CHAP1: INTRO TO IB ACTIVITIES

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CHAP1: INTRO TO IB ACTIVITIES by Mind Map: CHAP1: INTRO TO IB ACTIVITIES

1. licensing agreement - allows a firm in one country  to use all/some intellectual property of a firm in a second country in exchange for a royalty payment

2. To acquire resources and supplies

3. even small business become more active in IBE (buying/supplying components)

4. What is IB?

4.1. Buy&sell raw materials

4.2. Buy&sell finished products across boarders

4.3. operate factories in others countries to take advantage of local resources

4.4. offering service/consultation to foreign clients

4.5. Borrow money in 1 country to finance operations in 2nd country

5. Why study IB

5.1. Business skills and techniques

5.1.1. student certainly work for a company either foreign owned, domestically owned, domestically owned but affected by global economy

5.2. Future competitors

5.3. Cultural literacy (celik budaya)

5.3.1. enable to be conversant with the global economy & international marketplace

6. Globalization

6.1. Inexorable integration (integrasi tidak dapat disekat) of markets, nation-states and technologies in a way that enabling individuals, corporations and nation-states to reach around the world father, faster deeper, cheaper than before

7. International Business

7.1. mechanism to bring about globalization

8. Other Forms IB Activities

8.1. Franchising agreement - allows a firm in one country to use the brand names, logos and operating techniques of a firm  in a second country in exchange for a royalty payment

8.2. Management contracts - involve agreement in which a firm in one country agrees to operate facilities

8.3. Multi National Corporation (MNC) - used to identify firms with extensive involvement in international business

9. Strategies Imperatives (strategik penting) (Internal Motivation)

9.1. Leverage core competencies

9.2. To seek new markets

9.3. To better compete with rivals (pesaing)

10. Environmental causes of Globalization (External motivation)

10.1. Changes in the political environment

10.1.1. collapse trade barriers since WWII & establishment new trade agreements, promoted greater international trade &'investment.

10.1.2. refers to changes in Government policy (trade policies, Education policies, immigration policies

10.2. creation of international institutions to facilitate international business governance (If a country was given the responsibility to create policies for international trade, the outcome will be biased to that particular country’s needs)

10.2.1. institutions created

10.2.1.1. The GATT (General Agreement  on Tariffs and Trade)

10.2.1.1.1. Encouraging nations to lower their trade barriers, specifically Tariffs to accomodate cheaper cross border trade.

10.2.1.2. The WTO (World Trade Organization)

10.2.1.2.1. Responsible for policing the world trading system and making sure member nations adhere to rules laid down in trade treaties signed by WTO members  Promotes lower barriers to trade and investment

10.2.1.3. The IMF (International Monetary Fund)

10.2.1.3.1. to maintain order in international monetary systems

10.2.1.4. World Bank

10.2.1.4.1. to promote economic development

10.2.1.5. The UN (United Nations)

10.2.1.5.1. 1.Maintain International Peace and Security 2.Develop Friendly relations among nations 3.Cooperate in solving international problems and in promoting respect for human rights    4.a centre for harmonizing the actions of nations

10.3. Technological Changes

10.3.1. advancements in: Communications, Transportation and Information Processing.

10.3.2. Phones, faxes, e-mail, air travel, and a host of other technological changes have made international business easier, feasible, and Profitable than ever before.