International Business Unit 1 and 2

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1.Define globalization and international business and explain how they affect each other. 2.Why companies engage in international business and why the growth of international business has accelerated? 3.Explain the major causes of cultural differences and change. 4.Discuss the problems and methods of learning about cultural environments. 5.List and describe the various modes of international business as described in the text. 6. What is the different between licensing and franchising?

7.What is Management contracts?
8. What is Turnkey operations?
9. Explain importing and exporting.
Explain the direct and portfolio investment.

Answers:
Globalization is the ongoing process that deepens and broadens the relationships and interdependence among countries. International Business is a mechanism to bring about globalization.
Companies engage in international business to expand sales, acquire resources, and diversify or reduce risks. Due to an increase in and expansion of technology, liberalization of cross-border trade and resource movements, development of services that support international business, growing consumer pressures, increased global competition, changing political situations, and expanded cross-national cooperation the growth of international business has accelerated.

3.Cultural norms are passed down from generation to generation. Cultures change sometimes due to increased exposure to cultural norms of other countries, this type of change is referred to as cultural imperialism. 4.Problems in communications may arise when moving from one country to another, even though both countries share the same official language, as well as when moving from one language to another. In order to learn about cultural environments, companies need to treat learning as a two-way process and transfer knowledge from host countries back home as well as from home to host countries. 5.A company can engage in international business through various...
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