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The document outlines the course 'International Business' (MGT401E) for the academic year 2024-2025, focusing on the complexities of the international business environment. It highlights key elements such as economic stability, political factors, geography, and technology, along with the benefits and challenges of engaging in international trade. Students will learn to navigate these dynamics to enhance their competitiveness in a globalized market.

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ahmed mostafa
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3 views14 pages

1 2

The document outlines the course 'International Business' (MGT401E) for the academic year 2024-2025, focusing on the complexities of the international business environment. It highlights key elements such as economic stability, political factors, geography, and technology, along with the benefits and challenges of engaging in international trade. Students will learn to navigate these dynamics to enhance their competitiveness in a globalized market.

Uploaded by

ahmed mostafa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Course Name: International Business

Course code: MGT401E


Credit hours : 3 hours
Semester/Academic year: 2024-2025
Lecture: 1-2
Course instructor : Dr. Sara Mohamed
Teaching assistant:

1
Intended Learning outcomes (ILOs)
By the end of this lecture the student will be able to:
1- Knows the concept of the international business environment
and its characteristics

2
• The international business environment is a complex and
ever-changing landscape that continues to shape the future
of global trade.

• Nowadays, businesses need to be able to anticipate changes


in markets and economies both at home and abroad if they
wish to remain competitive.

• Dive in to learn more about the benefits, challenges, and


scope of the international business environment.

• International businesses must be aware of their potential


risks while operating in foreign markets, as these elements
constantly change and may result in unexpected challenges.

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• Moreover, understanding the dynamics of international
business can give you an edge in our increasingly
globalized world.

• The benefits of understanding and participating in


international business are vast, including access to new
markets, increased profits, diversification of financial
risks, and opportunities for innovation.
•

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What is the International Business Environment and its

Key Elements?

• The international business environment is a complex


network of economic, political, legal, and cultural forces
that shape how organizations conduct international
business. It consists of external and internal factors that
impact a company’s success or failure in different
markets.

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• The key elements in the international business
environment are

1- One key factor in an international business


environment is economic stability. This includes
an analysis of GDP growth rates, inflation,
currency exchange rates, and trade barriers.
Companies must consider how a country’s
economy might affect its cost structures and
profitability when choosing which nations to
target for operations or investment.

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• 2- Political instability can be another significant factor
when making decisions about expanding abroad.
Companies must be aware of uprisings, war, and other
forms of conflict that can disrupt business operations.
The policies of a country’s government also need to be
considered in terms of taxes, regulations, and labor
laws.

• 3- Geography is another key factor as it affects the


logistics of transporting goods, accessing new markets,
and recruiting staff. Accessibility to natural resources
such as oil or minerals should also be considered
depending on the industry involved.

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4- Technology plays an increasingly important role in
international business operations today due to advances
in communication and digital infrastructure. Businesses
must understand how adopting new technologies might
affect their competitive landscape or open up new product
or service opportunities.

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The Benefits of the
International Business
• There are various benefits associated with conducting
International Business, as follows:
• By expanding into different markets, companies can gain
access to new customers and increase their profits. It also
allows them to diversify their operations to reduce risk and
capitalize on opportunities in other markets.

• Conducting International Business can help organizations


become more efficient and cost-effective. It allows them to
benefit from economies of scale, obtain lower-cost
resources, and utilize the latest technologies available in
different markets.

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• Companies can expand their brand visibility and reach a
more extensive customer base by conducting business
globally. This can increase sales and brand recognition in the
global market.

• By operating in different markets, companies can access


new opportunities and gain valuable insights into customer
behavior and preferences. This can help them develop better
products/services and make more informed decisions.

• It allows companies to explore different markets and expand


their operations.

• This helps organizations identify growth opportunities and


plan their strategies accordingly.

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• International businesses can benefit from the economies of
scale that come with operating in multiple markets.

• Companies have access to a broader pool of resources due


to international trade, which may not be available locally.

• International businesses can benefit from competitive


advantages such as lower production costs, tax incentives,
etc., due to differences in the economic environment across
countries.

• By understanding the international business environment


better, companies can reduce risks such as foreign exchange
rate fluctuation, political instability, etc.
•

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• The international business environment also helps
organizations to become more innovative and flexible in
their operations, which is essential for staying ahead of
the competition.
• International businesses can leverage cultural diversity
to create unique products and services that capture
more extensive markets.

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The Challenges of the International
Business Environment
• The international business environment is complex and
dynamic, making it difficult for companies to predict the
outcomes of their decisions accurately.

• International trade regulations and policies can vary


from country to country, making it hard for companies
to comply with them at once.

• International markets tend to be more competitive due


to differences in the economic environment, political
stability, and cultural preferences across different
countries.

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• Language barriers can become a significant obstacle
when conducting International Business, especially if
the company doesn’t have knowledgeable personnel
about different cultures and languages.
• International businesses may face higher costs
associated with production or transportation due to
exchange rate fluctuations or taxes imposed by foreign
countries on imported goods.
• International businesses may also face difficulties
regarding intellectual property protection in foreign
markets as laws vary from country to country.
• It is subject to political instability and other external
factors that can negatively affect a company’s
operations.

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