THE UNIVERSITY OF DA NANG
UNIVERSITY OF ECONOMICS
International Business
Lecturer’s Information
Nguyen Thi Phuong Thao MSc.
Email: thaontp@due.edu.vn
Mob: 0935666220
FB Group: KDQT ky 21718
1-2
Assessment plan
No
Score
Form of assessment
1 Score 1
Group assignment
2 Score 2
Multiple
choice
participation
3 Final exam Writing
Pct
20%
+
class
20 %
60 %
Total
100%
1-3
Text books
 Charles W. L. Hill (2014), Global Business
Today, 8th Edition, McGraw-Hill
 Kinh doanh quốc tế hiện đại, Charles W. L. Hill,
Nhà xuất bản Kinh tế Tp HCM (2014)
1-4
Course content
 Chapter 1 Globalization
 Chapter 2 National differences in political economy
 Chapter 3 Political economy and economic
development
 Chapter 4 Differences in culture
 Chapter 5 Ethics in international business
 Chapter 6 International trade theory
 Chapter 7 The political economy of International
Trade
 Chapter 8 Foreign direct investment
 Chapter 9 Region economic integration
1-5
1-6
1-7
Chapter 1
Globalization
Overview
Definition of globalization
Global institutions
1-9
Questions
1. Definition of MNE ?
2. Are Vietnamese firms able to become
multinational enterprises (MNEs) ? Why or
why not?
1-10
What Is Globalization?
Globalization - the shift toward a more
integrated and interdependent world
economy
The world is moving away from selfcontained national economies toward an
interdependent, integrated global
economic system
Globalization of markets and globalization
of production
1-11
What Is The
Globalization of Markets?
 Historically distinct and separate national
markets are merging
 It no longer makes sense to talk about the
“German market” or the “American market”
 Instead, there is the “global market”
 falling trade barriers make it easier to sell globally
 consumers’ tastes and preferences are converging on
some global norm
 firms promote the trend by offering the same basic
products worldwide
1-12
What Is The
Globalization of Markets?
Firms of all sizes benefit and contribute to
the globalization of markets
97% of all U.S. exporters have less than 500
employees
98% of all small and mid-sized German
companies participate in international markets
1-13
What Is The
Globalization of Production?
Firms source goods and services from
locations around the globe to capitalize on
national differences in the cost and quality
of factors of production like land, labor,
energy, and capital
Companies can
lower their overall cost structure
improve the quality or functionality of their
product offering
1-14
Why Do We Need
Global Institutions?
Global institutions
help manage, regulate, and police the global
marketplace
promote the establishment of multinational
treaties to govern the global business system
1-15
Why Do We Need
Global Institutions?
 Examples include
the General Agreement on Tariffs and Trade
(GATT)
the World Trade Organization (WTO)
the International Monetary Fund (IMF)
the World Bank
the United Nations (UN)
the G20
1-16
What Do Global
Institutions Do?
The World Trade Organization (like its
predecessor GATT)
polices the world trading system
makes sure that nation-states adhere to the
rules laid down in trade treaties
promotes lower barriers to trade and
investment
154 members in 2011
1-17
What Do Global
Institutions Do?
The International Monetary Fund (1944)
maintains order in the international monetary
system
lender of last resort for countries in crisis
Argentina, Indonesia, Mexico, Russia, South
Korea, Thailand, Turkey, Ireland, and Greece
The World Bank (1944)
promotes economic development via low
interest loans for infrastructure projects
1-18
What Do Global
Institutions Do?
The United Nations (1945)
maintains international peace and security
develops friendly relations among nations
cooperates in solving international problems
and in promoting respect for human rights
is a center for harmonizing the actions of
nations
The G20
forum through which major nations tried to
launch a coordinated policy response to the
2008-2009 global financial crisis
1-19
What Is Driving
Globalization?
 Declining barriers to the free flow of goods,
services, and capital
 average tariffs are now at just 4%
 more favorable environment for FDI
global stock of FDI was $15.5 trillion in 2009
 facilitates global production
 Technological change
 microprocessors and telecommunications
 the Internet and World Wide Web
 transportation technology
1-20
What Does Globalization
Mean For Firms?
Lower barriers to trade and investment
mean firms can
view the world, rather than a single country,
as their market
base production in the optimal location for that
activity
But, firms may also find their home
markets under attack by foreign firms
1-21
Declining Trade And
Investment Barriers
Average Tariff Rates on Manufactured Products as Percent of Value
1-22
What Does Globalization
Mean For Firms?
 Technological change means
 lower transportation costs
help create global markets and allow firms to
disperse production to economical, geographically
separate locations
 low cost information processing and communication
firms can create and manage globally dispersed
production
 low cost global communications networks
help create an electronic global marketplace
 global communication networks and global media
create a worldwide culture and a global consumer
product market
1-23
The Changing Demographics
Of The Global Economy
 Four trends are important:
1. The changing world output and world
trade picture
2. The changing foreign direct investment
picture
3. The changing nature of the multinational
enterprise
4. The changing world order
1-24
How Has World Output And
World Trade Changed?
In 1960, the U.S. accounted for over 40%
of world economic activity, but by 2009,
the U.S. accounted for just 24%
a similar trend occurred in other developed
countries
In contrast, the share of world output
accounted for by developing nations is
rising
expected to account for more than 60% of
world economic activity by 2020
1-25
How Has World Output And
World Trade Changed?
The Changing Demographics of World GDP and Trade
1-26
How Has Foreign Direct
Investment Changed Over Time?
In the 1960s, U.S. firms accounted for
about two-thirds of worldwide FDI flows
Today, the United States accounts for less
than one-fifth of worldwide FDI flows
Other developed countries have followed a
similar pattern
In contrast, the share of FDI accounted for
by developing countries has risen
Developing countries, especially China, have
also become popular destinations for FDI
1-27
How Has Foreign Direct
Investment Changed Over Time?
Percentage Share of Total FDI Stock 1980-2007
1-28
How Has Foreign Direct
Investment Changed Over Time?
FDI Inflows 1988-2008
1-29
What Is A
Multinational Enterprise?
Multinational enterprise (MNE) - any
business that has productive activities in
two or more countries
Since the 1960s
the number of non-U.S. multinationals has
risen
the number of mini-multinationals has risen
1-30
The Changing World Order
 Many former Communist nations in Europe and
Asia are now committed to democratic politics
and free market economies
 creates new opportunities for international businesses
 but, there are signs of growing unrest and totalitarian
tendencies in some countries
 China and Latin America are also moving toward
greater free market reforms
 between 1983 and 2010, FDI in China increased from
less than $2 billion to $100 billion annually
 but, China also has many new strong companies that
could threaten Western firms
1-31
How Will The Global Economy
Of The 21st Century Look?
 The world is moving toward a more global
economic system…
 But globalization is not inevitable
 there are signs of a retreat from liberal economic
ideology in Russia
 Globalization brings risks
 the financial crisis that swept through South East Asia
in the late 1990s
 the recent financial crisis that started in the U.S. in
2007-2008, and moved around the world
1-32
Is An Interdependent Global
Economy A Good Thing?
 Supporters believe that increased trade and
cross-border investment mean
 lower prices for goods and services
 greater economic growth
 higher consumer income, and more jobs
 Critics worry that globalization will cause
 job losses
 environmental degradation
 the cultural imperialism of global media and MNEs
 Anti-globalization protesters now regularly show
up at most major meetings of global institutions
1-33
How Does Globalization
Affect Jobs And Income?
Critics argue that falling barriers to trade
are destroying manufacturing jobs in
advanced countries
Supporters contend that the benefits of
this trend outweigh the costs
countries will specialize in what they do most
efficiently and trade for other goods—and all
countries will benefit
1-34
How Does Globalization Affect Labor
Policies And The Environment?
 Critics argue that firms avoid the cost of
adhering to labor and environmental regulations
by moving production to countries where such
regulations do not exist, or are not enforced
 Supporters claim that tougher environmental
and labor standards are associated with
economic progress
 as countries get richer from free trade, they
implement tougher environmental and labor
regulations
1-35
How Does Globalization
Affect National Sovereignty?
 Is today’s global economy shifting economic power away
from national governments toward supranational
organizations like the WTO, the EU, and the UN?
 Critics argue that unelected bureaucrats have the power
to impose policies on the democratically elected
governments of nation-states
 Supporters claim that the power of these organizations is
limited to what nation-states agree to grant
 the power of the organizations lies in their ability to
get countries to agree to follow certain actions
1-36
How Is Globalization
Affecting The World’s Poor?
 Is the gap between rich nations and poor nations
getting wider?
 Critics believe that if globalization was beneficial
there should not be a divergence between rich
and poor nations
 Supporters claim that the best way for the poor
nations to improve their situation is to
 reduce barriers to trade and investment
 implement economic policies based on free market
economies
 receive debt forgiveness for debts incurred under
totalitarian regimes
1-37
How Does The Global
Marketplace Affect Managers?
 Managing an international business differs from
managing a domestic business because
 countries are different
 the range of problems confronted in an international
business is wider and the problems more complex
than those in a domestic business
 firms have to find ways to work within the limits
imposed by government intervention in the
international trade and investment system
 international transactions involve converting money
into different currencies
1-38
Việt Nam - Trade
Total
Year
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
(Millions USD)
18.399
19.907
20.818
23.143
30.084
31.190
36.439
45.403
58.458
69.420
84.717
111.244
143.399
127.045
157.075
203.656
228.310
Export
7.256
8.756
9.324
11.520
14.449
15.027
16.706
20.176
26.504
32.442
39.826
48.561
62.685
57.096
72.237
96.906
114.529
Import
11.143
11.151
11.494
11.622
15.635
16.162
19.733
25.227
31.954
36.978
44.891
62.682
80.714
69.949
84.839
106.75
113.78
1-39
ĐẦU TƯ TRỰC TIẾP NƯỚC NGOÀI TẠI VIỆT NAM THEO ĐỐI TÁC
(Lũy kế các dự án còn hiệu lực đến ngày 31/12/2012)
Đối tác đầu tư
TT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Nhật Bản
Đài Loan
Singapore
Hàn Quốc
BritishVirginIslands
Hồng Kông
Hoa Kỳ
Malaysia
Cayman Islands
Thái Lan
Hà Lan
Brunei
Trung Quốc
Canada
Samoa
Pháp
Vương quốc Anh
Thụy Sỹ
Luxembourg
Australia
Số dự án
1849
2234
1119
3197
510
705
648
435
54
298
177
131
893
128
95
381
161
92
24
276
Tổng vốn đầu tư
đăng ký (USD)
28,699,621,246
27,129,094,760
24,875,349,749
24,815,962,168
15,386,367,951
11,966,693,190
10,507,189,345
10,196,424,427
7,505,985,912
6,063,689,790
5,910,079,092
4,800,984,177
4,697,221,553
4,689,051,904
3,878,698,644
3,142,721,227
2,617,277,101
2,000,717,319
1,501,659,633
1,313,225,884
Vốn điều lệ (USD)
8,149,053,836
10,924,000,860
7,132,496,424
8,557,624,062
5,302,624,922
3,885,429,926
2,518,764,942
3,587,302,682
1,551,590,422
2,682,720,169
2,515,804,521
984,904,375
2,348,999,504
1,023,047,375
1,318,254,799
1,616,462,859
1,593,474,066
1,368,745,657
784,682,657
564,032,196
1-40
TỔNG HỢP ĐẦU TƯ RA NƯỚC NGOÀI THEO NGÀNH
Các dự án còn hiệu lực lũy kế đến 20/3/2013
Ngành
TT
Vốn đầu tư của dự án
ở nước ngoài (USD)
Số dự án
Vốn đầu tư của nhà đầu
tư VN (USD)
Vốn điều lệ của nhà đầu tư
VN (USD)
1 Khai khoáng
99
23,471,679,986
7,141,904,546
4,649,717,842
2 Nông,lâm nghiệp;thủy sản
80
2,052,822,766
1,953,732,013
1,955,091,395
3 SX,pp điện,khí,nước,đ.hòa
9
2,117,875,678
1,873,869,133
1,681,222,938
4 Nghệ thuật và giải trí
5
1,239,215,000
1,239,215,000
1,238,500,000
42
1,494,470,243
1,161,643,241
965,680,444
124
718,562,144
574,916,566
526,590,566
7 Tài chính,n.hàng,bảo hi?m
28
572,844,000
538,121,900
483,371,900
8 Dv lưu trú và ăn uống
29
545,136,549
415,815,821
415,815,821
9 KD bat động sản
29
466,640,259
218,592,427
218,492,427
158
294,845,159
188,737,130
186,256,130
19
269,149,379
86,053,087
67,015,000
5
79,180,471
45,103,915
37,739,615
13 HĐ chuyên môn, KHCN
63
44,848,783
38,711,883
38,711,883
14 Xây dựng
29
57,038,134
32,052,379
30,580,379
15 Hành chính và dv? h? trợ
11
38,780,000
10,295,000
10,070,000
16 Cap nước;xử lý chat thải
2
8,900,000
7,920,000
7,920,000
17 Dịch vu khác
7
4,722,500
3,327,500
3,327,500
18 Giáo duc và đào tạo
3
8,315,700
2,085,000
2,085,000
742
33,485,026,751
15,532,096,541
12,518,188,840
5 Thông tin và truyền thông
6 CN chế biến,chế tạo
10 Bán buôn,bán lẻ;sửa chữa
11 Vận tải kho bui
12 Y tế và trợ giúp XH
Tổng số
1-41
TỔNG HỢP ĐẦU TƯ RA NƯỚC NGOÀI THEO ĐỐI TÁC
Các dự án còn hiệu lực lũy kế đến 20/3/2013
Quốc gia/vùng lãnh thổ
TT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Lào
Campuchia
Liên bang Nga
Venezuela
Peru
Malaysia
Mozambique
Myanmar
Hoa Kỳ
Cameroon
Angiêri
Singapore
Australia
Cuba
Madagascar
BritishVirginIslands
Irắc
CHLB ĐỨC
Iran
Haiti
Số dự án
227
129
17
2
5
9
1
8
97
3
1
46
15
2
1
6
1
10
1
2
Vốn đầu tư của
dự án ở nước
ngoài (USD)
Vốn đầu tư của
nhà đầu tư VN
(USD)
4,994,334,586
2,924,868,170
4,630,851,831
12,434,400,000
2,911,829,830
812,622,740
493,790,000
348,083,473
378,563,626
371,705,004
562,400,000
1,022,967,701
187,994,540
125,460,000
117,360,000
116,584,452
100,000,000
87,136,478
82,070,000
99,892,480
4,206,754,894
2,739,121,040
2,368,314,090
1,825,120,000
1,276,729,830
412,923,844
345,653,000
332,482,716
320,119,616
241,157,303
224,960,000
156,448,192
128,658,835
125,460,000
117,360,000
116,584,452
100,000,000
82,414,771
82,070,000
59,892,455
Vốn điều lệ của nhà
đầu tư VN (USD)
3,997,560,877
2,680,135,740
966,314,090
1,241,120,000
772,229,830
412,923,844
345,653,000
332,482,716
317,893,616
66,913,800
224,960,000
129,855,105
127,877,335
125,460,000
117,360,000
116,584,452
100,000,000
49,664,771
82,070,000
59,892,455
1-42
TỔNG HỢP ĐẦU TƯ RA NƯỚC NGOÀI THEO ĐỐI TÁC
Các dự án còn hiệu lực lũy kế đến 20/3/2013
TT
Quốc gia/vùng lãnh
thổ
Số dự
án
Vốn đầu tư
Vốn đầu tư
Vốn điều lệ
của dự án ở
của nhà đầu tư của nhà đầu tư
nước ngoài
VN (USD)
VN (USD)
(USD)
21 Indonesia
7106,710,000
50,066,500
50,066,500
22 Uzbekistan
450,180,000
49,650,000
49,650,000
23 Tuynidi
236,340,000
36,340,000
36,340,000
24 Công gô
2224,880,000
23,230,000
23,230,000
25 Đông Timor
114,919,294
14,919,294
500,000
26 Hồng Kông
1415,998,875
14,909,757
14,909,757
27 Trung Quốc
1215,071,900
13,075,500
13,075,500
812,035,200
11,837,700
11,837,700
2310,618,500
8,525,500
5,025,500
30 New Zealand
187,040,000
8,475,000
8,475,000
31 Angola
65,332,387
4,532,387
4,532,387
32 Ukraina
618,237,495
3,154,495
3,154,495
174,294,167
3,130,167
3,130,167
34,150,000
2,429,900
2,429,900
28 Thái Lan
29 Hàn Quốc
33 Nhật Bản
34 Cayman Islands
1-43