Proactive (провоцирующие причины)

· PROFIT ADVANTAGE

· UNIQUE PRODUCTS

· TECHNOLOGY ADVANTAGE

· EXCLUSIVE INFORMATION

· MANAGERIAL COMMITMENT

· TAX BENEFIT

· ECONOMIC OF SCALE

REACTIVE (реагирующие причины)

• COMPETETIVE PRESSURE

• OVERPRODUCTION

• DECLINING DOMESTIC SALES

• EXCESS СAPASITY

• SATURATED DOMESTIC MARKETS

• PROXIMITY TO CUSTOMERS AND PORTS

 

Let's discuss the Global Prospective of business. It consists of three elements:

1) National business environment

Culture

Political and legal activities

Economy

Competitive environment which a company faces

2) International business environment

Consumers

Workers

Companies

Governments

Financial institutions

 

International business Management

This act involves balancing of firms' internal forces (strength and witnesses) with the external environment. International Business Management consists of looking at the particular internal forces in an organization:              

                -human resources

-organizational culture

-production methods

-particular characteristics of your economic enterprise

Questions:

1. Give the definition of International Business.

2. Give your own examples of International Business Activity.

3. Give the definition of Globalization.

4. What does the Globalization of markets mean?

5. What does the Globalization of production mean?

6. Enumerate the basic fundamental activities of a manager in multinational enterprise with four added conditions.

7. Why do companies engage in international operations?

8. What does National business environment consist of?

9. What does International business environment include?

10.  What does International business Management involve?

 

Session 1.

 

Test.

1. International Business is the study of _______of multinational enterprises.

a. working

b. inflations

c. the activities

d. development

 

2. The key activity of International Business is ______ of these multinational enterprises.

a. development

b. transactions

c. studies

d. implementation

 

3.Globalization is the implication that boundaries __________.

a. are disappeared

b. are disappearing

c. are being disappeared

d. disappears

 

4. _____ - establishment of The General Agreement on Tariffs and Trade (GATT).

a. 1994

b. the 1660

c. 1947

d. the mid 1990"s

 

5.       - GATT was modified in several ways to gain lower tariffs.

a. 1994

b. the 1660

c. 1947

d. the mid 1990"s

 

6. In              the US economy dominated the world.

a. 1994

b. t he 1660

c. 1947

d. the mid 1990"s

 

7.But by _________ the US share of output has been coming half.

a. 1994

b. 1947

c. the 1660

d. the mid 1990"s

 

8. When you are managing in multinational enterprise you must fulfill the basic fundamental activities of a manager with ______ added conditions.

a. 3

b.2

c. 4

d. 5

 

9. You must find ways to work within the limits _______ by government.

a. are imposed

b. imposed

c. are i mposing

d. imposing

 

10. The Global Prospective of businessconsists of _____elements.

a. 2

b. 1

c. 3

d. 4

 

11. International Business Management consists of looking at the particular___ forces in an organization.

a. external

b. internal

c. international

d. multinational

 

12. We             but mention a human side of multinational corporations.

 

a. can't

b. don't

c. mustn't

d. needn't

 

PART II.

 

Vocabulary:

 

to adjudicate – признавать, выносить приговор

unencumbering - необременительный

to encourage - поощрять

to retain - сохранять

Department Of Commerce - Министерство торговли

Chambers of Commerce - Торговая палата

significant expertise - существенная экспертиза(опыт)

county commission - комиссия (полномочия) графства (округа)

drawback - недостаток

heritage - наследие

recognize – призна(ва)ть, узна(в)ать

How does a company change itself to make it more attractive for business? There are two general ideas: you have to have pro business environment and you also need a significant amount of infrastructure. Some factors of infrastructure and pro business environment are beyond the control of local community to a great extent. For example:

- The system of law which exists. There must be a system of law which includes good property rights (contracts are to be honored, property rights are to be honored, courts must fairly and quickly adjudicate disputes and profit must be safeguarded (гарантированный)).

- Tax system must be fair and unencumbering.

There are series of ideas which other communities used to encourage business activity and which can be useful:

1.In many countries there are special organizations developed by local government that will showcase and encourage business. They try to attract new business and try to retain and support the business which exists. There are such organizations in Germany (Hans Devercrafl) in the USA (Departmental Commerce which aids business activity on an entrepreneurial basis: Local Chambers of Commerce coalitions of business people with some government support; State Agencies which help and support business on a local area.

2.There is a special program that is called First Work. This program was performed in Cincinnati Ohio. In Cincinnati there is a coalition between private and public entities to develop a work force and partner with business to place people. Thanks to this program there has been a 30 % increase in the number of employees in the past 5 years.

So business has accepted this and there was a tremendous economic expansion as a result of this program. The program is based on a very simple idea. Within this county they realized that 70% of their businesses employ fewer than 20 people. This is not unusual even in the international business there are a lot of small organizations with 20 or fewer people. When the organization is so small it is very difficult to find people with significant expertise and human resource skills. They don't have the expertise to locate, to select, to attract and to train employees they need. Therefore (поэтому) in 1997 The Chamber of Commerce in Cincinnati partnered (быть партнёром) with county commission of the area, the government officials developed this program. By this they would consult people in the area as they trained their skills and abilities and matched trained individuals to companies that needed those particular skills. It has been found that the retaining(сохранение) of employees through (посредством) this program has been 90 %. It is very high. It means that years after being hired into a company 90% of the people from this program are still with their employer. It's very low turnover rate.

Some other communities and the results they accomplished.

Flint Michigan where Kettering University is located a unique town but many of the problems are not unique to Flint they are experienced by many towns throughout the world. Flint has significant need to develop the economy within the area. It has certain problems but it also has some assets that can be built upon. Looking at Flint may help us analyze other communities.

The number one priority always should be to retain and to expand the business you have. That's the best and the easiest thing to do. It is very difficult in Flint because it's focused on one industry. Flint Michigan is the birth place of General Motors. It's very much of GM company town. This has been a drawback to Flint especially as the overcapacity in the automobile industry has seen. However Flint has got a number of assets that it could drop on (понизить) to maintain and even to grow its economy.

1.Geography is important

2.Good infrastructure (good transportation service)

3.A number of educational institutions

4.A heritage of economic activity

In Flint they have been fortuned to get some government support and we were able to develop Renaissance Zones particular zones within the Flint area that are given tax abatements (налоговые уменьшения) or investment credits. In Flint they don't have very good record of matching the way they develop people and their skills with the need if the industry in the area. They must examine it. They must look at what the economic needs are within the area, (more engineering technology, and more health care practitioners). They have to direct their schools to be offering more those programs and fewer that are not needed.

In addition, the community must have one vision, one plan, one direction that the entire community understands and supports and for that it needs a strong leadership (a mayor, a county commissioner etc.)

Spartanburg South Carolina has reached the astronomical growth in the location of enumerable multinational corporations. How did they do this? They promised companies they would provide the trained, skilled labor those companies needed. This gave them significant competitive advantage over other areas of the country.

Another town which got its success was Charleston. It recognized its importance as a port and built upon that. Now it's the 7th largest port in the US. The other aspect of Charleston is its police force. The city is known as a safe place for recreation and for business activities.

So, there are the number of ideas the towns can employ to try to improve their economic position and make them attractive to International Business. But the most important are airports and skills offered in the area.