· Mentality of –centralized autocratic-pyramids,post industrial,decentralized,democratic,liberal-team work network
By form-computer literacy
2. Globalization –replacing production overseas and linking all contemporary economies through information and informational technoplogies (individual families,companies state)
3. Liberalization (privatization,free maret economy)
4. Socialization and Nationalization ( protect national producers,national consumers from foreign competitors)
4. Internationalization and globalization of business: definitions, stages and strategies.
Internationalization
In microeconomic sense ,it’s the process by which firms increase their awareness of the influence of the international activities on their future and establish and conduct transactions with firms/other countries
In macroeconomic sense it means international activities between national economics
International activity – managing export and import of goods,services,capitals and technologies as well as realizing joint projects in production finance,with foreign publice
When national economies become integrated through their companies,it means regionalization and globalization in business and economy.
Integration either of at the level of companies or national economies passes through the following stages:
-approaching
- joining
- merging
-commerce,telecommunication,services
- Production and finance
Classic stages of IBM
1. Exporting for cooperation –export/import operations-direct from producer to consumer-indirect through intermediaries –america ad-hoc(bu chance) indirect exporting –romania direct-indirect
2. Contracts stage –licensing + franchsising
3. Participation stage –portofolio management buying shares after 50%
4. Full involvement in internationalization by the means of direct investment-global company with branches
Direct investment – the dollar value of private enteprices in one country either controlled by investors in another country or in which foreign investors have an important management role
State strategies regarding IBM
Isolationism –state tries to be excluded from world economy.(iran,Cuba,Norhte Coreea) it is usually based on political considerations and is not economically justified for long-run
Protectionism –when text protect its own market from foreign competition
Free-trading –liberalism-the state minimizes restrictions in foreign trade usually thisi is a strategy of those states which are leaders at world market and are not afraid of competitiors for their goods
Reversed protectionism – state bills its deficit market with the imoorted goods and services ( china,japan,dubai,moldova)
The main indicators IB
1. Dollar volume of export and import of merchandise
2. Amount of direct investment in other countries
3. The percentage of sales revenue or profit contribution attributable to domestic and non domestic sales