summary of international business_ ch 1-4

8/16/2019 Summary of International Business_ Ch 1-4

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Summary of InternationalBusiness

Chapters ( 1 – 4 )

Best Wishs By :

Moataz M. Shawey


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!lo"alization1

•#es$ri"e the pro$ess of %lo"alization an& how it a'e$ts

marets an& pro&u$tion

•I&entify the two for$es $ausin% %lo"alization to in$rease

•Summarize the ei&en$e for ea$h main ar%ument in the%lo"alization &e"ate

•Summarize the %lo"alization &e"ate

•I&entify the types of $ompanies that parti$ipate in

international "usiness

•#es$ri"e the %lo"al "usiness enironment an& i&entify its

four main elements


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#is$ussion uestion – 1 *+,-

• What "enets mi%ht $ompanies o"tainfrom the %lo"alization of marets an&the %lo"alization of pro&u$tion/

• !lo"al marets $an re&u$e maretin%$osts0 $reate new maret opportunities

a"roa&0 an& leel in$ome streams.• !lo"al pro&u$tion $an allow a$$ess tolower$ost worers0 te$hni$al e2pertise0an& pro&u$tion inputs.

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!lo"alization #riers 1 7allin%Barriers *+31

• 8emoe "arriers to tra&e inestment

– !9 – W;

– 8e%ional tra&e a%reements

!lo"alization #riers , e$hnolo%i$alInnoation•


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#is$ussion uestion ,

++++++++++ is the alue of all %oo&s an&seri$es pro&u$e& "y a $ountry>s &omesti$an& international a$tiities oer a oneyear

perio&.a. !ross #omesti$ *ro&u$t

?". !ross @ational *ro&u$t

$. !@* *er Capita


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Ao"s an& Wa%es *+3

• ;pponents –


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Da"or0


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@ational Soerei%nty

• ;pponents – Supranational institutions re&u$e autonomy

of national0 re%ional0 an& lo$al %oernments

• Supporters – !lo"alization has "enete& so$ieties "y

helpin% to sprea& &emo$ra$y worl&wi&e

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Impa$t on Culture

• ;pponents – #estroys $ultural &iersity – omo%enizes our worl&

– Banrupts lo$al small "usinesses• Supporters – Spe$ialize an& tra&e to o"tain other %oo&s – Import $ultural %oo&s from other nations – *rote$ts &eeper moral an& $ultural norms

Int. Business Summary M.M.Shawy

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#is$ussion uestion – 3 *+4,

• What &oes the ei&en$e su%%est forea$h "ran$h of the &e"ate on%lo"alization an& in$ome ineJuality/

• ;n the ineJuality within nations &e"ate0 stu&ies su%%estthat &eelopin% nations $an "oost in$omes of their poorestmem"ers of so$iety "y inte%ratin% them into the %lo"ale$onomy.

• ;n the ineJuality "etween nations &e"ate0 it appears thatnations more open to tra&e an& inestment %row fasterthan wealthy nations0 while sheltere& e$onomies are worseo'.

• ;n the %lo"al ineJuality &e"ate0 it is %enerally a%ree& that%lo"al poerty has fallen in re$ent &e$a&es0 thou%h there is

&isa%reement on the e2tent of the &rop. 16Int. Business Summary M.M.Shawy115,615


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International Business *layers*+45

• Multinational Corporation – Business that has &ire$t inestments a"roa&

in multiple $ountries

• Small Businesses an&


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CrossCultural

Business2

•#es$ri"e $ulture an& e2plain the si%ni$an$e of national

$ulture an& su"$ultures

•I&entify the $omponents of $ulture an& &es$ri"e their

impa$t on international "usiness

•#es$ri"e $ultural $han%e an& e2plain how $ompanies

an& $ulture a'e$t ea$h other

•


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What is Culture/ *+FF

• Set of alues0 "eliefs0 rules an& institutionshel& "y a spe$i$ %roup of people

• s own ethni$ %roup or$ulture is superior to that of others

• Cultural litera$y

– #etaile& nowle&%e of a $ulture thatena"les a person to fun$tion e'e$tielywithin it


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#is$ussion uestion 1

• Why shoul& "usiness people tryto aoi& ethno$entri$ity an&

&eelop $ultural litera$y/s iews ofother $ultures an& $auses them tooerloo important human an&

enironmental &i'eren$es amon%$ultures. Cultural litera$y improes thea"ility of mana%ers to mana%eemployees0 &eelop an& maret

pro&u$ts0 an& $on&u$t ne%otiations in 14Int. Business Summary M.M.Shawy115,615


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Components of Culture *+F-H

– 9estheti$s

– Kalues G attitu&es

– Manners G $ustoms

– So$ial stru$ture – 8eli%ion

– *ersonal $ommuni$ation

–


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Customs &i'er from +++++++ in that they&ene appropriate ways or "ehaiors inspecifc situations.

a. Kalues ". 9ttitu&es

?$. Manners

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• ow &oes an un&erstan&in% of thespoen0 written0 an& "o&y lan%ua%e ina maret a"roa& $ontri"ute to

"usiness su$$ess/Lnowle&%e of a $ulture>s spoenan& written lan%ua%e %ies

international mana%ers insi%htinto why people thin an& a$t theway they &o.

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ofste&e 7ramewor *+-

• In&ii&ualism s. $olle$tiism

• *ower &istan$e

• n$ertainty aoi&an$e• 9$hieement s. nurturin%

• Don%term orientation

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Cultures with small ++++++++++++ ten& to&isplay %reater eJuality an& a more eJual&istri"ution of rewar&s.

a. In&ii&ualism?". *ower &istan$e

$. n$ertainty aoi&an$e


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*oliti$s0 Daw0 an& Business


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ypes of *oliti$al 8is *+16F

• ConEi$t an& iolen$e

• errorism an& i&nappin%

• *roperty seizure• *oli$y $han%es

• Do$al $ontent reJuirements

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Mana%in% *oliti$al 8is

• 9&aptation

In$orporateris into

"usinessstrate%ies – *artnerships

– Do$alization

– #eelopmentassistan$e

– Insuran$e

• Information%atherin%!ather &ata to

"etter pre&i$t

an& mana%eris – Current

employeeswith releantinformation

– 9%en$iesspe$ializin%in politi$alris seri$es

• InEuen$elo$al politi$s*resent rm>s

iews on

politi$almatters – Do""yin%

• InEuen$in%lo$allawmaers

– Corruption• 7orei%n

Corrupt*ra$ti$es9$t

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In$orporatin% politi$al ris into "usinessstrate%ies "y mo&ifyin% operations0 thepro&u$t mi20 or some other "usiness

element is $alle& ++++++++++++.a. Spe$ialization

". !lo"alization

?$. Do$alization

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Ciil Daw

N #ates to8omantimes in thefth $entury

B.C.N 8ules an&

statutes$onstitute ale%al $o&e

N #enes allo"li%ations0responsi"ilities0 an&priile%es

heo$ra

ti$ Daw• De%altra&ition"ase& on

reli%ioustea$hin%s

• Islami$law0

Aewishlaw0 an&in&u law

Common

Daw• ra&ition

– nation>sle%alhistory

• *re$e&ent – past $ases

"efore the$ourts

• sa%e – how laws

areapplie&

P_112

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#is$ussion uestion – 3 *+115

• What are intelle$tual propertyri%hts an& what is their si%ni$an$eto "usiness/

• Intellectual property rights are le%al ri%htsto resour$es that result from intelle$tuala"ilities an& any in$ome these resour$es%enerate. Die other types of property0

intelle$tual property $an "e tra&e&0 sol&0an& li$ense& in return for fees an&orroyalty payments. Intelle$tual propertylaws are &esi%ne& to $ompensate peoplewhose property ri%hts are iolate&.

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So$ial 8esponsi"ility Issues

*+11N !o "eyon& le%al o"li%ations to "alan$e$ommitments to inestors0 $ustomers0$ommunities0 an& other $ompanies

N 7i%ht to eliminate "ri"ery an& $orruption

N Improe la"or $on&itions an& %uar& human ri%hts

N*ra$ti$e fair tra&e to help the &isa&anta%e&

N*rote$t the enironment an& $onsere resour$es

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he philosophy of "usiness ethi$s an&so$ial responsi"ility $oneye& "y thee2pression0 OWhen in 8ome0 &o as

the 8omans &o0P is $alle& the ++++++++++ iew.

a. 8i%hteous moralist

?". Cultural relatiist

$. tilitarian

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Centrally *lanne&


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Mi2e&


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Maret


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Classifyin% Countries *+156

N #eelope& Country – i%hly in&ustrialize&0 hi%hly e=$ient an& whose people

enoy a hi%h Juality of life

•


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___________ is the relative ability of two

countries% currencies to buy the same bas#et of

goods in those two countries. a. &roductivity

b. &urchasing &ower

*c. &urchasing &ower &arity

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#is$ussion uestion – 4 *+151

!hat is economic transition and what

are the remaining obstacles in post'

communist countries$

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I t B i S

9nswer to #is$ussion uestion 4

Economic transition inoles $han%in% a nation>sfun&amental e$onomi$ or%anization an& $reatin%new freemaret institutions.

summary of international business_ ch 1-4

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