University of Finance & Administration INTERNATIONAL BUSINESS [ N_IB ]

1. Universityof Finance & Administration INTERNATIONAL BUSINESS [N_IB] Ing. Pavla Břečková, Ph.D. pavla.breckova@vsfs.cz

2. INTERNATIONAL BUSINESS • Part-time course = 4 guided consultations á 90 mins. • INTERNATIONAL BUSINESS [IB], characteristics, indicators. • WORLD BUSINESS TERRITORIES, challenges, integration, main trading blocks [TRIAD, BRIC] • GLOBAL BUSINESS ENVIRONMENT. • EMERGING MARKETS, characteristics, features, selectedmarkets in detail • BRICand BRICS • Doing business in Asia • Foreign market analysis • PREDISPOSITIONS for working in IB, expatriation and HR in IB

3. COMPLETION terms N_IB • 4 lectures / guided consultations [GC] (per 90 mins) • Completion: credit • Completion CONDITIONS: • Active participation (presence) in GC min. 75% • Active involvement in the guided consultations • [active listening, discussing, reading, analyzing & interpreting of economic articles or case study results] • If unfulfilled => written TEST to prove the knowledge

4. LITERATURE SOURCES Povinná literatura / Mandatory reading: Charles W. L. Hill: Global Business Today, McGraw-Hill/Irwin, 7th edition, 2011 Doporučená literatura / Recommended reading: Allan Sitkin, Nick Bowen: International Business, January 2010. Stuart Wall, Dr. Bronwen Rees: International Business: A First Course, September 2009. Wild, J., Wild, K., Han, J.: International business: the challenges of globalization. 4th ed. – Pearson, Upper Saddle River, 2008. ISBN: 978-0-13-174743-6. Woods, M.: International business. Basingstoke, Palgrave, 2001. ISBN: 0-333-75979-6. Griffin, R.W., Pustay, M.W.: International business: a managerial perspective. 5th int. ed. - Upper Saddle River, Prentice Hall, 2007. ISBN: 0-13-233532-8

5. BRIC(S) BRIC • Brazil – Russia – • - India – China • [+ South Africa] • Free Trade Area • encompassing > 25% • of world’s land • 40% of world’s • Population (3 billion) • Among biggest& • fastest growing EM • (emerging markets) 5.

6. BRIC(S) Federative Republic of BRAZIL RUSSIAN Federation Republic of INDIA People’s Republic of CHINA South Africa (from 2010) = association of emerging national economies above = developing or newly industrialized countries, but they are distinguished by their large, fast-growing economies

7. BRIC(S) • BRIC= a grouping acronym that refers to Brazil, Russia, India, China, which are all deemed to be at a similar stage of newly advanced economic development (not a formal trading block till 2009). S = South Africa (from 2010) • acronym was coined by Jim O’Neill (Goldman Sachs) in 2001 • came into widespread use as a symbol of the shift in global economic power away from the developed G7 economies towards the developing world • it is estimated that BRIC economies will overtake G7 economies by 2027 • Prospect: India & China will become the world's dominant suppliers of manufactured goods and services, respectively, while Brazil and Russia will become similarly dominant as suppliers of raw materials.

8. HRM in IB • Human Resource Management [HRM] • = activities an organization conducts to use its human resources effectively • Strategic role of HRM is complex enough in DOMESTIC firm, but even morecomplex in IB– issues arising from: • *staffing, *management development, *performance evaluation & *compensation activities • Issues are complicated by profound differences between countries in: • LABOR markets – specifics, labor law, labor habits, productivity • CULTURE – elements influencing business and day-to-day work • LEGAL systems • Economic systems

9. Basic elements of Culture 9.

10. LEGAL systems

11. EXPATRIATION - REPATRIATION • EXPATRIATE manager • = a national of one country appointed to a management position in another country • career growth • experience • compensate • often overlooked problem: inclusion into comp.structure after REPATRIATION of the expat • Expatriate failure = premature return of an expatriate manager to the home country • - Reasons in multinational companies – next slide • = expatriate selection – one way to REDUCE expat failure is by improving selection procedures (within HRM)

12. EXPATRIATION failure reasons US multinationals: 1. Inability of spouse to adjust 2. Manager’s inability to adjust 3. Other family problems 4. Manager’s personal or emotional maturity 5. Inability to cope with larger overseas responsibilities JAPANESE multinationals: 1. Inability to cope with larger overseas responsibilities 2. Difficulties with new environment 3. Personal or emotional problems 4. Lack o technical competence 5. Inability of spouse to adjust • EUROPEAN multinationals: • Inability of spouse to adjust to new environment

13. INTERNATIONALIZATION – MICRO view 13.

14. Dimensions of INTERNACIONALIZATION 14. INTERNATIONAL BUSINESS [B_IB] Ing. Pavla Břečková, Ph.D. / 19063@mail.vsfs.cz

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

16. Basic business analysis 16.

17. SWOT českých firem

18. QUESTIONS to prove knowledge in IB – part 4 What is BRIC – BRICS? What is expatriation? What is repatriation? What issues are connected with expatriation most often? What are the main areas to deal with when expatriating? What is expatriate failure? What are the basic dimensions of internationalization? What operations COUNTERTRADE might cover? What are the basic business analyses?

19. INTERNATIONAL BUSINESS - BMCF / TM - winter term 2010 Thank you for your attention Ing. Pavla Břečková, Ph.D. pavla.breckova@vsfs.cz