Final Review for International Business
C1: Globalization and international business
Globalization refers to the trend toward greater economic, cultural, political, and technological interdependence among national economies. Reduction of barriers to the movement of trade, capital, technology, and people. Has two facets:1. Globalization of Markets; the merging of historically distinct and separate national markets into one huge global marketplace. Benefits: cost, new market opportunities, levels uneven income streams. 3 causes of globalization are falling trade barriers, same basic products worldwide, convergence of tastes and preferences 2. Globalization of production; access to lower-cost workers, technical expertise, production input eg. Resources. Why companies engage in ‘IB’; to expand sales (potential market and profit), to acquire resources (low cost, better products, ksa), diversify or reduce risk. Four Elements of IB ESSAY!!1. The forces of globalization (influence every aspect of the global business environment) 2. The international business environment (influence how firms conduct their operations) 3. The national business environments (unique characteristics that cause synergies but tension as well)4.International firm management (managing widely dispersed production, marketing activities, and communicating with people in distant locations. ) EG. McDonalds; customize menu offerings. India beef/ Compete with different competitors. Produce locally, cost, currency risk.
C2 /culture difference
Culture: learned norms based on values, attitudes, and beliefs shared by a group of people. Component of culture: Aesthetics, values and attitudes, manners, social structure, religion, personal communication, education, physical environment. Religion; a system of shared beliefs and rituals concerning the realm of sacred. Why culture and cultural diversity are important in IB? 1. Because every business function is subject to cultural influence 2. Bring together people of diverse backgrounds and experience
Globalization refers to the trend toward greater economic, cultural, political, and technological interdependence among national economies. Reduction of barriers to the movement of trade, capital, technology, and people. Has two facets:1. Globalization of Markets; the merging of historically distinct and separate national markets into one huge global marketplace. Benefits: cost, new market opportunities, levels uneven income streams. 3 causes of globalization are falling trade barriers, same basic products worldwide, convergence of tastes and preferences 2. Globalization of production; access to lower-cost workers, technical expertise, production input eg. Resources. Why companies engage in ‘IB’; to expand sales (potential market and profit), to acquire resources (low cost, better products, ksa), diversify or reduce risk. Four Elements of IB ESSAY!!1. The forces of globalization (influence every aspect of the global business environment) 2. The international business environment (influence how firms conduct their operations) 3. The national business environments (unique characteristics that cause synergies but tension as well)4.International firm management (managing widely dispersed production, marketing activities, and communicating with people in distant locations. ) EG. McDonalds; customize menu offerings. India beef/ Compete with different competitors. Produce locally, cost, currency risk.
C2 /culture difference
Culture: learned norms based on values, attitudes, and beliefs shared by a group of people. Component of culture: Aesthetics, values and attitudes, manners, social structure, religion, personal communication, education, physical environment. Religion; a system of shared beliefs and rituals concerning the realm of sacred. Why culture and cultural diversity are important in IB? 1. Because every business function is subject to cultural influence 2. Bring together people of diverse backgrounds and experience