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Competing in a global context (IFRS Standards (IFRS 1 - First time…
Competing in a global context
Global Context
Internal Context
• Structures
• Prevailing Culture
• Internal stakeholders
• Existing relationships
External context
• External stakeholders
• Political regulations
• resources
• cultural norms
Competing and trading among countries
Relative comparative advantage
Absolute comparative advantage
Supply Chains
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Hidden costs
• Shipping
• Time Delays
Carbon footprint
Supply chain managment
Procurement
Sourcing
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Conversion
logistics
International operations strategy’s
Home country operations
Multi-domestic operations
Regional operations
Global coordinated operations
Economics and financial flow
International financial institutions
International monetary fund
Helps countries in financial trouble borrow money
The world Bank
Helps to eradicate extreme poverty
Balance of payments – Tracks transactions between individuals, firms or government bodys:
Current accounts: :
capital account
financial acccount
Foreign direct investment
Transfer pricing
Transfer mispricing = illegal
Arms Length principal
allows for shifting profit
Unitrary taxations with profit apportionement
Exchange rate fluctuations
affects import export costs
Foreign exchange market - Forex
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Mc Burger index - over or undervalued currency
governemt intevention
buying currency using foreign currency reserves
increase interest rates
Globalisation
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Convergence
Divergence
crossvergence
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Glocalisation
accepting global norms and practises but adapting for local conditions
Employee relations
global talent
international labour
product markets
human resource managment
Managing cultural differences
Corporate social respnsability
IFRS Standards
IFRS 1 - First time adoption of international financial reporting standards
IFRS 2- Share-based payment
IFRS 3 - Buisness combinations
IFRS 4- Insurance contracts
IFRS 5 - Non-Current assets held for sale and discontinued operations
IFRS 6 - Explorations for and evalluation of mineral resources
IFRS-7 - Financial insruments - Disclosure
IFRS 8 - Operating segments
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IFRS 9 - Financial Instruments
IFRS 10 – Consolidated financial statements
IFRS 11 Join Arrangements
IFRS 12- Discloure of interest in other entities
IFRS 13 Fair value measurement
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IFRS 14 – Regulatory deferral accounts
Modes of Entry Into international markets
Indirect exporting
Direct exporitng
Joint ventrures
strategic alliances
global strategic partnerships
Licensing
franchising
conrtract manufacturing
management contracting
direct investment
