Int. Business at ZHAW - Zürcher Hochschule für Angewandte Wissenschaften

1. Growth opportunities through market diversification 
2. Higher margins and profits
3. New ideas about products, services and business methods
4. Co -location with international consumers
5. Proximity to supply sources, benefit from global sources advantages, or gain flexibility in product sourcing 
6. Access to lower -cost or better -value factors of production 
7. To develop economies of scale in sourcing, production, marketing and R&D
8. Effectively compete internationally or thwart the growth of competition in the home market
9. Invest in a potentially rewarding relationship with a foreign partner

• Performance of trade and investment activities across national borders
• Exchange of physical and intellectual assets (products, services, capital, technology, know-how and labour)
• Is in contact with countries that differ in terms of (systems, economic…)
• Faces 4 types of risks (cross-cultural, commercial, currency, country)

International portfolio investment

Passive ownership of foreign securities (stocks, bonds) gain financial returns. Shortterm

interest in ownership of these assets

Foreign direct investment (FDI)

Internationalization strategy, firm establish a physical presence (acquisition of

productive assets land, plant, equipment, capital and technology – long-term

Cross-cultural, commercial, currency, country

• MNE = Multinational Enterprises headquartered in one country, operations in other countries
• M(I)E= Small & Medium (International) Enterprises, Smaller than MNE, international presence
• Born Global Firms, entrepreneurial firms undertake substantial intern. B.
• NGO = Non-Government Organization (social issues, education, research)

Globalisation

Refers international transactions, cooperation, and competition among firms.

It is a macro-trend

• Global economy 
• Infrastructure, telecommunications, logistics, visa obligations, regulaitons, liberalization of investment 
• International Monetary Fund (IMF)
• World Bank
• WTO

Internationalization

Exchange of products and services across national borders, through exporting and

importing by indivdual firms (investment, increase volume) 

• Enterprise activity, individuals 
• Cultural tastes + preferences, local traditions, sourcing, producing, selling materials
• EU
• Asia Pacific Economic Cooperation (APEC)

• Developed (West, Canada, USA)
• Developing (Africa, Asien, Mexico, South America)
• Transition economies (Übergang, Albanien, Bulgarien, Kroatien, Tschechien)

1. Worldwide reduction of barriers to trade and investment

2. Market liberalization and adaption of free market

3. Industrialization, economic development, and modernization

4. Integration of world financial markets

5. Advantages in technology

1. Contagion: Rapid spread of financial crises between countries

2. Loss of National Sovereignty: Brexit

3. Offshoring: Job loss in developed countries

4. Reshoring: Return manufacturing and services back to home country

5. Effect on the poor: Increased global inequality, low wages, exploiting workers,

employing child labour

6. Effect on national culture: Homogenization, western culture as status quo,

unfamiliar products, global brands, no differentiator (Unterscheidungsmerk.)

7. Conventional business models easily disrupted (zerstörrt)

Information Technology

Date in cloud (access everywhere)

IT benefits smaller firms, timely & cost-effective, competitive advantage

Communication

Internet in global marketplaces, social media, communicate directly

Manufacturing (Herstellung)

Computer-aided design (CAD), adapt products to individual foreign markets

• Subsidiser, Competitor, Customer, supplier
• Establishes the legal framework, regulator and deregulator
• Public expenditure + taxation,
• International negotiator (Verhandlungsführer) 
• internal and external security, arbitrator (Schiedsrichter)

Instruments legal 

Laws, regulations, rules (ensure order commercial activities, Resolve disputes, Protect intellectual property , tax economic output

Rule of law 

All citizens (Bürgern) equally, issued via government authorities (veröffentlicht)

• Rules are clear
• Publicity disclosed (öffentlich)
• Fairly enforced
• Respected by individuals/organizations, government

• Packing techniques
• production techniques
• Placement
• Treatment workers 
• Terms & Conditions trade
• Competition
• Ownership of assets
• Financial reporting (IFRS)