We live in a world in which the volume of goods, services and investments crossing national borders has expanded faster than global production for the last half century. Over the past thirty years a fundamental shift has occurred in world trade: a wave of democracy has washed over the globe, tariff barriers have fallen dramatically, markets have opened, perceived distance has shrunk, cultures are merging and nations are banding together. Today the opportunities for the international business manager are greater than ever.
This course introduces the student to the field of international business. Once a firm crosses an international border it is in a new legal, political, cultural and competitive environment. International business management is concerned with organising and developing the firm’s resources and capabilities in order to succeed in this new environment.
The course begins with an overview of the trend towards globalisation and an examination of the international political and cultural environment. The theoretical underpinning of international trade is examined as well as the motives and mechanisms nations adopt to ‘manage’ trade flows despite the recommendations of free trade theory. An analysis of the countervailing trend towards regionalisation is undertaken with an in-depth look at the most extraordinary example of this phenomenon: the European Union. In the second half of the course the focus shifts to the firm itself, beginning with corporate organisation and strategy for international companies, before moving on to evaluate market entry strategies such as strategic alliances and exporting. Major functional areas of businesses, marketing and operations, are reviewed in their international context.