INTERNATIONAL BUSINESS
international business relates to any situation where the production or distribution of goods or services crosses country borders.
true
the shift toward a more interdependent and integrated global economy—
creates greater opportunities for international business
Globalization
globalization can take place in
terms of ____, where trade barriers are falling and buyer preferences are changing.
markets
Globalization can also be seen in terms of ____, where a company can source goods and services easily from other countries.
production
encompasses a full range of cross-border exchanges of goods, services, or resources between two or more nations
International business
A knowledge of both strategic management and entrepreneurship will enhance your understanding of international business
true
It is the body of knowledge
that answers questions about the development and implementation of good strategies and is
mainly concerned with the determinants of firm performance
Strategic management
is the central, integrated, and externally oriented concept of how an organization will achieve its performance objectives.
strategy
What is the basic tool of strategy?
SWOT
The SWOT tool helps you take stock of an organization’s internal characteristics
True
Internal part of SWOT tool
Strength, weakness
an organization’s internal characteristics—
its strengths and weaknesses—to formulate an action plan that builds on what it does well
while overcoming or working around weaknesses.
true
helps you assess those environmental conditions that favor or threaten the organization’s strategy.
opportunities, threats
defined as the recognition of opportunities (i.e., needs,
wants, problems, and challenges)
use or creation of resources to implement
innovative ideas for new, thoughtfully planned ventures.
Entrepreneurship
An ___ is a person who
engages in entrepreneurship.
entrepreneur
like strategic management, will help you to think about the opportunities available when you connect new ideas with new markets
Entrepreneurship
____ is an individual or organization whose interests may be affected as the result of what another individual or organization does.
stakeholder
is a
technique you use to identify and assess the importance of key people, groups of people, or
institutions that may significantly influence the success of your activity, project, or business.
Stakeholder analysis
international business student and future international business
person, you can identify the people and organizations that might have an interest in international business if their interests are affected now or in the future by it.
true
Examples of international business stakeholders include
1. employees
2. managers
3. businesses
4. governments
5. nongovernmental organizations.
true
A ____ can be a person or organization engaged in commerce with the aim of achieving a profit.
business
Business profit is typically gauged in financial and economic terms.
true
sells products and services that are sourced from other countries;
importer
sells products and services in foreign countries that are sourced from its home country.
exporter
Beyond importing and exporting, some organizations maintain offices in other countries; this forms the basis for their level of ___
foreign direct investment
means that a firm is investing assets directly into a foreign country’s buildings, equipment, or organizations.
foreign direct investment
In some cases, these foreign offices are carbon copies
of the parent firm; that is, they have all the value creation and support activities, just in a
different country.
true
In many cases, the choice of
foreign location generates unique advantages, referred to as
location advantages
include better access to raw materials, less costly labor, key suppliers, key customers, energy, and natural resources.
Location advantages
is generally considered to be the body of people that sets and administers public policy and exercises executive, political, and sovereign power through customs, institutions,
and laws within a state, country, or other political unit.
government
is an agreement signed by the governments of the United States, Canada, and Mexico to create a trade bloc in North America to reduce or eliminate tariffs among the member countries and thus facilitate trade.
North American Free Trade
Agreement (NAFTA)
include any nonprofit, voluntary citizens’ groups that are organized on a local, national, or international level.
nongovernmental organizations
Government and nongovernmental organizations also comprise international business.
true
globalization refers to the shift toward a more
interdependent and integrated global economy. This shift is fueled largely by
(1) declining
trade and investment barriers
(2) new technologies, such as the Internet.
true
The flat-world view is largely credited to ___ and his 2005 best seller, The World Is Flat
Thomas Friedman
The flat-world view is largely credited to Thomas Friedman and his 2005 best seller, _____
The World is Flat
Many people consider globalization a modern phenomenon, but according to Friedman, this is its _____.
third stage
GLOBALIZATION 1.0
• 1492 - 1800
• Started with Columbus’s discovery of the New World and
• Driven
by nationalism and religion, this lengthy stage was characterized by how much INDUSTRIAL
POWER countries could produce and apply.
true
GLOBALIZATION 2.0
• 1800 to 2000
• It was disrupted by the Great Depression and both
World Wars and was largely shaped by the emerging power of huge, multinational
corporations.
true
• Grew with the European mercantile stock companies as they
expanded in search of new markets, cheap labor, and raw materials.
• It continued with
subsequent advances in sea and rail transportation.
• This period saw the introduction of
modern communications and cheaper shipping costs.
Globalization 2.0
GLOBALIZATION 3.0
• began around 2000
• with advances in global electronic interconnectivity that allowed individuals to communicate
as never before.
true
nations dominated global expansion.
Globalization 1.0
was driven by the ascension of multinational companies, which pushed global development.
Globalization 2.0
major software advances have allowed an unprecedented number of people worldwide to
work together with unlimited potential.
Globalization 3.0
The fall of the Berlin
Wall ended old-style communism and planned economies. Capitalism ascended.
11/9/89: When the walls came down and the windows went up.
Internet browsing and e-mail helped propel the Internet by making it commercially viable and user friendly.
8/9/95: When Netscape went public.
With more powerful, easier-to-use software and improved connectivity, more people can
share work. Thus, complex projects with more interdependent parts can be worked on
collaboratively from anywhere.
Work-flow software: Let’s do lunch. Have your application talk to my application.
Providing basic software
online for free gives everyone source code, thus accelerating collaboration and software
development.
Open-sourcing: Self-organizing, collaborative communities.
Ghemawat’s research suggests that to study “barriers to cross-border economic activity” you
will use a ___ analysis.
cage
refers to a people’s norms, common beliefs, and practices
Culture
refers to differences based in language, norms, national or ethnic identity, levels
of trust, tolerance, respect for entrepreneurship and social networks, or other country
Cultural
distance
Bilateral trade flows show that administratively similar countries
trade much more with each other.
Administration
refers to historical governmental ties, such as those between India and the United Kingdom.
Administrative distance
This is perhaps the most obvious difference between countries. You can see that the market for a product in Los Angeles is separated from the market for that same product in Singapore by thousands of miles
Geography
Ghemawat’s CAGE framework covers four factors—culture, administration, geography, and
economics.
true
portrays a world that is “semiglobalized” and “multidomestic,” where global
strategy begins with noticing national differences.
Ghemawat
The field of ethics is a branch of philosophy that seeks virtue. ___ deals with morality about what is considered “right” and “wrong” behavior for people in various situations.
Ethics
Which action results in the most good and least harm
utilitarian approach
Which action respects the rights of everyone involved?
Rights-based approach
Which action treats people fairly?
Fairness or Justice approach
Which action contributes most to the quality of life of people affected
common good approach
Which action embodies the character strengths you have
virtue approach
Could you comfortably explain your decision to your mother? To a man on Street? on television?
Test your decision
once u've made a decision, implement it
Just do it–but what did you learn?