EMIND

• • Entrepreneurs involved with the global marketplace.
• • They seize the opportunity to interact with people of different nationalities and cultural heritages.
• • They rise above nationalistic pursuits to see the big picture of global competition without abdicating their own nationalities.
• • They have a core language plus working knowledge of other nationalities.
• a Global thinking is important because today's consumers can select products, ideas, and services from many nations and cultures.
• Entrepreneurs learn to design and adopt strategies for different countries.
• engagement been faciated thru:

  • a decline in trade barriers, and
  • emergence of major trading blocs
• Diaspora - People who have settled far from their ancestral homelands
• The movement, migration, or scattering of a

  people away from an established or ancestral

  homeland
• They create connections that help entrepreneurs collaborate within a country and across ethnicities

  They speed the flow of information across borders

  They create a bond of trust
• WTO - Jan 1, 1995, Geneva, Switzerland. Employs experts: lawyers, economists, statisticians, communication experts
• World Trade Organization
• WTO Functions:

  Administer WTO Trade Agreements

  Ensure rules of international trade are correctly applied and enforced

  Handle trade negotiations or trade disputes

  Monitor national trade policies

  Provide technical assistance and training for developing countrie
• North America Free Trade Association
• Jan 1, 1994 as an international agreement among Canada, Mexico and the US

  In 2017, replaced by the Trump Administration to USMCA (US-Mexico-Canada Agreement)16
• OPPORTUNIES:

  largest free trade area

  Protected from foreign competition because of local content laws

  NAFTA eliminated trade barriers in nearly all service sectors
• NAFTA offers strong protection for intellectual properties: patents, copyrights, industrial design rights, trade secret rights, etc
• The European Union
• Founded in 1957 as the European Economic Community

  In 1992 became a full-fledged economic union

  An economic and political union of 27 member states

  Member states have a combined population of 500M (7.3% of world population)

  Bloc GDP is 20% of global GDP17by prof
• OJECTIVES:

  Elimination of custom duties among all member states

  Free flow of goods and services among all members

  Creation of common trade policies toward all countries outside the EU

  Free movement of capital and personnel within the bloc

  Encouragement of economic development throughout the bloc

  Monetary and fiscal coordination among all members
• ASEAN - Association of SouthEast Asian Nation
• Established in 2015 in pursuit of regional economic integration for ASEAN members

  In 2014, collectively the third largest economy in Asia and the seventh largest in the world
• AEC Blueprint 2025 characteristics:

  A Highly Integrated and Cohesive Economy

  A Competitive, Innovative, and Dynamic ASEAN

  Enhanced Connectivity and Sectoral Cooperation

  A Resilient, Inclusive, People-Oriented, and People-Centred ASEAN;

  A Global ASEAN
• Opportunities for Entrepreneurs

  abundant raw materials and capital; idle capacity

  growth through market expansion

  lower wages and cost of materials

  most profitable markets

  cyclical or seasonal slumps

  Peculiar manufacturing technology

  learning about products not sold domestically

  learning about other cultures

  traveling for business or pleasure
• Competitive Advantage of NATIONS

  Resource rich countries - natural resources

  Labor Rich countries - manpower

  Market Rich countries - Purchasing power
• Characteristics of successful global startups:

  Global vision from inception

  Internationally experienced management

  Strong international business network

  Preemptive technology or marketing

  A unique intangible asset

  A linked product or service

  Tight organizational coordination worldwide
• Ways of going international

  importing

  Exporting

  International Alliances & Joint Ventures

  Direct Foreign Investment

  Licensing
• Importing - Buying and shipping foreign-produced goods for domestic consumption
• To be aware of importation opportunities

  attend trade shows and fairs where firms gather to display their products and services

  monitor trade publications
• Exporting - The shipping of a domestically produced good to a foreign destination for consumption
• Exporting increases market potential.
• Firms eventually become efficient in the production due to the expanded market which translates to lower costs.
• It will take time to learn the intricacies and efficiencies of international business
• Note that it will normally take 3 to 5 years to become profitable in exportation
• Joint Venture - Pro

  Gaining intimate knowledge of local conditions and government where facility is located.

  Sharing resources mean compensating for weaknesses of each firm.

  Capital outlay and risk is shared.

  Strategic fit of a domestic firm with a foreign firm
• Joint Venture con:

  The problem of fragmented control

  Clash of corporate cultures and management styles

  Inconsistent tactical execution due to unclear roles can lead to mismanagement of resources
• Direct Foreign Investment
• DFO - A DFI is a domestically controlled foreign production facility. Typically involves 1 0 to 25 % ownership of the voting stock in a foreign enterprise
• Licensing - A business arrangement where a business (licenser) provides patents, trademarks, manufacturing expertise, or technical services to a foreign business (licensee)
• The licensee (and not the entrepreneur licenser) will be responsible for the capital outlay, daily production, marketing, technical, or management requirements