1. Jan Surya Sharma International Marketing Management

5. Ancient International Business V. Gordon Childe -“Man Makes Himself” 6000 – 4000 BC Animal imports from Asia by Sahara People 3000 BC – Trade between India, Mesopotamia & Egypt 5 th BC - Indian merchants Colony in Egypt & SE Asia 100 BC - Silk Route - Xian to Rome Exports: Food Items, Craft Work, Pepper & Spices Imports: Luxury items, Exotic stones etc.

6. SILK ROUTE – XIAN TO ROME

8. Post WW II Developments - 1945 WB (IBRD+IDA) 186 countries - 1945 UN 192 members - 1945 IMF 186 member countries - 1947 GATT now WTO 153 members Change in attitudes – Reconstruction & Self- reliance Bi-polarisation of Geopolitics Creation of Trade Barriers – tariff & non-tariffs 1944 - Britton Woods Agreements & Need for Multilateral Org. for revival & growth of trade 1980 - Disintegration of USSR/End of Cold War

10. Reasons of Recent International Growth Rapid Increase in Technology Liberalization, Privatization & Globalization Development of Institutions supporting & facilitating International Trade Consumers/Customers Pressure Increased Global Competitiveness

27. INTL. MKETING ENV.

31. Stages of Domestic to Global MGMT. EMPHASIS FOCUS Marketing Strategy Structure Management Style Manufacturing Stance Investment Policy Performance Evaluation STAGE - I DOMESTIC Domestic Domestic Domestic Domestic Mainly Domestic Domestic Domestic Market Area STAGE - II INTL. Ethnocentric Extension International Centralized Top Down Mainly Domestic Domestic used Worldwide Against home Country Mkt. Share STAGE – III MULTINATIONAL Polycentric Adaptation Worldwide Area Decentralized Bottom Up Host Country Mainly in Each Host Country Each Host Country Mkt. Share STAGE - IV GLOBAL Geocentric Extension Adaptation creation matrix/mixed Integrated Lowest Cost Worldwide Cross Subsidization Worldwide

32. Process Of Internationalization

41. PORTER’S DIAMOND MODEL Competitive Advantage of Nations ( Diamond Porter) CHANCE Government FACTOR CONDITIONS DEMAND CONDITIONS Firm Strategy, Structure, and Rivalry Related and Supporting Industries

42. Factor Conditions -Country creates its own skilled resources & technological base - Stock of factors needs to be upgraded and deployed - Disadvantages in factors force innovation Demand Conditions - Local demanding market leads to national advantage - Trend-setting strong local market supports local firms anticipate global trends Related & Supporting Industries - Firms having local supporting competitive industries, enjoy more cost effective & innovative inputs - This effect is strengthened when the suppliers themselves are strong global competitors Firm Strategy, Structure & Rivalry - Local conditions affect firm strategy: . German companies tend to be hierarchical . Italian cos. tend to be small & run more like extended families - Such strategy & structure helps to determine in which types of industries a nation's firms will excel. - While at a single point in time a firm prefers less rivalry, over the long run more local rivalry is better because it puts pressure on firms to innovate and improve. - In fact, high local rivalry results in less global rivalry.

45. PORTER’S DIAMOND MODEL Competitive Advantage of Nations (aka Diamond Porter) CHANCE Government FACTOR CONDITIONS DEMAND CONDITIONS Firm Strategy, Structure, and Rivalry Related and Supporting Industries

46. Factor Conditions -Country creates its own skilled resources & technological base - Stock of factors needs to be upgraded and deployed - Disadvantages in factors force innovation Demand Conditions - Local demanding market leads to national advantage - Trend-setting strong local market supports local firms anticipate global trends Related & Supporting Industries - Firms having local supporting competitive industries, enjoy more cost effective & innovative inputs - This effect is strengthened when the suppliers themselves are strong global competitors Firm Strategy, Structure & Rivalry - Local conditions affect firm strategy: . German companies tend to be hierarchical . Italian cos. tend to be small & run more like extended families - Such strategy & structure helps to determine in which types of industries a nation's firms will excel. - While at a single point in time a firm prefers less rivalry, over the long run more local rivalry is better because it puts pressure on firms to innovate and improve. - In fact, high local rivalry results in less global rivalry.

53. World GDP Growth

54. Volume of World Merchandise Exports & GDP, 2000 - 2007

55. Source: International Trade Statistics (WTO)

61. Thanks!

63. Thanks!