IBUS1101 Lecture Notes - Lecture 1: Austrade, Portfolio Investment, United Nations Conference On Trade And Development
24 Jun 2018
School
Department
Course
Professor
Additional resources:
- World bank
- Unctad
- Bbc
- Austrade
- Globaledge
Key concepts:
- IB includes all value-adding activities:
- Sourcing
- Manufacturing
- Marketing performed in international location
- International trade and investment:
- Products
- Raw materials
- Services
- Capital
- Technology
- Know-how
- Labour
- Firms internationalise:
- Exporting
- Foreign direct investment including mergers and acquisitions
- International trade
- Exchange of products and services across national borders -> through exporting
and importing
- Exporting
- Sale of products or services to customers located abroad, from a base in the
home country or a third country
- Importing or global sourcing
- Procurement of products or services from suppliers located abroad for
consumption
International investment:
Transfer of assets to another country or the acquisition of assets in that country -? Foreign
direct investment
International portfolio investment:
Passive ownership of foreign securities such as stocks and bonds, in order to generate financial
returns
IB Risks:
Cross-cultural risk:
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Exchange of products and services across national borders -> through exporting and importing. Sale of products or services to customers located abroad, from a base in the home country or a third country. Procurement of products or services from suppliers located abroad for consumption. Passive ownership of foreign securities such as stocks and bonds, in order to generate financial returns. Eg mexican = friendly and emphasise social relations. Government intervention, protectionism and barriers to trade and investment. Lack of legal safeguards for intellectual property rights. Eg us imposes tariffs on imports of sugar and now steel/ aluminium. Eg russia often requires paying bribes to government officials. Rate fluctuations will adversely affect the value of the firm"s assets and liabilities. Income, sales, and other taxes vary widely worldwide, with implications for company performance and profitability. High inflation complicated business planning, and the pricing of inputs and finished goods. Risks always present - need to be managed.
