Katedra řízení podniku a podnikové ekonomiky INTERNATIONAL BUSINESS [ B_IB ]

1. Katedra řízení podniku a podnikové ekonomiky INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. 19063@mail.vsfs.cz

2. INTERNATIONAL BUSINESS • KS = 3 guided consultations (winter term 2008) • Framework of IB, it’s importance in national economy • Reasons for exchange • International business activities • Entering foreign markets, entry modes (characteristics, risks, sources fixture) • Internationalisation • Role of culture, cultural differences and their impact on mastering business • International trade barriers • Competition in the international arena • Within each consultation: practical discussions on topical economical issues INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

3. CREDIT conditions B_IB KS = 3 guided consultations (winter term 2008) • CONDITIONS: • PRESENCE at IB lectures • active PARTICIPATION – communication, reading and discussing topical economic issues • short PRESENTATION - preparation at home - 5 min. presentation on economical topical issue INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

4. Lecture content • Introduction of each participant • International business • Framework of IB, it’s importance in national economy • Reasons for exchange • International business activities • Entering foreign markets, entry modes (characteristics, risks, sources fixture) INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

5. INTERNATIONAL BUSINESS / TRADE • What is international business? • = exchange of goods and services undertaken by business bodies across the national border with the foreign business bodies INT business = EXCHANGE across border INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

6. INTERNATIONAL BUSINESS • Reasons for participation in IB? • = the fact that almost no country is able to SATISFY its’ needs by own goods and base materials • countries concentrate on manufacturing products which are effective under given conditions (= theory of comparative advantage) • Free economy • =stage of involvement in the international trade INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

7. IB importance + influences • FREE TRADE (international exchange) • = is an aim of all the trade economies and consists in: • convertibility(possibility to exchange currency) • free price creation • economical and political barriers elimination (duties, quotas etc.) 1. Economical2. Political3. CUltural INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

8. International business - DISADVANTAGES Weak self-sufficiency (in case of war or political system change) Dependence (the smaller and econ.developed country => the more important IB is for the country) INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

9. IB INDICATORS[basic] • BALANCE OF TRADE • = review of export & import volume in certain period of timeA) ACTIVE = export > import B) PASSIVE = export < import • BALANCE OF PAYMENTS • = review of currency / exchange receipts and expendituresA) ACTIVE = payments abroad > receipts from abroad B) PASSIVE = payments abroad < receipts from abroad MEZINÁRODNÍ OBCHODNÍ VZTAHY [MOV] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

10. STRUCTURE of IB INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

11. Ways of controlling IB • PROTECTIONISM– state intervenes in IB- protects the inner market against foreign competition - supports own products at the foreign markets • LIBERALISM – state limits the interventions in IB- export & import without restrictions • currency convertibility enables access to foreign currency purchases for free trade / exchange INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

12. History of Czech IB • Before 2nd World War: orientation on western markets • Czechoslovakia =10th most industrially developed country with cooperation and trade relations in western countries • After 2nd WorldWar(communist period): CZ „manufactury“ of the communist bloc with over 70 % of export into these countries • 1989 fall of socialism: CZ’s IB shift to the western partners again (Questionable move today) • 2004 CZ joins EU: • Elimination of trade barriers (duties, quotas and other restrictions) • Solid business climate in CZ => inflow of FDI (often based on governmental INCENTIVES) MEZINÁRODNÍ OBCHODNÍ VZTAHY [MOV] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

13. CZ – joining EU • CZ member of EU since 1.5.2004 (in the wave of10 countries – the biggest enlargement in the EU history) • Further enlargement 1.1.08 (BG and RO) • Today 27 countries • Negotiations about another countries accession INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

14. Business Advantages & Disadvantages of Czech accession of EU • ADVANTAGES • duties elimination • free movement of goods / partly free mov.of labor • larger market (single market) • DISADVANTAGES • stronger competition • less freedom in some of state economical decisions INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

15. INTERNATIONALIZATION • - various research approaches • = kind of „DEVELOPING & evolutional“ process: 3 forms (acc. to the stage of involvement after expanzion) INT = cover for international operations 15. INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

16. Dimensions of INTERNACIONALIZATION 16. INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

17. MOTIVES for foreign expansion 17. INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

18. Entry modes & business activities in IB 18. INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

19. Import & Export INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

20. Contractual international business activities INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

21. INVESTMENT entry modes INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

22. Further IB operations INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

23. CULTURE DIFFERENCES • = impact of culture on relationship, employees approach to work, business management and negotiations • -> this impact is much > than differences coming out from: • race • sex • specialization [profession] • position 23. INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

24. CULTURE and it’s elements • Culture • = characteristic way of living • = based on ACQUIRED models of behaviour (i.e. not inborn) • Culture ELEMENTS • ABSTRACT (values, approaches, opinions, religion – from generation to generation) • MATERIAL (stage of development and types of: technology, structure of consumption in a country / society ) 24. INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

25. CULTURE – abstractelements - impact on exchange 25. INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

26. CULTURE – abstractelements - impact on exchange 26. INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

27. KEY terms • International exchange • Reasons for IB, advantages x disadvantages • Free trade • IB influences and IB indicators • History of Czech international business • Balance of trade, balance of payments • Liberalism, protectionism • Convertibility, trade barriers, free price creation • Structure of IB (territory, commodity) • Cyclical fluctuation / conjuncture • Incentives (FDI) • Entry modes (import, export, licence, franchise, alliance, JV, greenfield, acquisition) • Switch, clearing, barter INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

28. Thank you for your attention Ing. Pavla Břečková, Ph.D. 19063@mail.vsfs.cz INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz