property Rights for
Individual;
– A Varying but Relatively Low Proportion of
Government Ownership Enterprises;
– A Special Role for Money as A Means of Payment & a
Standard of Deferred Payment;
– Foreign Trade & Investment Follow the Comparative
Advantage of a Country; Balance of Payment
Necessary for the Acceptance of its Currency
Convertibility;
Attachment 3 to 1.2.1
Attributes of the Centralized Planned
Economy:
– Refer to the Book in Chinese
1.2.2 Cultural Backdrop
Culture Shock
Understanding Cultural Differences
Customs Etiquette & Protocol
Non-verbal Communication
Cultural Landmines for Women
Religions & The Impacts on Business
Cross-cultural Marketing
Attachment 1 to 1.2.2
Customs Etiquette & Protocol
Attachment 2 to 1.2.2
Non-verbal Communication
– Gestures around the world
Attachment 3 to 1.2.2
Cultural Landmines for Women
Attachment 4 to 1.2.2
Religions & the Impacts on International Business
– Bible & Christianity ---what does the Root tell us?
– Alcoran (Gulan) & Islamism
Case: Platonic (唯心)& Realism(实在论)-- Premier Li
Peng’s visit with 5 million to President Assad with a cold face
//Barkley Hydro-power Project & Government Loan—My
money is mine; yours is also mine.
Case: Key Role of the VIP – “Beifang”, Liu Laosan &
Assad//SCMEC & Mr.Wali//Zhongxing Co.
Case: So many uncertainties– changing contract, promise; Visa
application at Jordan Embassy at Damascus, etc.
Case: Pious & Brave fighter for Muhanmurd---telling a lie?
– Buddhism
In Singapore, Vietnam, Laos, Nepal, etc.
Attachment 5 to 1.2.2
Cross-cultural Marketing
1.2.3 A Few Economic
Analytical Tools
Opportunity Costs
Marginal Analysis
Economic Incentive
Opportunity Cost in Roma Empire
(Roma Empire’s PPF)
X: Cars (Millions per
year);
Y: Grain (Billion of
bushels per year)
A: Opportunity Cost of
1 car is 2000 bushels of
grain.
B: opportunity cost of 1
car is 9000 bushels of
grain.
1.3 Chapter 3 Theory &
Policy for International
Business (Trade & Investment)
1.3.1 International Trade Theory
1.3.2 Foreign Direct Investment (FDI)
1.3.3 Government Influence on Trade and
Investment
1.3.4 China’s Comparative Advantage (for selfstudy)
1.3.5 Implications---to trade, or to invest? That’s
a question.
1.3.1 International Trade
Theory
Comparative Advantage Theory
Survey of International Trade
Benefits of International Trade
Barrier to International Trade & Causes to
FDI (Government Influence)
Case Study
Attachment to 1.3.1
Benefits of International Trade
Flow of Goods
Balance of Trade and Balance of Payments
Attachment to 1.3.1
Barrier to International Trade
& Causes to FDI
Culture
Barrier
Economic Barrier
Artificial Barrier
1.3.2 Foreign Direct
Investment / International
Direct Investment
What’s that? FDI .
The Relationship of Trade & Factor Mobility
Motivations for Handling International Business
through Direct Investment
Market-Expansion: Investments vs. Trade
Resource-Acquisition Investments
Diversification-Oriented Investments
Competitive Risk Minimization
Political Motives
Buy vs. Build Decision
1.3.21 What’s that? FDI.
The Core of FDI: Control 控制--FDI的核心
The Concern about Control 对于控制的观
点
Methods of Acquisition 收购的途径
1.3.22 The Relationship of
Trade and Factor Mobility
贸易与要素流动的关系
The Trade and Factor Mobility Theory贸易
理论与要素流动理论
Substitution 替代
Complementarities of Trade and Direct
Investment 贸易与直接投资的互补行
1.3.23 Motivations for Handling
International Business through Direct
Investment
通过直接投资进行国际
商务的动机
To Expand Their Sales 扩大销售
To Acquire Resources 获取资源
To Diversify Their Sources of Sales & Supplies
销售或供给的多样化
To Minimize Competitive Risk 竞争风险的最小
化
To Attain Political Advantage 获取政治优势
1.3.24 Market-Expansion:
Investments vs. Trade
Attachment to 1.3.24
Trade Barrier Causes Flow of Capital;
Capital Flow Barrier Causes Trade
Transportation
Lack of Domestic Capacity
Scale Economy
Trade Restriction
Country-of-Origin Effects
Nationalism
Product Image
Delivery Risk
Changes in Comparative Costs
1.3.25 Resource-Acquisition
Investments 为了获取资源的投资
Vertical Integration 垂直一体化
Rationalized Production 合理化生产
Access to Production Factors 获取生产要素
The Product Life Cycle Theory 产品生产周
期理论
Government Investment Incentives 政府对投
资的刺激
1.3.26 Diversification-Oriented
Investments 以多元化为导向的投资
Diversification
Cyclical Swings
1.3.27 Competitive Risk
Minimization 竞争风险最小化
Following Customers 追随顾客
Preventing Competitor’s Advantage 阻止竞争
者的优势
1.3.28 Political Motives
1.3.29 Buy vs. Build Decision
购买—创建决策
Reasons for Buying
Reasons for Building