IBUS1101 Lecture Notes - Lecture 1: Haier, Wechat, International Trade
27 Jul 2018
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Document Summary
Globalisation international transactions, cooperation, competition amongst firms: globalisation of markets ongoing economic integration + growing interdependency of countries worldwide. Internationalisation the tendency of companies to deepen their international business activities systematically. International business (cross-border business) firms" performance of trade and investment activities across national borders. Foreign market entry strategy: gives investors partial/full ownership of a productive enterprise (typically dedicated to manufacturing, marketing or management activities) Long term: retain partial/complete ownership of acquired assets + establish new legal business entity in host country (subject to regulations of host government: international portfolio investment, passive ownership of foreign securities (stocks/bonds) to generate financial returns. Entrepot economies (hk, singapore, the netherlands) import large volume of products; some processed into higher value-added products, some re-exported to other destinations: e. g. Singapore = major entrepot for petroleum products received from the middle east (exported to china + other asian destinations: collaboration among nations through organisations wto world trade.
