International Administration

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Leidy Maryury Garzon Forero Financial Management Business English II Universidad del Tolima CAT - Honda 2022

It is the in-depth understanding of business operations that aim to promote innovation, competitiveness and international projection of organizations from different economic sectors

OFFSHORING

A company performs the offshoring of part of its processes to another country. It can be the production unit, the IT area, accounting, finance, customer service, etc. "In general it is conceived as when you provide a service from distant locations"

Example: *** Association of Bavarian Physicians *** which has more than 22,000 members and provides medical care to some 12 million people, also decided in January 2009 to subcontract to another company for the operation of SAP applications

COUNTERTRADE

Countertrade means exchanging goods or services which are paid for, in whole or in part, with other goods or services, rather than with money. A monetary valuation can however be used in countertrade for accounting purposes. In dealings between sovereign states, the term bilateral trade is used

Example: *** BANCOMEXT *** It is a bank where the forms of exchange include barter, repurchase or compensation, counter purchase, shared or compensated requirements, exchange, exchange, evidence accounts or compensation.

OUTSOURCING

Outsourcing consists of an organization hiring a specialized external firm to take care of one or more activities within its own business process, it can also be about people

Example:*** Geo International *** is an export company that allows entrepreneurs to use external resources and entrust external entities with specialized processes in the field of foreign trade

FOREING DIRECT INVESTMENT

Foreign direct investment (FDI) is a substantial and lasting investment made by a company or government in a foreign company

Tipos

Conglomerate FDI

A company invests in a foreign business that is not related to its core business.

Example: *** BlackRock *** person or company that has several investments in different businesses

Vertical FDI

A company acquires a complementary business in another country.

Example: A US manufacturer could acquire a stake in a foreign company that supplies the raw materials it needs. *** Icex *** : textile manufacturer with various partners of clothing designers

Horizontal FDI

A company establishes the same type of business operation in a foreign country operating in its home country.

Example: A US-based cell phone provider buying a chain of phone stores in China *** Xiaomy ***

INTERNATIONAL FRANCHISING

International franchises is an effective strategy to have a greater positioning in the global market having the opportunity to expand the brand and improve sales

Example: McDonald’s (United States/fast food) KFC (United States/fast food) Burger King (USA/fast food) Pizza Hut (United States/pizzeria) 7 Eleven (United States/clothing stores) Marriott International (United States/hotel)