Business International Test Notes

Topics: European Union, Geert Hofstede, International trade Pages: 5 (1455 words) Published: March 25, 2013
Eduardo Napoles Jr.3/19/13
BUS 141 (P) Saltz

1. Globalization refers to in which activities of large number of business enterprises is carried out in many different locations across national boundaries. It is much more than just importing or exporting from one country to another. True globalization involves one firm procuring form, manufacturing in, and selling in many different countries. There has been an increasing trend in the world towards globalization is characterized by trends such as * Increased trade across national boundaries.

* One company having subsidiary companies and plants in many countries. * One company selling its products in many different countries. * Growth of joint ventures and collaborations between companies from different countries. Lowering of trade barriers and simplified import and export procedures.

Globalization offers many advantages to the people and businesses. These include * Greater employment opportunities for people.
* Availability of greater variety of goods and services to the consumers. * More competitive price to the competitors.
* Ability of companies to achieve lower costs.
* Access to bigger markets to business firms.
* Faster and wider spread of new technologies across the world.

Globalization has some disadvantages also:
* Unrestricted globalization can hamper the development of less developed countries. * Smaller firms may lack the resources to compete internationally and therefore may be forced out of business. * Countries become increasingly dependent on other countries for meeting their needs for goods and services. This can become a major disadvantage in situations like war.

* I do not believe the advantages outweigh the disadvantages because it’s a 50-50 split. The consumers benefit a lot from globalization, as do firms with more capital to invest and compete immediately. Then again this is not the case for small firms or less developed countries. We live in a world where progress is the only option, so this was inevitable. I do not believe there is a way to reduce this because globalization is a one-way tale.

2. Individualism is a belief that everyone needs to look after themselves and support themselves. Collectivism is a value or belief where you think of society first and what societies needs are. You make sacrifices for the benefit of society as a whole instead of thinking only of yourself. These are not compatible, for example in the advantages and disadvantages of globalization it’s simple to understand that firms take look to progress with an individualism mentality. Individualism has always been gaining more ground and it still is up to today. This is bad and good for international commerce because of the advantages and disadvantages once again. Less developed countries are going to have to find a way to benefit from these bigger firms establishing themselves in their country to build capital and compete. Innovation is always key as well.

3. The four are power distance, individualism versus collectivism, uncertainty avoidance, and masculinity versus femininity. Power Distance: This dimension focuses on how a society deals with the fact that people are unequal in physical and intellectual capabilities. According to Hofstede, high power distance are found in that let inequalities grow over time into inequalities of power and wealth. Low power distance is found in societies that try to play down such inequalities as much as possible. 
Individualism versus Collectivism: This dimension focuses on the relationship between the individual and his/her fellows. In individualistic societies, the ties between individuals are loose, and individual achievement and freedom are highly valued. In societies where collectivism is emphasized, the ties between individuals are tight. 
Uncertainty Avoidance: This dimension measures the extent to which socialize their...
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