Slide 1

Thai Stocks Drop Most in 19 Months on Bangkok Attack; Baht Falls ! 17/8/2015 Thai stocks sank the most in 19 months and the baht dropped after an explosion in Bangkok killed at least 20 people and put the nations tourism industry at risk.2 Thailand's currency sinks to a 6-year low 17/8/2015Thailand's baht currency slumped to a more than six-year low on Tuesday and shares fell in Bangkok over concerns an unprecedented attack in the capital could hit the vital tourism sector.

Bangkok attack again 18/8/2015 Police is searching for clues to an attack that could drop tourism and investor confidence. The Thai baht THB=TH fell 0.57 percent to 35.57 baht, its weakest in more than six years, on concern the bombing may scare off visitors. Thai stocks .SETI fell as much as 3 percent.

050352 Global Business for Import & Export Management

Lecture 1 August 19To: All students who take my class

Welcome and Thank you! Before starting the class,I would like to introduce myself and need the introduction from students side also.Yoshio Maki

Introduction I am a Japanese businessman. 1) I was an employee of SONY corporation for 20 years. 2) Then I was headhunted by Danish company to be CEO in Japan, Singapore and Hong Kong for 10 years. 3) From 2007, I started my own business in Japan and Hong Kong.Maki Name Card Yoshio Maki Visiting Professor

E-mail : maki@imc-maki.com Mobile : 098-921-2466 (Thailand)Japan office : 2-27-1, East B1F, Shinkawa, Chuo-Ku, Tokyo, 104-0033, Japan Tel : 81-(0)3-6222-8710 My Business Activities Wish Pharma International Limited (Hong Kong) Distributor for Mylan Institutional (Ireland) Woewag Pharma (Germany) TEMREX Corporation (USA)Top Express Enterprise (BVI) Financial companyMaki Corporation (Japan) Importer for Medical doctors and Dentists in Asian countries

My office in Tokyo

Mylan is a Fortune 500 company (USA). In 2014 Mylan was ranked number 377 on the Fortune 500 list, making it the 377th largest company in the United States when judged by revenue.Mylan achieved revenue of $6,909 million in 2014 and earned a profit of $624 million.

Mylan

Volunteer Activities1) Rotary Club Although stopping my membership of Rotary Club temporary, I am a Rotarian. There are more than 34,000 clubs worldwide. Rotary Club members are volunteering in communities at home and abroad to support education and job training, provide clean water, combat hunger, improve health and sanitation, and eradicate polio. 2) New project in Cambodia (2015) I sent a Cambodian dentist to Japan to train how to cure cavities by DBC products. We will try to cure 100 cavity teeth in local area in Cambodia. 3) Teaching at CAS and KKUIC I am teaching in Thailand for 8 years and 6 years at KKUIC. 4) Internship (2016) I will accept 4 intern students from this class for one month internship at my office in Tokyo. It would start from June to July, 2016. Also, I would help some students who want to be an intern at Japanese companies in Bangkok, Khon Kaen or Shanghai????

Visiting Cambodia1) To help Rotary Club visitors to Operation Smile Cambodia2) Planning to cavity treatment of local people in Cambodia by DBC3) Investigation to buy Dental Clinic in Phnom Penh

The Kingdom of Cambodia Area 181,035km2 (88th) Population 14,952,665 (65th) GDP $14.204billion GDP per capita $931 The Kingdom of Thailand Area 513,120km2 (51st) Population 66,720,153(20th) GDP $424.985 billion GDPper capita $6,572Visit Cambodia

Internship in Tokyo 2015

Important Notice I will go to Cambodia to help our Rotary Club members on 15 ~19 November , 2015. So, I cannot attend the class on 18th November. But, I am arranging for my students to visit Panasonic Khon Kaen which is the one of the most famous global companies in Japan on 18th November. Our office staff will take all students to Panasonic Khon Kaen. Students Please introduce yourselves!Class policies, Schedule, Grading and outlines of this course I am welcoming ideas from students side.

Class Policies 1) This class starts at 9:00AM. Names will be called at 9:20AM. 2If you could not attend the class on/or before 9:20AM, you are deemed to be absent. However, if you give Maki a reasonable reason not to attend the class before class start, you are deemed to be present.

3) Mobile phone and lap top PC must be turned off throughout the class session.

4 Students cannot leave the class room without Makis permission.

5) This class should have one make-up class on 28 November, Saturday due to KKUIC class regulations.

5) No food during class hour 6) Please go to toilet before and / or after class, or during the break, not during the class. 7) No cheating for attendance and plagiarism.. GRADING Midterm exam 30% Final exam 30% In-class Presentations &Discussions and Homework 10% Class attendance & participation 30% ================================ Total 100% Class scheduleClass 1 19 Aug Class 8 14 Oct Class 2 26 Aug Class 9 21 Oct Class 3 2 Sept Class 10 28 Oct Class 4 9 Sept Class 11 4 NovClass 5 16 Sept Class 12 11 NovClass 6 23 Sept Class 13 18 Nov (Visit Panasonic)Class 7 30 Sept Class 14 28 Nov (Sat make-up)Mid term exam Final exam Consultation to Students Please send an e-mail or call me at any date any time. I can meet and talk with you and give my suggestions on study, business and internship etc. E-mail : maki@imc-maki.com Mobile : 098-921-2466 (Thailand)

You should study Global Business for Import & Export Management to help your future life and business! Why study Global Business for Import & Export Management?1) Enhance your employability2) Better preparation for possible expatriate assignments abroad and working for foreign-owned employers in your country3) Stronger competence in interacting with foreign suppliers, partners, and competitors

Course Description To study Basic concept of global business, globalization, informal & formal institutions including cultural differences, international trade theories, knowledge of import & export procedures and management from Text books and Makis real business experiences.

Aims of the Course 1) Students will be able to understand the basic concepts of the Global Business & Globalization and get the basic knowledge of Import and Export Management.

2) Students will be able to understand why Globalization is important in this complicated age.

3) Students will be able to get the basic knowledge to manage Import and export business in various organizations and companies.

.

4) Students will be able to select the best transportation mode from the five transportation modes.

5) Students will be able to understand the cultural differences which is one of the biggest obstacles for Global business.

Course schedule 1 Foundation Understanding the basic concept of the global business and world institutions. I) What is the globalization & global business? II) Informal Institutions III) Formal Institutions Course schedule 2 Tools Acquiring tools to understand the Global Business. I) Theories of International Trade II) Reality of International Trade III) International Monetary System IV) Foreign Exchange

Course schedule 3 Management Studying Import/Export Management and how to increase your employability or start up your import and/or export business at the global marketplace. I) Import & Export Business Management II) How to find the products or services? III) Laws & Regulations IV) Financing

Reading Assignments No textbook but........... Reading assignment will be given time to time from Global Business 2e by Mike W. Peng International Economics 15e by T. Pugel and others.

Other reference books for this course Global Business Management A cross-cultural Perspective by Abel Adekola and Bruno S Sergi 2007 Global and Transnational Business Strategy & Management 2 edition by David Campbell, Jim Hamill and Tony Prurdie

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050352 Global Business for Import & Export Management19th August, 2015 By Yoshio Maki Visiting ProfessorInternational College, Khon Kaen University

9:00 ~12:00 Wednesday http://home.kku.ac.th/yoshio PART I : Foundations Understanding the basic concept of the global business and world institutions.

Preface Declining Trade & Investment Barriers During 1920s and 30s, many nations of the world erected the barriers to international trade and foreign direct investment.

1. Definitions & Basic knowledge International trade occurs when a firm exports goods or services to consumers in another country. Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country. Many of the barriers to international trade took the form of high tariffs on imports of manufactured goods and devaluation . The typical aim of such tariffs was to protect domestic industries from foreign competition. Then many countries took beggar thy neighbor retaliatory trade policies with countries progressively raising trade barriers against each other.

Beggar thy neighbor policy An international trading policy that utilizes currency devaluations and protective barriers to alleviate a nation's economic difficulties at the expense of other countries.

While the policy may help repair an economic hardship in the nation, it will harm the country's trading partners, worsening its economic status. This economic policy is popular one for Mercantilist and to remedy its economic problems by means that tend to worsen the economic problems of other countries.

The policy name is derived from its resulting impact, making a beggar out of neighboring nations. The goal of a Beggar-Thy-Neighbor strategy is to increase the demand for your nation's exports, while reducing your reliance on imports.

This is often executed by devaluing the nation's currency, which will make exports to other nations cheaper.Lecture 2 August 26

China's 'Black Monday' sends markets reeling across the globe - as it happened China has been a major contributor to economic growth and low global inflation for more than two decades.

But tonight, investors around the globe are catching their breath after one of the worst days trading in many years. Theyre now pondering whether today marks the start of a new and alarming phase of the crisis which began some eight years ago.

US dollar drops 21st Aug.,2015 The US dollar has fallen against other major currencies as weak Chinese data stokes fresh jitters about a slowdown in the world's second-largest economy and its impact on global growth.

Exchange rate fluctuation for my business What should I do for the exchange rate fluctuations? Japanese yen is going down since 2012 and more than 125 yen against US dollar and 135 yen against Euro at this moment. I am getting money from Japanese customers by Japanese yen and paying USD & Euro to my suppliers. So, I must buy or reserve the Euro and USD currencies to protect my business.

Euro & USD is going up. I could not find the good timing to change and make a balanced portfolio of my currencies. I should have good balanced percentage of various currencies to get reasonable profit from my business.

What should I do for USD dropping?1) I bought USD100,000 with JPY12,254,3012) I bought HKD100,000 with JPY1,578,9063) I bought USD100,000 with JPY12,080,915 TOP EXPRESS ENT. LTD HKD 8,798,217.64 =USD1,145,000HKD Savings HKD 30,419.41 HKD Current HKD 30,499.96 RMB Trade CNY 169,268.57 EUR Savings EUR 200,001.27 JPY Savings JPY 34,258,271.00 THB Savings THB 0.35 USD Savings USD 410,670.76 Securities HKD 1,361,895.31 Platinum Business HKD 44,072.35 Wish Pharma International HKD 8,852,441.53 =USD1,156,000.00 HKD Savings HKD 8,534.73 HKD Current HKD 4,945.00 RMB Trade RMB 0 EUR Savings EUR 100,000.64 JPY Savings JPY 125,334,901.00 THB Savings THB 0 USD Savings USD 0.21 Portfolio Investors should construct an investment portfolio in accordance with risk tolerance and investing objectives. Think of an investment portfolio as a pie that is divided into pieces of varying sizes representing a variety of asset classes and/or types of investments to accomplish an appropriate risk-return portfolio allocation.

Currency Portfolio For my business, I should have the well balanced currency portfolio. Or I should reserve reasonable amount of foreign currencies at my banks for the payment to my suppliers. I have too much Japanese yen. 2. High Tariffs / Devaluation VS.WTO / FTA and Regional Economic Communities There are two trade policies by countries which are obstacles for globalization and free trade. WTO and FTA would delete these obstacles. 1) Tariffs A tax imposed on imported goods and services. Tariffs are used to restrict trade, as they increase the price of imported goods and services, making them more expensive to consumers.

Average Tariff Rates on Products 1 9 1 3 1 9 5 0 1 9 9 0 2 0 0 0 2013

France 21% 18% 5 . 9 % 3 . 9 % 4.2Germany 2 0 2 6 5 . 9 3 . 9 4.2 Italy 1 8 2 5 5 . 9 3 . 9 4.2Holland 5 1 1 5 . 9 3 . 9 4.2UK 2 3 5 . 9 3 . 9 4.2USA 4 4 1 4 4 . 8 3 . 9 3.1Japan 3 0 - 5 . 3 3 . 9 2.6Thailand 8.3WTO).

The Brettton Woods System & GATT Having learned from this experience, the advanced industrial nations of the West committed themselves after World War II to agree The Bretton Woods System (IMF, World Bank) and removing barriers to the free flow of goods, services, and capital between nations. (GATT-WTO) 2) WTO WTO (159 nations-members ) is the global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the worlds trading nations and ratified in their parliaments.

The goal is to help producers of goods and services, exporters and importers conduct their business. The multilateral trading system is the principle of WTO. However, WTO negotiation was stopped because of conflict between the advanced nations and the developing countries, especially BRICs since Dec. 2011. 3) FTAFree Trade Agreement This is the reason why FTA is poplar among nations and regions now. FTA is bilateral trade negotiation between nations and/or regions.US-EU FTA (TTIP) On 12 March 2013 the European Commission decided to request the Member States' green light to open negotiations for Transatlantic Trade and Investment Partnership with the United States (TTIP), and released an impact assessment on the future of the EU-US trade relations and an in-depth independent study on the potential effects of the EU-US TTIP. The transatlantic relationship also defines the shape of the global economy as a whole. Either the EU or the US is the largest trade and investment partner for almost all other countries in the global economy. The EU and the US economies account together for about half the entire world GDP and for nearly a third of world trade flows.

Total US investment in the EU is three times higher than in all of Asia. EU investment in the US is around eight times the amount of EU investment in India and China together.

EU and US investments are the real driver of the transatlantic relationship, contributing to growth and jobs on both sides of the Atlantic. It is estimated that a third of the trade across the Atlantic actually consists of intra-company transfers.

USAGDP174,190B$(22.3%)EUGDP134,027B$(17.2%)1938B$Export2918B$Export

World GDP 2014 (Million $) World 77,868,768EU 13,402,7471United States 17,419,000 2China 10,360,105 3Japan 4,601,460 4Germany 3,401,0005 United Kingdom 2,941,886 6 France 2,829,192

32Thailand 373,804

JTEPA Negotiations for a Japan - Thailand Economic Partnership Agreement - (JTEPA) began in February, 2004, and the Agreement was signed by government leaders in Tokyo, Japan, on April 3, 2007. The Agreement, which came into force on November 1, 2007, consists of trade in goods, rules of origin of products, trade in services, investment, and the movement of natural persons, as well as cooperation in 9 areas and 7 joint projects. 4) Regional Economic Communities

EU The European Union has delivered more than 60 years of peace, stability, and prosperity in Europe, helped raise our citizens living standards, launched a single European currency (the euro), and is progressively building a single Europe-wide free market for goods, services, people, and capital.

EU member countries1 Austria2 Belgium3 Bulgaria4 Croatia5 Czech 6 Denmark7 Estonia8 Finland9 France10 Germany

11 Greece12 Hungary13 Ireland14 Italy15 Latvia16 Lithuania17 Luxembourg18 Malta19 Netherlands20 Poland

21 Portugal22 Romania23 Slovakia24 Slovenia25 Spain26 Sweden27 United Kingdom28 Cyprus

EFTA The European Free Trade Association (EFTA) is a free trade organization between four European countries. EFTA members are; Liechtenstein Iceland Norway Switzerland

ASEAN The Association of Southeast Asian Nations, or ASEAN, was established on 8 August 1967 in Bangkok, Thailand, with the signing of the Acean Declaration (Bangkok Declaration) by the Founding Fathers of ASEAN, namely Indonesia, Malaysia, Philippines, Singapore and Thailand.

Brunei joined in 1984, shortly after its independence from the United Kingdom, and Vietnam joined ASEAN as its seventh member in 1995. Laos and Burma were admitted into full membership in July 1997 as ASEAN celebrated its 30th anniversary. Cambodia became ASEANs tenth member in 1999.

Aims and Purposes 1. To accelerate the economic growth, social progress and cultural development in the region through joint endeavours in the spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of Southeast Asian Nations;

3. To collaborate more effectively for the greater utilisation of their agriculture and industries, the expansion of their trade, including the study of the problems of international commodity trade, the improvement of their transportation and communications facilities and the raising of the living standards of their peoples; 5) Summit

Sustainable economic growth and free trade by G7 The G7 countries are key actors in international economic relations, and as such they carry great responsibility for creating reliable, sustainable and viable global economic conditions. Dynamic and sustainable growth in industrialized, newly industrializing and developing countries is easier to achieve if those countries are agreed on basic issues around economic development, cross-border trade and an effective, prudent financial market architecture. That is why the G7 will continue to work towards establishing an enabling environment that is stable in the long term in order to promote dynamic, sustainable economic growth. Sound finances, open global markets and a well-functioning labor market have a key role to play in that. The G7 states will together continue to promote international trade.

G7 Summit 2015 Canada Prime Minister Stephen Harper France President Franois Hollande Germany Chancellor Angela Merkel Italy Prime Minister Matteo Renzi Japan Prime Minister Shinz Abe UK Prime Minister David Cameron USA President Barack Obama E U Jean-Claude Juncker Donald Tusk Council G8 Summit 2012Canada Prime Minister Stephen HarperFrance President Franois HollandeGermany Chancellor Angela MerkelItaly Prime Minister Enrico LettaJapan Prime Minister Shinz AbeRussia President Vladimir PutinU K Prime Minister David CameronUSA President Barack ObamaEU Council President Herman Van RompuyEU Commission President Jos Manuel Barroso

3. Devaluation The act of reducing the price (exchange rate) of one nation's currency in terms of other currencies. This is usually done by a government to lower the price of the country's exports and raise the price of foreign imports, which ultimately results in greater domestic production. The short- and long-run consequences of devaluation are described in the entry on the J curve. A government devalues its currency by actively selling it and buying foreign currencies through the foreign exchange market. J Curve effect A theory stating that a country's trade deficit will worsen initially after the depreciation of its currency because higher prices on foreign imports will be greater than the reduced volume of imports.

4. Japan Devaluation

Japan's yen weakened to 125 per U.S. dollar from 2012. This was a critical market level, both psychologically and technically, as investors watch to see if "Abenomics" the policies unveiled by Prime Minister Abe can finally overcome years of deflation and lackluster growth.

What happened by Yen devaluation to my business? Maki Corp is buying Vitamin C injection from Ireland around 180,000 vials a year at Euro 7.0 7.0 x 180,000 vials = 1,260,000 in case of \ 100 = 1 1,260,000 x \100 = \126,000,000 in case of \135 = 1 1,260,000 x \135 = \170,100,000 THB1,350,000 = \44,100,000

1305. Chinas Yuan Devaluation

131 On August 11, 2015, China's devaluation of the Yuan surprised global markets and it extends to 3rd day. The PBOC has now devalued the Yuan fix by 4.65% back to July 2011 lows. The central bank sets a rate for the Yuan each day, and the currency is then allowed to vary plus or minus 2 percent from that figure. Chinese government wants to keep its high economic growth by helping export business. The Yuan depreciation would affect to strengthen Chinese export business, but it would increase the risk of bankruptcy of shadow banks in China which has much US dollar debit. 6. What is a good country in terms of Globalization?

The World CompetitivenessScoreboard 2015 by IMD The World Competitiveness Yearbook (WCY) ranks and analyzes the ability of nations to create and maintain an environment in which enterprises can compete. Based on analysis made by leading scholars and by our own research and experience, the methodology of the WCY thus divides the national environment into four main factors:

Four main factors1) Economic Performance2) Government Efficiency3) Business Efficiency4) Infrastructure

Each of these factors is divided into 5 sub-factors which highlight every facet of the areas analyzed. Altogether, the WCY features 20 such sub-factors. These 20 sub-factors comprise more than 300 criteria.

1~10 out of 60 countries(1) USA 1(4) Hong Kong 2(3) Singapore 3(2) Switzerland 4(7) Canada 5(11) Luxembourg 6(10) Norway 7(9) Denmark 8(5) Sweden 9(6) Germany 1011~20 out of 60 countries (13) Taiwan 11(8) UAE 12(19) Qatar 13(12) Malaysia 14(14) Netherlands 15(15) Ireland 16(20) New Zealand 17(17) Australia 18(16) United Kingdom 19(18) Finland 20

21~30 out of 60 countries(24) Israel 21(23) China Mainland 22(28) Belgium 23(25) Iceland 24(26) Korea 25(22) Austria 26(21) Japan 27(34) Lithuania 28(33) Czech Republic 29(29) Thailand 30

Class 3 2nd September I need teams for presentations.Each team has around 8 students.2) Each team should have a leader.3) 5 minutes presentation4) Grading ABCD Presentation by students1) What is the beggar thy neighbor policy?2) What is the purpose of Asean?3) What is JTEPA between Thai & Japan?4) What is the Devaluation?5) Why WTO was established?

I) What is the Globalization & Global business?

1. Drivers of GlobalizationTwo macro factors seem to underlie the trend toward greater globalization. The first is the decline in barriers to the free flow of goods, services, and capital that has occurred since the end of World War II. The second factor is technological change, particularly the dramatic developments in recent years in the following three technologies.

Communication Satellite, optical fiber, wireless technologies and Internet

Information processing microprocessor Transportation technologies commercial jet aircrafts & super- freighters & the introduction of containerization

History of containerization I believe containerization had changed the way of transportation of the goods dramatically just less than 60 years. Almost from the first voyage, use of this method of transport for goods grew steadily and now containerships would carry about 60% of the value of goods shipped via sea. (There were several similar ideas since 1792.)

In 1955, Malcom P. McLean, a trucking entrepreneur from North Carolina, USA, bought a steamship company with the idea of transporting entire truck trailers with their cargo still inside. (This company was growing and named Sea-Land Service. Now it was bought by Maersk Line which is the biggest shipping company in the world.He realized it would be much simpler and quicker to have one container that could be lifted from a vehicle directly on to a ship without first having to unload its contents. At his death, US secretary of Transportation made a following statement. "Malcom revolutionized the maritime industry in the 20th century. His idea for modernizing the loading and unloading of ships, which was previously conducted in much the same way the ancient Phoenicians did 3,000 years ago, has resulted in much safer and less-expensive transport of goods, faster delivery, and better service. We owe so much to a man of vision, the father of containerization,"

2. Global Business & Globalization 1) What is Global Business? International business is defined as business that engage in international economic activities. Global business is defined as business around the globe. It means that Global business includes both international business and domestic business activities. 2) What is the globalization? Globalization of Economies : The shift toward a more integrated and interdependent world economy. It is divided into three factors like as Production, Markets and Strategy.

a. Globalization of Markets The merging of historically distinct and separate national markets into one huge market, because of increasing homogenization of consumer tastes and product preferences in certain markets.

Homogenization Although there are arguments, we can see evidences of increasing of homogenization of consumer tastes and product preferences in different countries. This homogenization is helping to create a global market. SONY PlayStation, Apple iPhone, Coca-Cola, McDonald, KFC, Microsoft Windows,.

MNE vs SME Multinational enterprises (MNE) like Apple, TOYOTA, SONY, Coca-Cola and KFC are facilitators of globalization. They are creating the global market by offering the same basic products (global norm / global standard) worldwide.

Also, many SME ( less than 100 employees) are creating the global market. In USA, 90% of exporters are SME and more than 20% of share of US export. In Germany, SME (less than 500 employees) have about 30% share of nations exports.

Global competitions In many global markets, the same company confront each other as competitors in nation after nation. SONY vs Nintendo vs Microsoft Apple vs Samsung Toyota vs FORD vs Honda vs Volkswagen Mercedes Benz vs BMW vs Lexus Boeing vs Airbus Coca Cola vs PepsiCo 7eleven vs. Family mart

If one company move into Thailand that is not currently served by its rivals, those rivals are to follow to prevent their competitor from gaining an advantage. Thus, greater uniformity replaces diversity. For many companies, there is only the global market. b. Globalization of Production : The increasing globalization of productive process, with firms choosing to concentrate or disperse value-adding activities around the world according to the local advantages to be obtained.

Outsourcing to foreign countries 30% of Boeing 777 by value is built by foreign countries. 8 Japanese suppliers, 1 Singapore, 3 Italy.. 65% of new Boeing 787 Dreamliner by value would be built by foreign companies and 35% will be manufactured by 3 Japanese companies. 172 Because these suppliers are the best in the world at the particular activity. Boeing also outsources some production to foreign countries to increase the chance that it will win significant orders from airlines based in that countries. What is a good company in terms of globalization? Multinational Corporation MNC, MNE or International Corporation is a corporation that is registered or operates in more than one country. It is a large corporation which both produces and sells goods or services in more than one country. Now, it is popular to be called a Global Company. What is SME? Fortune 500 Global Company 2012 Sales( $ million) Profit ($ million)1 Royal Dutch Shell 484,489 30,9182 Exxon Mobil 452,926 41,0603 Wal-Mart Stores 446,950 15,6994 BP 386,463 25,7005 Sinopec Group 375,214 9,4536 China National Petroleum 352,338 16,3177 State Grid 259,142 5,6788 Chevron 245,621 26,8959 ConocoPhillips 237,272 12,43610ToyotaMotor 235,364 3,591

11 Total 231,580 17,06912 Volkswagen 221,551 21,42613 Japan Post Holdings 211,019 5,93914 Glencore International 186,152 4,04815 Gazprom 157,831 44,46016 E.ON 157,057 -3,08517 ENI 153,676 9,53918 ING Group 150,571 6,59119 General Motors 150,276 9,19020 Samsung Electronics 148,944 12,059Fortune 500 Global Company 2015 1. Walmart Bentonville, AR USD485,657million2. Sinopec Group Beijing, China3. Royal Dutch Shell The Hague, Netherlands4. China National Petroleum, Beijing, China5. Exxon Mobil , Irving, TX 6. BP, London, Britain7. State Grid ,Beijing, China8. Volkswagen ,Wolfsburg, Germany9. Toyota Motor, Toyota, Japan10. Glencore, Baar, Switzerland 11. Total Courbevoie, France12. Chevron, San Ramon, CA13. Samsung Electronics ,Suwon, Korea14. Berkshire Hathaway, Omaha, NE15. Apple, Cupertino, CA16. McKesson, San Francisco, CA17. Daimler, Stuttgart, Germany18. Industrial & Com. Bank of China , Beijing, China19. EXOR Group, Turin, Italy20. AXA , Paris, France

21. General Motors, Detroit, MI22. E.ON , Dsseldorf, Germany23. Phillips 66, Houston, TX24. General Electric, Fairfield, CT25. ENI, Rome, Italy26. Gazprom, Moscow, Russia27. Ford Motor , Dearborn, MI28. Petrobras , Rio de Janeiro, Brazil29. China Construction Bank ,Beijing, China30. CVS Health, Woonsocket, RI

The seven sisters Major or the Seven Sisters are controlling 85% of oil in the world oil reserves in 1970s. However, the increasing influence of the OPEC make their powers decline now. Royal Dutch Shell Exxon Mobile (+Standard) BP Chevron (+Gulf Oil + Texaco)

2005BP4 New seven sistersChina National Petroleum Corporation(China) Gazprom (Russia)National Iranian Oil Company (Iran)Petrobras(Brazil)PDVSA (Venezuela)Petronas(Malaysia)Saudi Aramco (Saudi Arabia)

Top Banks in the World 2014 (USD trillion )Rank Bank Country Total assets 1 ICBC China 2.95 2 HSBC UK 2.68 3 Deutsche Bank Germany 2.60 4 Crdit Agricole France 2.58 5 BNP Paribas France 2.51 6 Mitsubishi UFJ Japan 2.49 7 Barclays PLC UK 2.41 8 JPMorgan Chase USA 2.39 9 China Construction Bank China 2.3610 Japan Post Bank Japan 2.12Fortune 500 by country 2012U.S. 132 companiesChina 73Japan 68France 32Germany 32Britain 26Switzerland 15Canada 11

Thailand 1Fortune 500 by country 20151 United States 128 companies2 China 983Japan 544 France 315United Kingdom 296Germany 287South Korea 178Netherlands 139Switzerland 1210Canada 11

Japan 1~10 2012 Sales( $million) 1Toyota Motor 10Toyota 235,3642Japan Post Holdings 13Tokyo 211,0193N T & T 29Tokyo 133,0774Hitachi 38Tokyo 122,4195JX Holdings 41Tokyo 119,2586Nissan Motor 42Yokohama 119,1667Honda Motor 64Tokyo 100,6648Panasonic 66Osaka 99,3739Nippon Life Insurance 74Osaka 90,78310Sony 87Tokyo 82,237 Japan 1~10 2015 9. Toyota Motor 38. Japan Post Holdings 44. Honda Motor 59. Nissan Motor 65. N T & T89. Hitachi92. JX Holdings 110. Softbank Group 116. Sony 125. Marubeni

Thailand Million USD 2015 PTT 93 Bangkok 87,299

2012PTT 95 Bangkok 79,690

PTT Public Company Limited is a Thai government owned oil and gas company. This is a listed company but government has 52.32% (actually 68% )of share. The steep decline in oil prices is what has really caused PTT trouble. Profits dropped 44% in 2014 due to oil stock losses and an assortment of write-downs. Mylan My main business to import Mylan IV Vitamin C from Ireland and selling to Asian market. Mylan is a Fortune 500 company. In 2014 Mylan was ranked number 377 on the Fortune 500 list, making it the 377th largest company in the United States when judged by revenue. Mylan achieved revenue of $6,909 million in 2010 and earned a profit of $624 million.

Global products In many cases like Apple, Lenovo, Sony, Toyota, Samsung & IBM, it is becoming irrelevant to talk about American products, Chinese or Japan Products. It should be called Global products.

However, still we are on the way to globalization. We have many impediments like as formal & informal barriers to trade between countries, barriers to foreign direct investment, transportation costs, and issues associated with economic and political risk. Global Localization It is very important to know that very significant differences still exist among national markets like as consumer tastes and product preferences, distribution channels, culturally embedded value system, business systems and legal regulations.

Globalization needs localization! Mitsubishi Automobile will sell different car models depending on local fuel costs, income levels, traffic congestions, and cultural values. Sedan vs. Pickup Localization- examples Samsung has famous two products for special specification for the country localization.1) Air conditioner with mosquito killer by radio wave. --- Indonesia 2) Refrigerator with a lock system to avoid snitching food by maid. ---India c. Globalization of Strategy; The plans developed by an organization to target growth on a global level for sales of products or services. Global companies should configure and coordinate its strategy globally.

A global strategy will normally include a global brand name and products presence in major market throughout the world, productive activities located so as to gain maximum advantage, and coordination of strategy and activities throughout the world. Example Global strategy of SME Not limited to giants like Toyota, Boeing, Apple, Samsung and Sony, many much smaller firms are getting into the act.

Allerhand Bag Company Allerhand, German mother bag company (US$25million/annual sales) moved its head office from Hamburg, Germany to Hong Kong and started to manufacture their products in China and Vietnam. (Designed in Germany, fabric materials from European countries) The company has dispersed its manufacturing and design process to different locations around the world to take advantage of favorable skill based and cost structure. By dispersing its manufacturing and design activities, Allerhand established a competitive advantage for itself in the global marketplace for mother bags. They were exporting to EU countries, Japan, Singapore, Malaysia, Australia.. They were growing every year.. Allerhand had a big trouble with a Chinese factory in 2013. They were producing new series at a factories in Shenzhen. Factory cost was increasing more than 10% every year and she decide to move to other local factories. However, new factorys QC was very bad and she received a lot of defective items.

She finally decided to give up to manufacture her bags in China and could not find new location. My company has stopped selling Allerhand product on May 31st , 2015. We really do not know when we could start this business again. The owner is in US for her volunteer activities now.Allerhand Videohttps://www.youtube.com/watch?v=VOGJ4DLH4uw&feature=player_detailpage Globalization vs. Internationalization Globalization, considered by many to be the inevitable wave of the future, is frequently confused with internationalization, but is in fact something totally different. Internationalization refers to the increasing importance of international trade, international relations, treaties, alliances, etc. Inter-national, of course, means between or among nations. The basic unit remains the nation, even as relations among nations become increasingly necessary and important. Globalization refers to global economic integration of many formerly national economies into one global economy, mainly by free trade and free capital mobility, but also by easy or uncontrolled migration. It is the effective erasure of national boundaries for economic purposes.Conclusion Despite these trends, we must be careful not to overemphasize their importance. While modern communication and transportation technologies are, ushering in the global village, very significant national differences remain in culture, consumer preferences, and business practices.