BLOCK 1

Question 1

WHAT IS INTERNATIONAL BUSINESS?

Answer 1

The study of transactions taken across national borders to satisfy customers’ wants and needs

Question 2

WHAT IS GLOBALISATION ?

Answer 2

the growing interdependence of locations and economic factors across regions and borders

Question 3

WHAT ARE THE 4 ELEMENTS OF INCREASED GROWTH OF LOCATIONS INTERDEPENDENCE?

Answer 3

1) culture
2) cross-border migration
3) standardised products
4) homogenous products

Question 4

WHAT ARE THE 4 ELEMENTS OF INCREASED GROWTH OF FIRMS INTERDEPENDENCE?

Answer 4

1) M&A
2) alliances
3) joint ventures
4) increased comp in markets for resources and expertise

Question 5

WHAT IS INTERNATIONAL CAPITAL FLOW?

Answer 5

the paid transfer of the right to use monetary sources between countries

Question 6

HOW TO CLASS ICF IN 4 WAYS?

Answer 6

1) international bank lending
2) international bonds
3) FDI
4) monetary flow (buy & sell foreign market)

Question 7

WHAT IS A MNE?

Answer 7

firm engaging in value-added Ib and affiliated in more than one country

Question 8

WHAT ARE OTHER 3 WAYS TO GLOBALISE ?

Answer 8

1) outsourcing = someone else produces for you
2) offshoring = a partner does it for you
3) near shoring = relocating to diff country