PARAGON
Business & international business:
International Business is a specific that
engages in business among multiple
countries
International Trade Theory
Buy low, sell high
Why do nations trade what they do?
Is trade a good thing
Options for doing business
Exporting goods and services.
Giving license to produce goods in the host country.
Starting a joint venture with a company.
Opening a branch for producing & distributing goods in the host country.
Providing managerial services to companies in the host country.
Theories for International Business
ü Comparative advantage theory
ü Absolute advantage theory
ü Perfect & imperfect Market theory
Theory of Comparative Advantage
a) Origin of Comparative Theory
b) Allow firm to penetrate foreign market
c) Make efficient for particular goods and services
d) Example
Theory of Absolute Advantage
Main concept come from Adam Smith
Absolutely more productive than another entity in the production of a good
Example
Practical example of Absolute Advantage
Theory of Perfect & imperfect Market
Definition of perfect market
Definition of imperfect market
Specific characteristics of perfect market
a) Infinite buyers and sellers
b) Zero entry and exit barriers
c) Perfect factor mobility
d) Perfect information
e) Zero transaction costs
f) Homogeneous products
Theory of Product Cycle
A firm initially establish itself locally
expand into foreign markets in response to foreign demand
Benefits of PLC Theory
PLC model gives managers the ability to forecast product directions
The PLC model can also be used as an explanatory tool in facilitating an understanding of past and future sales progression.
The PLC model is advantages in planning long-term offensive marketing strategies.
Business & international business:
International Business is a specific that
engages in business among multiple
countries
International Trade Theory
Buy low, sell high
Why do nations trade what they do?
Is trade a good thing
Options for doing business
Exporting goods and services.
Giving license to produce goods in the host country.
Starting a joint venture with a company.
Opening a branch for producing & distributing goods in the host country.
Providing managerial services to companies in the host country.
Theories for International Business
ü Comparative advantage theory
ü Absolute advantage theory
ü Perfect & imperfect Market theory
Theory of Comparative Advantage
a) Origin of Comparative Theory
b) Allow firm to penetrate foreign market
c) Make efficient for particular goods and services
d) Example
Theory of Absolute Advantage
Main concept come from Adam Smith Absolutely more productive than another entity in the production of a good Example Practical example of Absolute Advantage
Theory of Perfect & imperfect Market
Definition of perfect market Definition of imperfect market Specific characteristics of perfect market
a) Infinite buyers and sellers
b) Zero entry and exit barriers
c) Perfect factor mobility
d) Perfect information
e) Zero transaction costs
f) Homogeneous products
Theory of Product Cycle
A firm initially establish itself locally expand into foreign markets in response to foreign demand Benefits of PLC Theory PLC model gives managers the ability to forecast product directions The PLC model can also be used as an explanatory tool in facilitating an understanding of past and future sales progression. The PLC model is advantages in planning long-term offensive marketing strategies.
No comments:
Post a Comment