IMPORT & EXPORT MANAGEMENT
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Transcript IMPORT & EXPORT MANAGEMENT
INTERNATIONAL TRADE
&
COMPETITIVENESS
7/20/2015
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Competition
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
Globalization of Markets
– Removing Trade Barriers
General Agreements on Tariffs and Trade
– Established in 1947
– Membership grow from 19 to 120 Nations
– Tariff Reduction was spread in eight round
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
Globalization of Markets
– Convergence of Consumers taste & Preferences
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
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
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
Benefits to Nation
– Rapid Economic Development
– Employment opportunities
– Increase in National Wealth
Benefits to Firms
– Cost Reduction
– Economic Scale of Production
– Improve Enterprise Value
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National Differences
Political Systems
– Democracy
– Communism
– Socialism
Economic Systems
– Market Economy
– Command Economy
– Mixed Economy
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National Differences
Legal Systems
– Property Rights
– The Protection of Intellectual Property
– Product Safely and Product Liability
Economic Development
– Developed Economy
– Under Developed Economy
– Developing Economy
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National Differences
Culture Difference
– Social Structure
– Language
– Religion
– Education
– Political Philosophy
– Economic Philosophy
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Ethics in International Trade
Employments Practices
Human Rights
Corruptions
Environmental pollutions
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International Trade Theory
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
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
Implication for Manager
– Location
– First Mover Advantage
– Government Policy
Case Study
– IBM
– LOGITECH
– ArcelorMittal Steel
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Regional Economic Integration
Political Union
Economic Union
Common Markets
Custom Union
Case Study
European Union
SAARC
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The Foreign Exchange Market
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
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
International Strategy
Localization Strategy
Transnational Strategy
Global Standardization Strategy
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Strategy of International Trade
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
Entry Strategy
– Which Foreign Markets
– Timing of Entry
– Scale of Entry
Modes of Entry
– Exporting
– Turnkey Projects, & Greenfield Venture
– Licensing, Franchising, & Joint Ventures
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Strategy of International Trade
Modes of Entry
– Acquisition & Mergers
– Strategic Alliances
Core Competencies & Entry Mode
– Technical Know-how
– Management Know-how
– Human Resources Advantage
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Other Issues
Global Research & Development
Human Resources Management
International Financial Management
International Accounting Standards
International Logistics
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