Pfizer Financial Statement 2013

17/09/2013

Lecture 1: International Business and Globalisation

Dr Lim Ngat Chin, Eunice, PhD
Room ELG02, Block E (NEW WING –LOWER GROUND)
[e-mail]
Consultation hours: Mon 1300-1500; Tues 1030-1230;
Fri 0900-1100 or appointment by email

Session 1 content (IB)
 What is international business?

 What are the reasons for international business growth?
 What are the basic forms of international business activity?
 Summary

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What is international business?

'It's not surprising. The production department is in Spain, the warehouse is in Korea, the accounting division is in Bolivia, the board of directors is in Canada.'

'I don't call expanding to New Jersey thinking globally.' 3

What is international business?

"Nice to meet you. You must excuse me I'm still suffering from jet lag."

Multi-national employee: 'What time is it!?
Where am I!?'
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International business …
 Refers to those business activities that involve the crossing of national boundaries. These include:
 Import and export of commodities and manufactured goods;
 Investment of capital in manufacturing, extractive, agricultural, transportation

and communications assets;
 Supervision of employees in different countries;
 Investment in international services, e.g. banking, education, advertising, tourism, retailing and construction; and
 Transactions involving copyrights, patents, trademarks and process technology.
These activities take place between individuals, firms, and other public and private bodies. The level of risk is higher in international business than those in domestic transactions. Why?
Source: Taggart, J H and McDermott, M C (1993) The Essence of International Business, Prentice Hall, Englewood Cliffs, NJ.

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Domestic vs. international business.
Domestic
Business
Transactions occurring within the boundaries of a single nation

International
Business