International Business Final - Complete Solutions (Answered) Define Globalization A trend towards greater economic, cultural, political and
... [Show More] technological interdependence. What happens when denationalization occurs? National boundaries become less important. What is the difference between denationalization and internationalization? The nature of interdependent relations. Denationalization = outgrowing national borders. They cooperate for their wellbeing. Internationalization = source of interdependence comes from pressure. What is meant by the Globalization of Markets? The convergence of buyer preferences, emergences of global producers, new market opportunities. Globalization of Markets helps in... Marketing and Production What is the Globalization of Production? Producing at locations where it is low cost of quality maximizing. (Access to low cost workers, access expertise) Globalization of production efficiency lowers... Costs of production Name 3 factors causing Globalization. (1) Falling barriers to investment and trade (2) Technological innovations (3) Increase in Global Competition What is the WTO? A contract between member nations to maintain fair and open trade policies. What are the 3 goals of the WTO? (1) Help free flow of trade (2) Help negotiate further opening of markets (3) Settle trade disputes between members Name 4 impacts of technology innovation (1) Accelerate Data (2) Accelerate Good (3) Equipment (4) People Globalization impacts countries through....(5) (1) Jobs and Wages (2) Income inequality (3) Labor and environment (4) National sovereignty (5) Culture 3 points to support "Globalization costs Jobs and lowers wages" (1) Eliminates Jobs in developed nations (2) Wages lower in developed nations (3) Exploits workers in developing nations 3 points to support "Globalization creates jobs and boosts wages" (1) Increases wealth and efficiency (2) Generates labor market flexibility (3) Creates jobs in developing nations Name 3 types of inequality as an effect of Globalization. (1) Inequality within nations (2) between nations (3) Global inequality Name 2 key players in International Business International corporations, entrepreneurs and small businesses Multinational corporations are important in Globalization because... They employ many people Entrepreneurs are important in Globalization because... They are more active in international business (because of technology) What is culture? Backgrounds, assumptions, expectation, ways of communication, values beliefs, rules. Define ethnocentricity. The belief that one's culture is superior to another’s. Define Cultural Literacy. Knowledge and understanding of another’s culture which helps improve collaborative work. What is National Culture? Mostly linked to national territory. Governments try to promote this. What is subculture? Groups of people who share unique ways of life within a larger, dominant culture. Sometimes exists across national borders. Define culture. Set of values, beliefs, rules and institutions help by a specific group of people. What are 4 aspects in creating a Global-Mind-Set? (1) Cultural Adaptability (2) Bridging the gap (3)Building global mentality (4) Flexibility Name 5 aspects of culture to consider when launching a product. (1) Aesthetics (2) Social structure (3) Values and attitudes (4) Manners and customs (5) Physical environments Name 2 components of Aesthetics. Symbols and colours, and wording. Name 3 types of attitudes towards.......that can affect business (cultural aspects) (1) Time (2) Work (3) Cultural change Define Manners Manners are appropriate ways of behaving, speaking, dressing. Define Customs Customs are habits or ways of behaving which are passed down through generations. Name 3 important elements that differ across cultures. (Social ____(1,2,3)_____. Social Group, Social Status, Social Mobility. Name 2 types of communication that can be misinterpreted (1) Spoken language (2) Body Language
Name 6 aspects of the Kluckhohn-Strodtbeck Framework. (1) Relation to Nature (2) Material or spiritual (3) Time orientation (4) Responsibility to others (5) Trust and Control (6) VIew of personal space Name the 4 points of examining culture for the Hofstede Framework. (1) Individualism vs. Collectivism (2) Power Distance (3) Uncertainty avoidance (4) Achievement vs. Nurturing Define Political Systems Structure, Processes, and Activities by which a nation governs itself. What are the extreme right, middle and left political ideologies? Totalitarianism Pluralism Anarchism How are leaders selected in a Democracy? Elected by people or by representatives. Name 4 Freedoms that should be provided with Democracy. (1) Expression (2) Periodic Elections (3) Minority Rights (4) Property Rights How are leaders chosen in a Totalitarian System? Not by the people. What are 3 features of a Totalitarian government? (1) Imposed authority (2) Lack of constitutional guarantees (3) Restricted participation Name 3 types of secular Totalitarian Systems? Communist, Tribal, Right-Wing What is the difference between Communism and Socialism? Communism: Social and economic equality for all. Socialism: Government owns and controls all types of economic activity. Ownerships of Factors of Production and government decides what to produce. What is considered as Political Risk? The likelihood that a government or society will undergo political change that negatively affects business. List 5 examples of Political Risk. (1) Corrupt/Poor political leadership (2) Frequent changes in the form of government (3) Unstable political system (4) Conflict among race, religion (5) Poor relations with other countries Name 5 events that can cause political risk. (1) Conflict/Violence (2) Terrorism/Kidnapping (3) Property Seizure (4) Policy Change (5) Local Content Requirements List 3 methods to help manage political risk for a business. (1) Adaptation (2) Information Gathering (3) Influencing Local parties. List 5 ways for a company to completely adapt to political risk? (1) Localization (2) Development assistance (3) Partnership (4) Insurance (5) Local Equity and debt What is a legal system? Consists of laws and regulations, processes by which those are enforced. What are legal systems influenced by? Cultural variables like religion, social structure. Name 3 types of legal systems. [Show Less]