As I Was Saying…Observations on International Business and Trade Policy, Exports, Education, and the Future

New Book from Professor Czinkota! As I Was Saying…Observations on International Business and Trade Policy, Exports, Education, and the Future

In Stock:  March 6, 2012.     To Pre-order, Click Here.

With a Foreword by Philip Kotler, the S.C. Johnson & Son Distinguished Professor of International Marketing at the Kellogg School of Management at Northwestern University, and the artistic touch by David Clark—an award winning and syndicated cartoonist—this exciting new title by Michael Czinkota is the perfect read for business people to better understand just what is at stake in understanding and strategizing about international issues and opportunities.

Czinkota quickly takes the reader on a voyage between sight and word, and even hard core analysts will not be able to avoid cracking the occasional smile. A long-term vision, accompanied by ongoing analysis of the key international business and marketing issues that shape our global world is just a little of what you’ll find inside.

There is the old saying that “When storms come about, little birds seek to shelter, while eagles soar.” By reading and enjoying this book, you are hopefully likely to prefer the altitude of the eagles!

What Drives Globalization? Part 3/4

Globalization is driven by four factors:

  1. Cost
  2. Market
  3. Environment
  4. Competition

Environment:

Increasing consumer wealth and mobility, rapid information transfer across borders, publicity about the benefits of globalization, and technological revolutions continue to accelerate demands for global products and services. Newly emerging markets are benefiting from advanced communications by leaping over economic development stages that others slogged through in earlier years.

A new group of global players is taking advantage of the increase in trading regions and newer technologies. These “mini-nationals” or “born globals” serve world markets from a handful of manufacturing bases rather than building a plant in every country as was the procedure in earlier years. Their smaller bureaucracies also allow these companies to move quickly to conquer new markets, develop new products, or change directions when the situation calls for it.

This is an excerpt from Dr. Czinkota’s book Global Business: Positioning Ventures Ahead, co-authored by Dr. Ilkka Ronkainen.

Michael R Czinkota and Ilkka A Ronkainen, Global Business: Positioning Ventures Ahead (New York: Routledge, 2011), pg.91-92.

 

Related posts:

A NEW ERA FOR UNIVERSITIES

Michael R. Czinkota and Andreas Pinkwart

Universities and their internationalization are important. Traditional knowledge exporters, such as the United States, Germany, France and England, aim to maintain their high share in the growing international academic market. They recognize the economic benefits of educating students who, when back home, will decide about purchases for infrastructure, engineering and other economic goals.

Exporting higher education generates income for universities and encourages them to become global entrepreneurs. The market is growing. Higher education students have increased by 53% since 2000 to more than 150 Million in 2007. In Australia and New Zealand, education is the third and fourth ranking services export. In the United States, international students and their dependents contributed $ 18.8 billion to the economy during the 2009-2010 academic year.

Universities shift their role from a provider of human resources to an innovation engine and entrepreneurial hub. Academic knowledge is transferred to new products and processes. Due to its ability to integrate international students and researchers, academia can commercialize knowledge and research in ways that companies cannot replicate.

Traditional internationalization within universities was a bottom-up activity, based on personal connections by an individual faculty member or by research teams. Increasingly, however, leading universities grow internationally as part of a top-down activity driven by institutional directives. Several key reasons account for this shift: A scientific approach demands awareness of and interaction with international work in order to benchmark one’s own competence. Internationalization is also part of becoming a competitive enterprise and contributes to capacity utilization. As part of their mission, universities need to provide a global social infrastructure and networks for their graduates. They also can assume new roles as incubators and connectors for emerging ideas and innovations. Asian countries in particular undertake major efforts to enhance the position of their universities.

For centuries, universities were leaders in international activities. They exported and imported students and faculty members by either admitting them or by sending them abroad. Latin as the ‘lingua franca’ facilitated exchanges of personnel. New locations were sought out, and international partnerships helped expansion, or were a means to escape poor conditions. For example, Georgetown University, a Jesuit school in Washington D.C., was left in legal limbo in the late 18th century, when pope Clement XIV suppressed the Jesuit order. However, by working with Jesuits in Byelorussia, the order continued to be recognized by Czarina Katherine the Great. For several decades, the Georgetown Jesuits were members of the Russian Province. Universities also raised funds on an international scale. They ensured international quality control, when in 1233 A.D. a papal bull ordered that those admitted as teachers in Toulouse, had the right to teach anywhere without further examinations.

Today, companies are the international leaders. They differentiate their international activities into investments (inflow and outflow) and trade (imports and exports). They shift entry approaches based on market needs. To some markets they export. Global sourcing and offshoring is used in others. Firms conduct franchising or licensing and often recruit their staff from around the globe. They make investments, either as sole owners or in joint ventures, and shift venues whenever necessary.
Universities have limited their response to globalization. Typically, they do not translate their experience into an institutional strategy. Many exchange programs do not outlive their faculty founders. International hiring decisions are mostly made in isolation rather than as part of a planned direction. Research collaborations tend to be temporary and international investments have been very limited – be it due to budget or risk constraints.

Since the 1980’s, globalization has moved university activities towards the market. Though universities are the prototype of knowledge institutions, there is only a very limited body of internationalization research in this important service sector. Experience is insufficiently recorded and not remembered. Insights tend to be peer reviewed based on academic criteria, with scant links to constituency needs. In consequence the knowledge and guideposts on internationalization is thin, and constitutes for many universities merely a search for student markets or respect among colleagues. International partnerships often only are intriguing wallpaper for a university president’s office. University implementation of international strategy often remains at the level of international business activities by smaller and medium sized businesses: limited, ad-hoc, unsystematic and frequently inconsistent.

Universities need to demonstrate the international benefits they can offer. The Roman Empire mainly expanded by offering market places, roads, language, laws, and linkages. Outsiders joined because affiliation offered the opportunity to live better. Universities need to achieve such voluntary interest as well. Given their knowledge base, their human talent and their cross-disciplinary capabilities, universities need to make the cost of non-collaboration so high that firms seek them out as knowledge source and partner. In addition to funding, universities need freedom. Just as universities helped define the openness and knowledge of principalities and kingdoms, today they can help define global society, competitiveness and influence.

In developing content, universities should concentrate on specific aspects in which to become multidisciplinary experts. Specialization has worked for firms, and will allow universities to provide more value to society. It will also be important to provide the connectivity between business, research and policy. Profits alone are insufficient for societal prosperity. Religion, family, culture, security are only a few of the components which universities can incorporate a systemic perspective. This will set their thinking apart and let their educational efforts become the transmission belt for the internationalization of their economy.

¬¬¬
Michael Czinkota czinkotm@georgetown.edu is a Professor of International Marketing and Business at Georgetown University and the University of Birmingham in the UK. He served in the Reagan and Bush administrations in international trade positions.
Andreas Pinkwart pinkresearch@gmx.de is Professor of Entrepreneurship and the President of the Handelshochschule Leipzig. He served as Minister for Innovation, Research and Science in Northrhein Westfalia and as Deputy Chair of the Free Democratic Party in Germany.

NEW BOOK – Global Business: Positioning Ventures Ahead

The new book, written by myself and Professor Ilkka A. Ronkainen focuses on international trade and its presence, challenges, and explains the many issues of global business and explores globalization and its different strategies. An excerpt:

” Of course, when demand is down among the world’s global trading partners, little or no trade growth is likely to occur until a recovery begins . This lull in trade creates an opportunity for companies new to global trading to study, learn and become knowledgeable. This is the time to prepare for the inevitable point when global buyers regain confidence – and they will regain confidence. Rsearch shows that it typically takes new exporters about two years to get their international legs before they begin to realize good sales results. The best time to get that experience is when there’s less pressure to learn it quickly to keep up with a booming industry or with the competition.”