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International Business Organizations

International Business Organizations. Section 3-3. Multinational Companies (MNC). Do business in several countries Home country Divisions or separate companies Host countries. MNC Strategies. Global Strategy. Multinational Strategy. Same product Same marketing strategy

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International Business Organizations

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  1. International Business Organizations Section 3-3

  2. Multinational Companies (MNC) • Do business in several countries • Home country • Divisions or separate companies • Host countries

  3. MNC Strategies Global Strategy Multinational Strategy • Same product • Same marketing strategy • Example: Coca-Cola • Each country is considered different • Adapts to the consumer • Customs • Tastes • Buying Habits

  4. Licensing • Selling the right to use an intangible property for a fee or royalty • Such as • Production process • Trademark • Brand Name • Example: Gerber Baby Food in Japan • Low Risk → Low Return

  5. Franchising • A company is set up to look and run like a parent company • What are some examples of franchises? • What are the benefits to a franchise? • Limited Risk → Limited Return

  6. Joint Venture • Agreement between two or more companies to share a business project • Why would this be used? • Share • Raw Materials • Shipping Facilities • Management Activities • Production Facilities • Ford and Mazda

  7. This Joint Venture Looks INTELliGEnt • What two companies are starting a joint venture? • What is the goal of the joint venture? • What are the two companies combining? • Is the joint venture a good idea? Why or why not?

  8. World Trade Organizations (WTO) • Promotes Trade • Settles trade disputes • Enforces free-trade agreements • Lowers tariffs • Eliminates quotas • Reduces barriers • Assists poor countries

  9. International Monetary Fund (IMF) • 150 member nations • Stabilizes world trade and exchange rates

  10. World Bank • Provides economic aid to less developed countries

  11. Pop Quiz • What are the three global entry methods? • What is a joint venture? • How much risk does a franchise have? • How many nations are part of the IMF? • List 3 things that the WTO does?

  12. Dlabay, Burrow and Eggland. Intro to Business 6e. Mason, OH: Thompson South-Western, 2006.

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