Transcript IMPORT & EXPORT MANAGEMENT

INTERNATIONAL TRADE
&
COMPETITIVENESS
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Competition
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Try to win
Success or Failure
Success means Powerful, Efficient
Powerful is a comparative word
Depends on Time, Occasion, Product, Place
Continuous Process
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International Trade
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Globalization of Markets
– Removing Trade Barriers
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General Agreements on Tariffs and Trade
– Established in 1947
– Membership grow from 19 to 120 Nations
– Tariff Reduction was spread in eight round
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World Trade Organization
– Establish in 1995 under the Uruguay Round
– Membership grow to 148 members by 2005
– General Agreement on Trade in Services
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International Trade
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Globalization of Markets
– Convergence of Consumers taste & Preferences
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Creating basic global market
– Example Coca-Cola Soft drinks, Visa Cards, Sony Play
Station Video Games, McDonald’s hamburgers
– Removing Geographical Barriers
 Communication Systems
 Internet
 Development of Ports & Sea Routes
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International Trade
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Globalization of Production
– Advantage in Labour Cost
– Advantage in Capital Cost
– Advantage in Materials Cost
– Innovation
– Technology & Research and Development
– Human Resources
– Government Policies & Incentives
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International Trade
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Globalization of Production (Examples)
– IBM Think Pad X31laptop computer
 Products Design in USA
 Case, keyboard and hard disk made in Thailand
 Display screen and memory in South Korea
 Built-in wireless card in Malaysia
 Micro processor and sales in USA
 Assembly in Mexico
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International Trade
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Benefits to Nation
– Rapid Economic Development
– Employment opportunities
– Increase in National Wealth
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Benefits to Firms
– Cost Reduction
– Economic Scale of Production
– Improve Enterprise Value
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National Differences
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Political Systems
– Democracy
– Communism
– Socialism
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Economic Systems
– Market Economy
– Command Economy
– Mixed Economy
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National Differences
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Legal Systems
– Property Rights
– The Protection of Intellectual Property
– Product Safely and Product Liability
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Economic Development
– Developed Economy
– Under Developed Economy
– Developing Economy
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National Differences
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Culture Difference
– Social Structure
– Language
– Religion
– Education
– Political Philosophy
– Economic Philosophy
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Ethics in International Trade
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Employments Practices
 Human Rights
 Corruptions
 Environmental pollutions
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International Trade Theory
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Mercantilism
 The Theory of Absolute Advantage
 The Theory of Comparative Advantage
 The Heckscher-Ohlin theory of factor
endowments
 The Product Life Cycle Theory
 New Trade theory
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International Trade Theory
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Porter’s Theory of National Competitive
Advantage
– Factor endowments
– Domestic Demand Conditions
– Relating & Supporting Industries
– Firm Strategy, Structure, and Rivalry
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International Trade Theory
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Implication for Manager
– Location
– First Mover Advantage
– Government Policy
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Case Study
– IBM
– LOGITECH
– ArcelorMittal Steel
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Regional Economic Integration
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Political Union
 Economic Union
 Common Markets
 Custom Union
Case Study
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European Union
 SAARC
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The Foreign Exchange Market
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Function of Foreign Exchange Market
 Currency Conversion
 Foreign Exchange Risk
 Exchange Rate Determination
– Interest Rate and Inflation
– Foreign Exchange Reserve
– Investor Psychology
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International Monetary System
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Gold Standard
 Fixed Exchange Rate System
 Pegged Exchange Rate System
 Floating Exchange Rate System
 Convertibility
– Partial
– Full
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Strategy of International Trade
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International Strategy
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Localization Strategy
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Transnational Strategy
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Global Standardization Strategy
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Strategy of International Trade
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Strategy Requirement
– Value Creation
– Cost Reduction Pressure
– Local Responsiveness
– Economic Scale of Production
– Leveraging Product & Competencies
– Creating a Value Chain
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Strategy of International Trade
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Entry Strategy
– Which Foreign Markets
– Timing of Entry
– Scale of Entry
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Modes of Entry
– Exporting
– Turnkey Projects, & Greenfield Venture
– Licensing, Franchising, & Joint Ventures
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Strategy of International Trade
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Modes of Entry
– Acquisition & Mergers
– Strategic Alliances
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Core Competencies & Entry Mode
– Technical Know-how
– Management Know-how
– Human Resources Advantage
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Other Issues
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Global Research & Development
 Human Resources Management
 International Financial Management
 International Accounting Standards
 International Logistics
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