Geopolitics and International Business

An Introduction
Faculty: Dr.MV lakshmi Professor of International Relations

GPE/Lecture Session 2/July 9th, 2011

Geopolitics & International Business

Presentation Structure
1.1 Introduction 1.2 1.3 1.4 1.5 1.6 Geopolitics Concept, Definition, Nature and Importance IB Concept, Definition, Nature and Scope Redefining Geopolitics for the 21st century A Geopolitical Framework for International Business Summing Up

GPE/Lecture Session 2/July 9th, 2011

Geopolitics & International Business

1.1 Introduction Why study Geopolitics for IB? What is Geopolitics? What is International Business? Geopolitics grows as a separate field of study 1899 and later Growth of IB as an academic discipline 1960s, 1970s,1980s,1990s IB is an interdisciplinary field of study
GPE/Lecture Session 2/July 9th, 2011

1.1 Introduction Why study Geopolitics for IB?

The Global Business Environment is complex with multiple actors and influences at the global, international, regional, national and local level.

GPE/Lecture Session 2/July 9th, 2011

Why study geopolitics?

Geopolitical analysis has nearly always been the epitome of a truly global perspective. Companies doing business internationally are grappling with political issues that sometimes surprise even the most experienced.- (PWC,2010)
GPE/Lecture Session 2/July 9th, 2011

Why study geopolitics?

Fully understanding the global geopolitical ecosystem is.. key. Without knowledge of different national political systems, regulatory networks and business cultures, an executive is working at a disadvantage.
Leadership: What Essential Skills Are Required for the New Reality.

GPE/Lecture Session 2/July 9th, 2011

Geopolitics & International Business

1.2 GEOPOLITICS: Concept, Definition, Nature and Importance Evolution of the concept of Geopolitics - The term Geopolitics first coined by Rudolf Kjellen, a Swedish Political Scientist - As a field of study, Geopolitics came into prominence inspired by the work of two major nineteenth-century scholars: Alfred Thayer Mahan (1840-1914) and Sir Halford John Mackinder (1861-1947) - Another Geopolitical theoreticians - Friedrich Ratzel (1844-1904) - widespread use in the 1930s

GPE/Lecture Session 2/July 9th, 2011

Geopolitics & International Business

1.2 GEOPOLITICS: Concept, Definition, Nature and Importance Evolution of the concept of Geopolitics.. - Lebensraum - Heartland Theory - Rimland - Geopolitics is a serious field of inquiry (despite its unfortunate association with Nazi Germany)
GPE/Lecture Session 2/July 9th, 2011

Geopolitics & International Business

1.2 GEOPOLITICS: Concept, Definition, Nature and Importance. Understanding the importance of the concept of Geopolitics - The various dimensions of geopolitics coalesce around the significance of the location of states on the world map - A state that is landlocked between two other states is likely to have very different foreign policy objectives from one that is surrounded by sea or natural barriers - For geopolitical analysts, there is also an important connection between location, wealth(resources), and power

GPE/Lecture Session 2/July 9th, 2011

Geopolitics & International Business

1.2 GEOPOLITICS: Concept, Definition, Nature and Importance. Importance of Geopolitics.. - At the heart of geopolitical analysis is a belief that states economic and military capability, their position in the hierarchy of states, and how they relate to their neighbours are the consequence of geographical factors - In International Relations, geography is destinybut has this changed in the era of 21st century globalization? - There are many ways of interpreting state behaviour Geopolitics is one of them

GPE/Lecture Session 2/July 9th, 2011

Geopolitics & International Business

1.2 GEOPOLITICS: Concept, Definition, Nature and Importance.
Some definitions: Geopolitics is the study of the influence of geographic factors on state behaviour how location, climate, natural resources, population, and physical terrain determine a states foreign policy option and its position in the hierarchy of states

The study of the effects of economic geography on the powers of the state - http://www.webdictionary.co.uk/definitio

GPE/Lecture Session 2/July 9th, 2011

Geopolitics & International Business

1.2 GEOPOLITICS: Concept, Definition, Nature and Importance.

`Geopolitics` is the study that analyzes geography, history and social science with reference to spatial politics and patterns at various scales (ranging from home, city, region, state to international and cosmopolitics). It examines the political, economic and strategic significance of geography, where geography is defined in terms of the location, size, function, and relationships of places and resources. (http://en.wikipedia.org/wiki/Geopolitics

GPE/Lecture Session 2/July 9th, 2011

Geopolitics & International Business

1.2 GEOPOLITICS: Concept, Definition, Nature and Importance.

Geopolitics is: 1. The study of the relationships among politics and geography, demography, and economics; especially, with respect to the foreign policy of a nation. 2. The influence of geographic factors, population distribution, and natural resources on a nation's foreign policy; that is, the efforts of a nation to control a canal, trade route, oil supply, etc...
(Found on http://www.wordinfo.info/words/index/inf)
GPE/Lecture Session 2/July 9th, 2011

Geopolitics & International Business

1.3 INTERNATIONAL BUSINESS - Concept, Definition, Nature and Scope

Evolution of the concept of International Business - IB as old as mankind - Early developments in international trade provide basis for understanding the concept of todays IB operations - No nation inhabits an economic vacuum: its industries, commerce, technology, standard of living, and all other facets of its economy are related to the economies of foreign nations by complex flows of goods, capital, technology and enterprise

GPE/Lecture Session 2/July 9th, 2011

Geopolitics & International Business

1.3 INTERNATIONAL BUSINESS - Concept, Definition, Nature and Scope

Some Definitions of International Business

In its simplest form, any business transaction(including investments) that involves persons or firms of more than one country may be described as international business International Business includes international trade in goods and services and investments.
GPE/Lecture Session 2/July 9th, 2011

Geopolitics & International Business

1.3 INTERNATIONAL BUSINESS - Concept, Definition, Nature and Scope

Some Definitions. International business is a field of study and practice that encompasses public and private business activity affecting the persons or institutions of more than one national state, territory.. - Robinson,1978 The term international business describes a broad spectrum of business activities that transcends national frontiers.
GPE/Lecture Session 2/July 9th, 2011

Geopolitics & International Business

1.3 INTERNATIONAL BUSINESS - Concept, Definition, Nature and Scope

Changing nature of International Business Expanding scope of International Business in the era of 21st century globalization Growing complexity of the International Business Environment and the national business environments Need for a Geopolitical Framework for understanding the International Business environment
GPE/Lecture Session 2/July 9th, 2011

Geopolitics & International Business

1.4 Redefining Geopolitics for the 21st Century The paradigm shift in Geopolitics in the post cold war era Globalization, Regionalism, Bilateralism The geo-economic shifts of the 21st century and the changing geopolitical equations Evolving geopolitical strategies to match the geoeconomic realities
GPE/Lecture Session 2/July 9th, 2011

Geopolitics & International Business

1.5 A Geopolitical Framework for International Business

Geopolitics encompasses the social, political, cultural, demographic and economic dimensions of the external environment Nation-States are highly interdependent International Relations and International Business have acquired new dynamism
GPE/Lecture Session 2/July 9th, 2011

It is imperative for developing a geopolitical framework for understanding the conduct of International Business

Despite the fact that most, if not all, of the worlds problems are interdisciplinary, informed citizens, who can think broadly across disciplines, will be those who can contribute to sensible action for local problems with a global flow-on
- Knowledge That Counts in a Global Community Exploring the Contribution of Integrated Curriculum (Leonie Rennie, Curtin University, Australia, Grady Venville, University of Western Australia, Australia and John Wallace University of Toronto, Canada

GPE/Lecture Session 2/July 9th, 2011

Geopolitics & International Business

Summing Up

GPE/Lecture Session 2/July 9th, 2011