role relate to i.b

7/28/2019 Role relate to I.B

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ROLES RELATEDTO

INTERNATIONAL BUSINESS

Group members:

Hira Mehwish

Safia Anees

Anum Ansari

Sidra Idrees

Sidra Masroor


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ROLES RELATED TO INTERNATIONAL

BUSINESS

There are various roles that relates to international business.

Like information technology & commercial banks plays vital

role in international business.

We will discuss role of commercial banks in international

business.


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ROLE OF COMMERCIAL BANKSIN INTERNATIONAL BUSINESS:


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Bank offer services:for individually bank offer services like;

1.Foreign exchange.

2.Travellers check.

3.Electronic transfer.

For business bank plays a role of TRUSTY

AGENT by offering services like ;

1. Documentary collection.

2. Letter of credit.


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:

DOCUMENTARY COLLECTION

A documentary collection is a process, in which

the sellerinstructs his bank to

forward documents related to the export of

goods to the buyer's bank with a request to

present these documents to the buyer

forpayment, indicating when and on what

conditions these documents can be released to

the buyer.
http://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Documenthttp://en.wikipedia.org/wiki/Exporthttp://en.wikipedia.org/wiki/Buyerhttp://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Buyerhttp://en.wikipedia.org/wiki/Exporthttp://en.wikipedia.org/wiki/Documenthttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Seller


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ADVANTAGES ANDDISADVANTAGES OF

DOCUMENTARY COLLECTION


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A letter of credit is a document issued by a

financial institution, or a similar party, assuring

payment to a seller of goods and/or services

provided certain documents have been

presented to the bank.

LETTER OF CREDIT:


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.HELP OF FINANCIAL DEVICES IN



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FOREIGN EXCHANGE MARKET:

The foreign exchange market or currency market

is a form ofexchange for the global decentralizedtrading of international currencies. Financial

centers around the world function as anchors of

trading between a wide range of different types

of buyers and sellers .
http://en.wikipedia.org/wiki/Exchange_(organized_market)http://en.wikipedia.org/wiki/Exchange_(organized_market)


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FOREIGN EXCHANGE BANKS

-These banks act as a broker between commercial customerand foreign exchanges around the world

-International businesses receive payments in foreign

currencies for their export, the income it receives from foreigninvestments and income received from licensing agreements

with foreign firms.

-International business use foreign exchange market to pay

foreign firms for its products and services and when it makes

direct investment in foreign country. International banks play

major roles in these transactions.


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FOREIGN BRANCH BANKING

- Some small commercial banks limit their reach to the

local business community; but as business has gone

global, so have commercial banks.

-Large banks such as Citigroup, Bank of America andChase are retail (consumer) banks that also maintain

full commercial banking activities in the United States

with branches in many countries.

- These larger banks may act as affiliates of smaller

banks that do not have branch presences in othercountries.

-These banks also arrange deals between their

customers globally, including strategic partnerships

and project fulfillment agreements


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. LOAN FINANCING TO


- Many commercial banks offers short as well as

long term loan financing to international

businesses. Many countries have form banksbacked by government funding to provide

funding for exporters and importers.

-Banking sector plays vital role of catalysts in

international market. Due to technology

advances in banking sector, communication gap

and delays in international business have really

narrow down a lot.


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SIGNIFICANCE:

-Without commercial banks, the international financeand import-export industry would not exist.

-Commercial banks make possible the reliable transferof funds and translation of business practices betweendifferent countries and different customs all over the

world.

-The global nature of commercial banking also makespossible the distribution of valuable economic andbusiness information among customers and thecapital markets of all countries.

-Commercial banking also serves as a worldwidebarometer of economic health and business trends


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CORPORATE FINANCING

- Companies always need to borrow money to cover

purchases of raw materials, machinery parts,

inventory and/or payroll.

- Banks with overseas branches or affiliates can

simplify the process of corporate finance throughout acompany's organization by consolidating the

transaction procedures, reporting and record keeping.

- International commercial bank can also provide

referrals to professional service firms in other

countries, as well as arrange introductions to othercompanies appropriate as customers or for strategic

partnerships.


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TRADE FINANCE

-Commercial banks doing international business are

also called merchant banks because they finance trade

between companies and customers located in different

countries.

- Done by issuing LOCs.

- The LOC may also be used by the company to

guarantee a manufacturer's loan, allowing it to finance

the manufacture of the goods to be delivered.


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INFORMATION TECHNOLOGY

Information technology (IT) is a field concerned withthe use of technology in managing and processing

information

Information technology can allow departments tomore efficiently and successfully perform theirbusiness operations. Information technology is animportant enabler of business success and innovation.


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INFORMATIONTECHNOLOGYSROLE

ININTERNATIONAL BUSINESS

Information technology is everywhere in business

Anyone involved in business must understand

technology

Business functions receiving the huge benefits from

the information technology

Customer service: click-to-talk, call scripting, auto

answering, call centers

I


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INFORMATIONTECHNOLOGYS

IMPACTSONBUSINESS

OPERATIONS

Reduce cost and improve productivity = supplychain management, enterprise resource planning

Improve customer satisfaction and loyalty =customer relationship management, loyalty programs

Create competitive advantage = businessintelligence/data warehousing

Generate growth = sales management systems

Global expansion = e-business.


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IMPACTONINTERNATIONAL

BUSINESSOPERATIONS

.

Accounting - provides quantitative information about

the finances of the business including recording,

measuring, and describing financial information.

Finance - deals with the strategic financial issues

associated with increasing the value of the business,while observing applicable laws and social

responsibilities


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WHY INFORMATION TECHNOLOGY BECOMINGA STRATEGIC RESOURCE?

1. INTENSE COMPETITION: intense competition is forcing

the organization to become more effective and efficient.

2. GLOBALIZATION OF BUSINESS OPERATIONS: As the

industry become more global it reduces time and space

barriers in production , marketing and manufacturing

operations.

3. ORGANIZATIONAL CHANGES: with constant

reorganization mergers and acquisitions top

management realizes the need for flexibility through

information technologies.

4. TECHNOLOGY REVOLUTION: the performance-price

ratio of a new generation of information technologies is

making them more affordable amd useful to

organization.


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EFFICIENCYAND EFFECTIVENESSOF IT

Internet make the world smaller, large

companies can now contact with employees and

partners around the globe.

IT also shrink the distance and time, simplified

the complex business processes

For example: JP Morgan is investing over 24

billion in over 1000 companies around the world


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GROWTHOF E-COMMERCE

Number of letters, voice calls and faxes around

the globe have reduced.

30% of internet users say it has resulted in new

business.

Physical meetings and relationships are

becoming less.

Electronic commerce spells the end of geography

and borders as industrial organization constructs.


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CONCLUSION:

In summary, advances in information

technology have changed the way we live and

have changed how people, businesses.

We are living in a knowledge-driven era,

where everyone has access to information

thanks to internet and a variety of other sources

of information.

However, the market is dominated by those,

who translate information into knowledge and

use the knowledge to improve productivity and

efficiency of their enterprises.


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THANK YOU.

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