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ProfessorAlanRugmanMMM001InternationalStrategicManagementSession1Regionalandglobalstrategy2Figure1.1:ModelforthisbookRugmanandCollinson(2012)p:273RegionalandglobalstrategyObjectivesIntroductionWorldbusiness:abriefoverviewToday’sinternationalenvironmentGlobalizationandstrategicmanagementThestudyofinternationalbusinessFrameworkforthisbook4ObjectivesDefinethetermsinternationalbusinessandMNE.Discussthetwoprimarywaysinwhichinternationalbusinessoccurs:tradeandFDI.Examinetheimpactofthetriadoninternationaltradeandinvestment.Describethecurrentstateofworldeconomiesandtheroleofgovernmentandtraderegulationsintheconductofinternationalbusiness.DiscusstheimportanceoftechnologyandtheroleofSMEsintheinternationalbusinessarena.ExaminehowMNEsusetriad/regionalstrategiestocompeteeffectivelyintheinternationalmarketplace.Discussthedeterminantsofnationalcompetitiveadvantage.5IntroductionInternationalbusiness:thestudyoftransactionstakingplaceacrossnationalbordersforthepurposeofsatisfyingtheneedsofindividualsandorganizations.Multinationalenterprises(MNEs):acompanyheadquarteredinonecountrybuthavingoperationsinothercountries.6TradeandinvestmentTradeconsistsofexportsandimports:Exports:goodsandservicesproducedinonecountryandthensenttoanothercountry.Imports:goodsandservicesproducedinonecountryandboughtinanothercountry.ForeignInvestment:consistsofcompaniesinvestingfundstostartorimproveoperationsinanothercountry.7Table1.1WorldTrade,2008Note:DataforEuropeanUnionincludeintra-EUtrade.Exportsarecalculatedbyincludingfreightandinsurancewhileimportsdonotincludefreightandinsurance.Asaresultdatamightnotbeconsistentwithotherdatainthisbook.Source:AdaptedfromInternationalMonetaryFund,DirectionofTradeStatisticsYearbook,2009(Washington,DC:IMF,2009),pp.2–5.ImportsExportsCountry/regionBillionsofUS$%oftotalBillionsofUS$%oftotalNorthAmerica2,093.0612.632,682.5416.70UnitedStates1,338.518.072,036.7712.68Canada458.602.76394.862.45Mexico295.951.78250.911.56EuropeanUnion(15)5,801.3935.006,169.5638.42AsiaincludingJapan4,
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