UDC 339.5, 339.7, 339.9
BBC 65.5, 65.2/4
Published by the decision of the Department of Enterprise Economics
Institute of management in Economic, Ecological and Social systems,
Southern Federal University
(Protocol № 10 of 09.01.2018)
Reviewers:
Alexey Yu. Arkhipov, Doctor of Economics, Professor, Head of the Department
of International Business, Southern Federal University (105/42, B.Sadovaya Str.,
344000, Rostov-on-Don, Russia; e-mail: arkhipov@sfedu.ru);
Sebastian M. Bakalarczyk, PhD, Professor, Lodz University of Technology
(266 Piotrkovska Str., 90-924 Lodz, Poland; e-mail:
sebastian.bakalarczyk@p.lodz.pl);
Sergey F. Sutyrin, Honorary Figure of Higher Education, Doctor of Economics,
Professor, Head of the Department of World Economy,
St. Petersburg State University (7–9, Universitetskaya Emb.,
199034, St. Petersburg, Russia; e-mail: s.sutyrin@spbu.ru)
Pavlov, P. V.
International Business : textbook / P. V. Pavlov ; Southern Federal
University. – Rostov-on-Don ; Taganrog : Southern Federal University
Press, 2019. – 294 p.
ISBN 978-5-9275-3129-5
The course “International Business” is aimed to provide the future
specialists with theoretical and practical knowledge in the field of organization,
management and regulation of international business in the conditions of Russian
and world practice.
The textbook is for undergraduate and graduate students majoring in
Management, Economics, Customs, as well as employees of commercial
enterprises, customs officers and credit institutions, insurance and transport
organizations, etc.
Author's edition.
UDC 339.5, 339.7, 339.9
BBC 65.5, 65.2/4
ISBN 978-5-9275-3129-5
© Southern Federal University Press, 2019
© Pavlov P. V., 2019
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CONTENTS
ABBREVIATIONS ...................................................................................................... 6
INTRODUCTION ....................................................................................................... 7
TOPIC 1. CONCEPT AND MODERN STATUS OF INTERNATIONAL
BUSINESS .................................................................................................................. 10
CONCEPT, CAUSES AND PREREQUISITES FOR EMERGENCE AND
DEVELOPMENT OF INTERNATIONAL BUSINESS ................................................ 10
CLASSIFICATION FACTORS FOR DOING INTERNATIONAL BUSINESS .............. 19
INTERNATIONAL BUSINESS ENVIRONMENT ..................................................... 22
TOPIC 1 REVIEW QUESTIONS ........................................................................... 31
TOPIC 2. STRATEGIES IN INTERNATIONAL BUSINESS ............................. 32
COMPANY STRATEGY AND ITS IMPLEMENTATION STAGES ............................ 32
WAYS OF ENTERING FOREIGN MARKETS ....................................................... 36
INTERNATIONAL PRODUCTION ACTIVITY OF COMPANIES ............................. 51
OUTSOURCING .................................................................................................. 66
TOPIC 2 REVIEW QUESTIONS ........................................................................... 74
TOPIC 3. MODELS OF INTERNATIONAL BUSINESS .................................... 75
EXPORT-IMPORT MODEL OF INTERNATIONAL BUSINESS ............................... 76
LICENSED MODEL OF INTERNATIONAL BUSINESS ........................................... 77
INVESTMENT MODEL OF INTERNATIONAL BUSINESS ...................................... 81
INTERNATIONAL INDUSTRIAL COOPERATION AND JOINT ENTERPRISE ......... 83
TOPIC 3 REVIEW QUESTIONS ........................................................................... 93
TOPIC 4. COMPETITIVENESS IN INTERNATIONAL BUSINESS ............... 94
COMPETITION: ITS CONCEPT AND TYPES ........................................................ 94
PORTER’S THEORY OF COMPETITIVE ADVANTAGE OF NATIONS ................... 95
ASSESSMENT OF INTERNATIONAL COMPETITIVENESS OF COUNTRIES AND
COMPANIES: COMPARATIVE CHARACTERISTICS .......................................... 109
NATIONAL COMPETITIVE DEVELOPMENT STAGES ....................................... 117
TOPIC 4 REVIEW QUESTIONS ......................................................................... 120
TOPIC 5. ROLE OF FOREIGN INVESTMENT IN INTERNATIONAL
BUSINESS DEVELOPMENT ............................................................................... 121
IDEA AND FORMS OF FOREIGN INVESTMENT ................................................. 121
DYNAMICS AND STRUCTURE OF FOREIGN INVESTMENT IN GLOBAL
ECONOMY ........................................................................................................ 131
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TOPIC 5 REVIEW QUESTIONS ......................................................................... 134
TOPIC 6. MARKETING AND ELECTRONIC COMMERCE IN
INTERNATIONAL BUSINESS ............................................................................. 135
INTERNATIONAL MARKETING ........................................................................ 135
E-COMMERCE .................................................................................................. 141
BASIC E-COMMERCE MODELS AND THEIR IMPLEMENTATION FEATURES ... 144
TOPIC 6 REVIEW QUESTIONS ......................................................................... 149
TOPIC 7. LOGISTICS IN INTERNATIONAL BUSINESS .............................. 150
LOGISTICS, ITS DEFINITION AND PARTICIPANTS ........................................... 150
LOGISTICS TRANSPORT INFRASTRUCTURE .................................................... 153
BASIC DELIVERY TERMS: INCOTERMS 2010 ............................................ 162
TOPIC 7 REVIEW QUESTIONS ......................................................................... 168
TOPIC 8. PRICING IN INTERNATIONAL BUSINESS ................................... 169
FUNDAMENTALS AND FEATURES OF PRICING IN GLOBAL MARKET ............. 169
PRICING IN GLOBAL COMMODITY MARKETS OF VARIOUS TYPES ............... 175
FOREIGN TRADE PRICING: PRACTICE AND METHODS .................................. 180
TOPIC 8 REVIEW QUESTIONS ......................................................................... 194
TOPIC 9. FINANCING AND PAYMENTS CONDITIONS IN
INTERNATIONAL BUSINESS ............................................................................. 195
FORMS OF FINANCING INTERNATIONAL BUSINESS ACTIVITIES .................... 195
FINANCING OF COMPANY’S INTERNATIONAL OPERATIONS WITH
PARTICIPATION OF INSURANCE AND EXPORT FINANCE INSTITUTIONS ........ 200
FORMS OF PAYMENTS IN INTERNATIONAL BUSINESS .................................... 201
TOPIC 9 REVIEW QUESTIONS ......................................................................... 217
TOPIC 10. INTERNATIONAL TAX PLANNING.............................................. 218
INTERNATIONAL TAX PLANNING MAIN CATEGORIES ................................... 218
TAX RESIDENCY OF INDIVIDUALS .................................................................. 222
TAX RESIDENCE OF LEGAL ENTITIES ............................................................ 225
INTERNATIONAL DOUBLE TAXATION ............................................................. 226
ELIMINATION OF DOUBLE TAXATION ............................................................ 229
TOPIC 10 REVIEW QUESTIONS ....................................................................... 231
TOPIC 11. LEGAL EXECUTION OF AGREEMENTS IN
INTERNATIONAL BUSINESS ............................................................................. 232
LEGAL REGULATION OF TRANSACTIONS ....................................................... 232
INTERNATIONAL COMMERCIAL TRANSACTION PROCEDURE ....................... 234
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