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international business > midterm > Flashcards

midterm Flashcards

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1
Q

how can a company engagement in international business 4
mode of operations

A
  • foreign direct investment (controlling interest)
  • joint venture ( 2 or + companies share ownership of investment)
  • portfolio investment (non-controlling interest)
  • exporting and importing goods or services
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2
Q

short definition of international business

A

company that operates in more than one country
export/import/invest OR collabortive arrangements

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3
Q

3 types of collaborative arrangements

A
  • licensing agreements
  • managements contracts
  • long-term contractual arrangements
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4
Q

definition multinational company

A

company that have already a global approach to markets and production and have operations in minimum 6 countries

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5
Q

what structures makes a company an international one

A

has headquarters and subsidiaries

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6
Q

def and components of headquarters

A

in home country
board of directors:
- chairman
- executive (CEO,CFO,COO,CMO,CTO,CPO)
–> take strategic decisions

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7
Q

subsidiaries definition

A

in host country
where the strategy are implemented
=> give profit and dividends to headquarters

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8
Q

definition globalization and examples of areas

A

relationships and wider interdependence amoung peple from different countries in all areas:
- business (trade)
- culture
- education (exchange student)
- diseases (COVID)
-war

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9
Q

what does globalization do?

A

uniformization of tastes and behavior of the consumer
contributes to:
- digital economy and development
-decrease of transportation and telecomm costs
- develop in the global financial markets

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10
Q

corporation strategies with globalization => capture scale economies
5 examples

A
  • in production -> lower production costs
  • in marketing -> global brand/advertising
  • research and development -> collaboration
  • in logistic -. large distribution centers
  • in sourcing -> lower material costs
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11
Q

normal structure vs new structure organization big difference

A

normal: headquarters ask subsidiaries profit and dividends to the subsidiaries
new : more communication between headquarters and subsidiaries but not command

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12
Q

3 criticism of globalization

A
  • cultural homogeny
  • environmental stress
  • growing income inequality and personal stress
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13
Q

3 environmental differences

A
  • culture
  • political risk
  • government, legal, economic
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14
Q

4 cultural factors

A
  1. cultural awareness
  2. identification and dynamics of cultures
  3. behavioral practices affecting business
  4. strategies for dealing with cultural differences
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15
Q

definition of culture

A

refers to norms based on values, attitudes, and beliefs of a group of people

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16
Q

on what can culture be based
10

A
  • nationality
  • ethnicity
  • values
  • norms
  • symbol
  • language
  • traditions
  • religion
  • gender
  • political ideology
    ……
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17
Q

how can culture help international businesses 2

A
  • gain global competitive advantage by bringing together people of diverse backgrounds and experience
  • deeper knowledge about products in ways to produce and deliver them
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18
Q

definition cultural collision

A
  • occur when company implements practices that are less effective OR when employees encounter distress because of difficulty in accepting/adjusting to foreign behaviors
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19
Q

example of cultural collision

A

assumptions that all societal subgroups are similar

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20
Q

definition nation

A

useful definition of society because similarity among people is cause and an effect of national boundaries:
- laws apply primarily along national boundaries
- language and values are shared within borders
- rites and symbols are shared along national boundaries

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21
Q

communication example and problem

A
  • spoken/writtin
  • silent language
    —-body language
    (there is no universal meaning for gesture)
    —-color, distance, time and punctuality, prestige
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22
Q

political risk definition

A

refers to the risk that political decisions or political events in a country negatively affect the profitability or sustainability of an investment

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23
Q

example of political risks
3

A
  • weak legal system
  • volatile political systems
  • fragile regimes
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24
Q

types of political risks
4

A
  • systemic
  • procedure
  • distributive
  • catastrophic
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25
definition systemic risks
happen when big problems affect lots of countries or businesses at the same time -> if one falls, it can makes the others fall too covid
26
definition procedure risk
risk evolving from daily movement of people, products, and funds from point to point in the global market -> each moves creates a procedural transaction between units involved and sometimes frictions
27
definition distributive risks
result of the profits generated by foreign companies in the local economy - gains or losses from a specific transaction ex: delays, disruption in supply chain leading to losses in sales or increase in costs
28
definition of catastrophic risk
arises from specific dramatic events, disrupt business environment, and affect the operations of every company in a country ex: illegal regime change, civil disorder
29
5 types of legal systems
- customary laws (mongolia) - civil laws (asia) - common law (north america) - muslim law (marocco) - mixed system (quebec)
30
Definition legal issues
refers to a matter or question that involves the interpretation, application, or enforcement of laws, regulations, contracts, or other legal principles
31
3 legal issues
- operation concerns (tax labor, admin) - strategic concerns (product and safety liability, marketplace behavior, arbitration) - intellectual property rights
32
6 examples of economics factors that influences managerial decisions
- exchange rate - level of population - inflation - purchasing power of consumers - savings rate - public debt
33
3 types of economic systems
- Communism - Socialism - Capitalism
34
Communism 3
- low degree of economic freedom - government owns most or all resources - advocate centralized, large-scale, capital-intensive production
35
Socialism 3
- medium degree of economic freedom - government and private ownership of economic resources mixed in varying proportion - advocate Optimizing economic efficiency, promoting egalitarian, anticipating self-interest
36
Capitalism 3
- high economic freedom - mostly private ownership of resources - advocates decentralized entrepreneurial innovation - property rights and individualism
37
definition ethics
the accepted principles of right or wrong governing the conduct of business people depends on values, culture, different worldwide
37
definitions ethical issues
differences in economic development, politics, legal system, and culture
38
example of common ethical issues 5
- employment practices - environmental pollution (global warning, sustainability) - human rights - corruption - moral obligations (philanthropy usually for big businesses)
39
definition corporate responsability
concept where companies integrate social and environmental concerns in their business operations and in interaction with their stakeholders --> voluntary basis --> strive to be a win-win solution to company's management and their shareholders
40
ESG standards
the tripple bottom line (TBL) 1. people (social) 2. planet (environmental) 3. profit (economic)
41
example of stakeholders 5
- shareholders - employees - investors - consumers/suppliers - public authorities
42
definition of environmental standards
related and care for nature and the sustainability of the planet
43
definition of social standards
how they engage with stakeholders
44
definition of governance standards
shareholders rights, boards leadership, employees, internal control, risk assessment
45
definition greenwashing
lying about the environment friendliness of a product
46
definition social washing
misleading claims about a company's social responsibility initiatives or positive impact on society
47
yearly report required from the european union
Integrated report
48
3 types of attitudes
- ethnocentric - polycentric - goecentric
49
ethnocentric
belief or viewpoint that one's own culture, values, and customs are superior to those of other cultures, leading to a biased or judgmental perspective towards people from different backgrounds.
50
3 factors to consider when going global
physical institutional competitive advantage
51
external environment factors that affects international business
- physical factors - institutional factors - competitive environment
52
3 components of competitive environment
- product strategy - resources and environment - competitors in each market
53
4 components of institutional factors
- laws and regulations (taxes) - legal policies - cultural forces - economic forces
54
2 components of physical factors
- demographic - geographic
55
globalization big definition
Globalizationis the word used to describe the growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information.
56
3 international mode of operations
- goods exports/imports - services exports/imports - investment
57
5 advantages of globalization
- job creation - foreign direct investment - economies of scale - technological innovation - development of weaker economies
58
3 critism of globalization
-threats to national sovereignty - environmental stress - growing income inequality
59
factors impacting the futur of globalization
- trade political conflict - attitude of consumers - supply chain management - behavior of national government
60
cultural diversity vs cultural collision
Cultural diversity ► nationalities that come together with diverse perspectives and experiences ► deeper knowledge of how to create and deliver products and services ► can be difficult to manage Cultural collision ► contact among divergent cultures creates problems ► may result in implementation of practices that are less effective and to employees’ distres
61
How to Access the Risk of Cultural Diversity / Collision?
- social stratification - work motivation - relationship preferences - risk-taking behavior - information and tasks processing
62
rule of man definition
ultimate power in the hands of one person and is the cornerstone of totalitarian governments. => china
63
rule of law definition
hallmark of democratic governments and holds that authority comes from written and transparent law => united states
64

international business (2 decks)

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